The Impact of Changes in Carbon Emissions on Firm Value: Focusing on Voluntary Disclosure of Water Resources
Year: 2025
Type: article
Abstract: This study investigates how changes in carbon emissions influence firm value and the extent to which voluntary water resource disclosure moderates this relationship. Analyzing a sample of 702 South Korean listed firms from 2017 to 2021, increases in carbon emissions are negatively associated with firm value, signaling to the market potential operational inefficiencies or heightened regulatory risk in a carbon-constrained economy. More critically, our findings reveal a significant moderating effect of voluntary water disclosure. This suggests that transparent water reporting allows firms to contextualize their carbon performance, mitigating the adverse valuation impact of rising emissions by signaling a holistic commitment to environmental responsibility. From a signaling theory perspective, this integrated transparency reframes investor perceptions, transforming isolated emission concerns into components of a broader, more credible sustainability narrative, thereby reinforcing stakeholder trust and offering a strategic pathway to enhancing firm value amidst environmental challenges.
DOI: 10.14419/n52es715
Author: Suyon Kim
Subfield: Strategy and Management
Domain: Social Sciences
SDG: Climate action
Open Access status: bronze
OpenAlex ID: W4415864910
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