The influence of board characteristics on the relationship between carbon emissions and firm value

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2020-09-09

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en

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Abstract

Both carbon emissions and board characteristics affect firm value. The relationship between carbon emissions and firm value could be affected by an interaction between board characteristics and carbon emissions, as the influence of carbon emissions on firm value could depend on the sustainability measures that are taken by the board of a company. The interaction between carbon emissions and board characteristics could display the effectiveness of the sustainability measures and therefore influence the relationship between carbon emissions and firm value. This has been tested with panel data of European listed companies over the period 2014-2018. The results only support the interaction absolute carbon emissions and the presence of a sustainability committee in a model with a market based firm value. Other interactions are not supported. Although there is no strong evidence, the results could give new insights and create new opportunities for further research. Keywords Carbon emissions, firm value, board characteristics, board size, board tenure, CEO duality, sustainability committee, gender diversity, independent directors

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Faculteit der Managementwetenschappen

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