Do Foreign Investors Affect Carbon Emission Disclosure? Evidence from South Korea
Abstract
:1. Introduction
2. Backgrounds and Hypotheses
2.1. Voluntary Disclosure of Carbon Emissions
2.2. Foreign Investors’ Monitoring
2.3. Hypothesis Development
3. Research Design and Sample Description
3.1. Research Model
3.2. Data Selection
4. Empirical Results
4.1. Descriptive Statistics
4.2. Regression Results and Discussion
4.3. Additional Analysis
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Voluntary | If firms voluntarily disclose the information of carbon emission is equal to 1, and 0 otherwise |
For | Percentage of shares held by foreign investors |
ESG | Natural logarithm of scores of ESG |
Chaebol | Chaebol-affiliated firms |
Ia | Information asymmetry |
Size | log(total asset) |
Lev | Total liabilities/total assets |
Roa | Net income/total assets |
Growth | (Sales in current year—sales in prior year)/sales in the prior year |
Loss | Equal to 1 if the firm reports losses, 0 otherwise |
Da | Discretionary accruals measured by the model in Kothari et al. [38] |
Vol | The average trading volume of firm |
Ind | Industry dummies |
Yr | Year dummies |
CDP surveyed firms with December year-end in years 2014–2019 | 2408 |
Less: | |
No ESG data | 390 |
No financial data, financial institution | 258 |
Final observation | 1760 |
Variables | Mean | STD | Q1 | Median | Q3 |
---|---|---|---|---|---|
Voluntary | 0.268 | 0.443 | 0.000 | 0.000 | 1.000 |
For | 0.069 | 0.119 | 0.005 | 0.019 | 0.076 |
ESG | 3.212 | 0.585 | 2.833 | 3.218 | 3.555 |
Chaebol | 0.090 | 0.286 | 0.000 | 0.000 | 0.000 |
Ia | 0.650 | 0.477 | 0.000 | 1.000 | 1.000 |
Size | 25.387 | 1.429 | 24.444 | 25.178 | 26.075 |
Lev | 0.400 | 0.209 | 0.230 | 0.393 | 0.549 |
Roa | −0.053 | 0.436 | −0.035 | 0.042 | 0.100 |
Growth | 0.028 | 0.331 | −0.090 | 0.035 | 0.158 |
Loss | 0.306 | 0.461 | 0.000 | 0.000 | 1.000 |
Da | 0.000 | 0.124 | −0.045 | 0.007 | 0.055 |
Vol | 0.031 | 0.012 | 0.020 | 0.030 | 0.040 |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
(1) Voluntary | 1.00 | 0.28 | 0.43 | 0.29 | −0.06 | 0.45 | 0.18 | −0.02 | −0.05 | 0.04 | −0.04 | −0.17 |
<0.0001 | <0.0001 | <0.0001 | 0.01 | <0.0001 | <0.0001 | 0.44 | 0.04 | 0.09 | 0.09 | <0.0001 | ||
(2) For | 1.00 | 0.33 | 0.22 | −0.09 | 0.54 | −0.09 | 0.12 | 0.02 | −0.16 | 0.00 | −0.21 | |
<0.0001 | <0.0001 | <0.0001 | <0.0001 | <0.0001 | <0.0001 | 0.00 | <0.0001 | 0.69 | <0.0001 | |||
(3) ESG | 1.00 | 0.40 | −0.04 | 0.50 | 0.16 | 0.09 | −0.02 | −0.11 | −0.02 | −0.22 | ||
<0.0001 | 0.00 | <0.0001 | <0.0001 | <0.0001 | 0.21 | <0.0001 | 0.24 | <0.0001 | ||||
(4) Chaebol | 1.00 | −0.04 | 0.42 | 0.11 | 0.05 | 0.02 | −0.06 | 0.00 | −0.12 | |||
<0.0001 | <0.0001 | <0.0001 | <0.0001 | 0.01 | <0.0001 | 0.75 | <0.0001 | |||||
(5) Ia | 1.00 | 0.06 | −0.01 | 0.05 | 0.03 | 0.03 | 0.04 | 0.41 | ||||
<0.0001 | 0.04 | <0.0001 | <0.0001 | 0.00 | <0.0001 | <0.0001 | ||||||
(6) Size | 1.00 | −0.11 | 0.22 | 0.09 | −0.24 | 0.05 | −0.24 | |||||
