The Mediating Role of Financial Reporting Quality in the Relationship Between CEO Power and Carbon Emission Disclosures: Evidence From Vietnamese Companies

IF 12.5 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-02-11 DOI:10.1002/bse.4196

Nguyen Vinh Khuong, Vu Tran Trong Tai, Le Huu Tuan Anh

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引用次数: 0

Abstract

This study investigates the impact of chief executive officer (CEO) power on carbon emission disclosures (CDI) and the mediating role of financial reporting quality (FRQ) in this relationship. We employ the two‐step system generalized method of moments (Sys‐GMM) estimator to examine the relationship between CEO power and CDI and the mediating role of FRQ. We utilize a dataset of Vietnamese listed firms between 2015 and 2022, totalling 494 firm‐year observations. We further perform a battery of robustness tests. We find that CEO power positively influences CDI, indicating that CEOs may enhance transparency to bolster their reputation. However, our results also reveal a negative impact of CEO power on FRQ, supporting the notion that powerful CEOs might prioritize personal interests at the expense of reporting integrity. Additionally, we demonstrate that FRQ mediates the relationship between CEO power and CDI, suggesting that while CEOs promote environmental disclosure' transparency, they may concurrently engage in earnings management practices that diminish FRQ. This research contributes to the literature by providing empirical evidence on the role of CEO power in facilitating both financial and environmental disclosures in an emerging market context. The study highlights the mediating role of FRQ, offering new insights into the governance mechanisms that influence corporate transparency.

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来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.