Orazalin, Nurlan S and Ntim, Collins G and Malagila, John K (2023) Board Sustainability Committees, Climate Change Initiatives, Carbon Performance, and Market Value. British Journal of Management, 35 (1). pp. 295-320. DOI https://doi.org/10.1111/1467-8551.12715
Orazalin, Nurlan S and Ntim, Collins G and Malagila, John K (2023) Board Sustainability Committees, Climate Change Initiatives, Carbon Performance, and Market Value. British Journal of Management, 35 (1). pp. 295-320. DOI https://doi.org/10.1111/1467-8551.12715
Orazalin, Nurlan S and Ntim, Collins G and Malagila, John K (2023) Board Sustainability Committees, Climate Change Initiatives, Carbon Performance, and Market Value. British Journal of Management, 35 (1). pp. 295-320. DOI https://doi.org/10.1111/1467-8551.12715
Abstract
We examine the interrelationships among board sustainability committees, process-based climate change initiatives, outcome-based carbon performance, and market value through the lens of economic- and social-based theoretical perspectives. Using a panel dataset of 8,408 observations from 35 countries between 2002 and 2019, we find that higher levels of actual greenhouse gas (GHG) emissions are negatively associated with market value. Further, we reveal a positive association between process-based climate change initiatives and market value. We then provide evidence that process-based climate change initiatives are positively related to increased levels of GHG emissions. We also observe that the presence of a board sustainability committee has a positive impact on market value, but does not seem to improve outcome-based carbon performance. Finally, we show that the predicted relationships vary across different country-groups, sector-groups, and periods. Our empirical findings are robust to alternative measures, endogeneities, and sample selection bias. Overall, our evidence supports the symbolic legitimation/greenwashing view in that firms are likely to employ process-based climate change initiatives under a symbolic approach to create positive impressions among stakeholders and protect their legitimacy.
Item Type: | Article |
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Uncontrolled Keywords: | Board sustainability committees; carbon performance; climate change initiatives; economic- and social-based theoretical perspectives; market value |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 23 Feb 2023 16:52 |
Last Modified: | 16 May 2024 21:42 |
URI: | http://repository.essex.ac.uk/id/eprint/34864 |
Available files
Filename: British J of Management - 2023 - Orazalin - Board Sustainability Committees Climate Change Initiatives Carbon Performance.pdf
Licence: Creative Commons: Attribution 4.0