<0.0001 | <0.0001 | <0.0001 | <0.0001 | <0.0001 | <0.0001 | |||||||
(7) Lev | 1.00 | −0.31 | −0.01 | 0.27 | −0.21 | 0.17 | ||||||
<0.0001 | 0.14 | <0.0001 | <0.0001 | <0.0001 | ||||||||
(8) Roa | 1.00 | 0.20 | −0.51 | 0.48 | −0.23 | |||||||
<0.0001 | <0.0001 | <0.0001 | <0.0001 | |||||||||
(9) Growth | 1.00 | −0.24 | 0.14 | 0.01 | ||||||||
<0.0001 | <0.0001 | 0.13 | ||||||||||
(10) Loss | 1.00 | −0.37 | 0.26 | |||||||||
<0.0001 | <0.0001 | |||||||||||
(11) Da | 1.00 | −0.06 | ||||||||||
<0.0001 | ||||||||||||
(12) Vol | 1.00 |
Variables | Est. | Wald x2 |
---|---|---|
Intercept | −30.125 | 238.104 *** |
For | 0.009 | 4.366 ** |
Size | 1.020 | 219.067 *** |
Lev | 0.164 | 14.249 *** |
Roa | −2.079 | 4.209 |
Growth | −0.232 | 1.702 |
Loss | 0.156 | 0.550 |
Da | 0.205 | 0.078 |
Vol | −8.595 | 1.600 |
Ind | Included | |
Yr | Included | |
Pseudo R2 | 0.29 | |
Log Likelihood | 532.35 *** | |
Observations | 1760 |
Variables | Est. | Wald x2 |
---|---|---|
Intercept | −27.6756 | 72.1795 *** |
For | −0.085 | 2.590 |
ESG | 0.764 | 4.811 ** |
For X ESG | 0.023 | 2.834 * |
Size | 0.807 | 54.704 *** |
Lev | 3.260 | 38.763 *** |
Roa | −0.036 | 0.006 |
Growth | −0.299 | 0.714 |
Loss | 0.106 | 0.176 |
Da | 0.020 | 0.001 |
Vol | −39.483 | 8.212 *** |
Ind | Included | |
Yr | Included | |
Pseudo R2 | 0.31 | |
Log Likelihood | 372.36 *** | |
Observations | 1760 |
Variables | Est. | Wald x2 |
---|---|---|
Intercept | −24.026 | 181.090 *** |
For | 0.413 | 2.740 * |
Chaebol | 0.659 | 20.341 *** |
For X Chaebol | 1.421 | 9.673 *** |
Size | 0.783 | 150.949 *** |
Lev | 0.083 | 3.142 * |
Roa | 0.357 | 2.757 * |
Growth | −0.023 | 0.012 |
Loss | −0.105 | 0.320 |
Da | −1.315 | 2.189 |
Vol | −21.866 | 15.367 *** |
Ind | Included | |
Yr | Included | |
Pseudo R2 | 0.275 | |
Log Likelihood | 568.18 *** | |
Observations | 1760 |
Variables | Est. | Wald x2 |
---|---|---|
Intercept | −26.800 | 254.306 *** |
For | 0.196 | 0.345 |
Ia | −0.551 | 1.713 |
For X Ia | 0.861 | 3.874 ** |
Size | 0.909 | 232.910 *** |
Lev | 0.076 | 2.441 |
Roa | 0.360 | 2.556 |
Growth | 0.001 | 0.000 |
Loss | −0.195 | 1.051 |
Da | 0.407 | 0.349 |
Vol | −24.053 | 17.376 *** |
Ind | Included | |
Yr | Included | |
Pseudo R2 | 0.262 | |
Log Likelihood | 537.57 *** | |
Observations | 1760 |
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Kim, E.; Kim, S.; Lee, J. Do Foreign Investors Affect Carbon Emission Disclosure? Evidence from South Korea. Int. J. Environ. Res. Public Health 2021, 18, 10097. https://doi.org/10.3390/ijerph181910097
Kim E, Kim S, Lee J. Do Foreign Investors Affect Carbon Emission Disclosure? Evidence from South Korea. International Journal of Environmental Research and Public Health. 2021; 18(19):10097. https://doi.org/10.3390/ijerph181910097
Chicago/Turabian StyleKim, Eunsoo, Suyon Kim, and Jaehong Lee. 2021. "Do Foreign Investors Affect Carbon Emission Disclosure? Evidence from South Korea" International Journal of Environmental Research and Public Health 18, no. 19: 10097. https://doi.org/10.3390/ijerph181910097