Work

The effect of co-opted boards on corporate carbon performance: Evidence from financially material industries

Year: 2024

Type: article

Abstract: We examine the relationship between co-opted boards and corporate carbon performance. Results show that co-opted boards decrease GHG intensity in financially material industries with no effect in non-financially material industries. For firms in financially material industries, this relationship is time-variant and positive when we interact GHG intensity with R&D investments. This result posits inefficient R&D allocation in the presence of co-opted boards. Our findings bring a more nuanced picture concerning the influence of co-opted boards on corporate carbon performance.

Source: Economics Letters

DOI: 10.1016/j.econlet.2024.111910

Authors: Etienne Develay, Nader S. Virk

Institution: Manchester Metropolitan University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $2,980