Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies

Miah, Mohammad Dulal; Hasan, Rashedul; Usman, Mohammed

doi:10.3390/su132313281

Open AccessArticle

Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies

by

Mohammad Dulal Miah

^1,*,

Rashedul Hasan

²

and

Mohammed Usman

³

¹

Department of Economics and Finance, University of Nizwa, Nizwa 616, Oman

²

Department of Economics, Finance, and Accounting, Coventry University, Coventry CV1 5ED, UK

³

Department of Management, University of Nizwa, Nizwa 616, Oman

^*

Author to whom correspondence should be addressed.

Sustainability 2021, 13(23), 13281; https://doi.org/10.3390/su132313281

Submission received: 28 October 2021 / Revised: 16 November 2021 / Accepted: 23 November 2021 / Published: 30 November 2021

(This article belongs to the Special Issue Sustainability and Green Finance in the Era of Non-Financial Reporting: From Sustainability Reporting to Greenwashing)

Download Review Reports Versions Notes

Abstract

This paper examines the effects of carbon emissions on the accounting and market-based performance of financial and non-financial firms in emerging economies. Data for 104 financial and 328 non-financial firms constituting 2591 observations operating in 22 emerging economies were collected from the Datastream database for the period 2011–2020. We applied OLS and 2SLS regression techniques to analyze the data. Results show that financial firms emit less carbon than their non-financial counterparts. The results further show that carbon emissions reduce firms’ return on equity, Tobin’s Q, Z-score, and credit rating. Our findings remain robust in different estimation techniques and alternative proxies of performance. Our results have some important policy implications for emerging economies.

Keywords: environmental performance; carbon emission; emerging economies; firm performance

Share and Cite

MDPI and ACS Style

Miah, M.D.; Hasan, R.; Usman, M. Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies. Sustainability 2021, 13, 13281. https://doi.org/10.3390/su132313281

AMA Style

Miah MD, Hasan R, Usman M. Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies. Sustainability. 2021; 13(23):13281. https://doi.org/10.3390/su132313281

Chicago/Turabian Style

Miah, Mohammad Dulal, Rashedul Hasan, and Mohammed Usman. 2021. "Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies" Sustainability 13, no. 23: 13281. https://doi.org/10.3390/su132313281

APA Style

Miah, M. D., Hasan, R., & Usman, M. (2021). Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies. Sustainability, 13(23), 13281. https://doi.org/10.3390/su132313281

Note that from the first issue of 2016, this journal uses article numbers instead of page numbers. See further details here.

Article Menu

Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies

Abstract

Share and Cite

Article Metrics

Article Access Statistics

Further Information

Guidelines

MDPI Initiatives

Follow MDPI