Carbon Emission Disclosure and the Allocation of Value added: Employee, Shareholder, Tax, and Creditor Views
DOI:
https://doi.org/10.31000/cpjcza64Keywords:
Carbon emission disclosure, Value added, Stakeholders, Value distribution, Environmental disclosureAbstract
This study examines the effect of carbon emission disclosure on the allocation of value added to key stakeholders-employees, shareholders, tax authorities, and creditors-using a stakeholder-oriented value added framework. The study employs an panel dataset comprising 628 firm-year observations of manufacturing publicly listed companies over the period 2019-2023. Panel data regression with industry and year fixed effects is applied as the main analytical method. The empirical results indicate that carbon emission disclosure functions as a value redistribution mechanism rather than a practice that uniformly enhances value for all stakeholders. Carbon emission disclosure is consistently negatively associated with value added allocated to employees and creditors, while it is positively related to value added distributed to shareholders, particularly after accounting for time effects. In contrast, no significant relationship is found between carbon emission disclosure and value added allocated to tax authorities, suggesting that value distribution to the government is more strongly driven by firms’ structural characteristics, such as size and leverage. The robustness tests confirm that these findings remain consistent after controlling for firm heterogeneity and unobserved selection bias. Theoretically, this study contributes to stakeholder theory, signaling theory, and legitimacy theory by demonstrating that carbon disclosure reshapes the internal distribution of corporate value. Practically, the findings offer important implications for managers, investors, and policymakers in designing more inclusive and sustainable environmental disclosure strategies.
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