Purpose

The purpose of this study is to examine the effect of carbon emission on accounting and market-based financial performance of Indian companies.

Design/methodology/approach

Firms reporting emission data on Carbon Disclosure Project (CDP) are considered for empirical analysis and the data have been collected for the period from 2013 to 2019. The study adopts Heckman's regression model to control for self-selection bias and it also examines the moderating role of environmental sensitivity through industry-wise analysis. The results are also checked for potential endogeneity using generalized methods of moments estimation.

Findings

Primarily, the findings postulate a significant negative impact of carbon emissions on both measures of financial performance. Further, it also determines that environmentally sensitive firms are more exposed to such negative influence of emission compared to nonsensitive companies.

Research limitations/implications

Current research will enhance the understanding of managers about the economic impact of carbon emission, especially in an economy where emissions are not completely regulated. The study provides an economic rationale to the industries to reduce emission volume. It will also assist regulators to draft environmental policies by considering environmental sensitivity. It should be noted that the study is based on the Indian firms that have reported emission data on the CDP during the study period.

Originality/value

The present study addresses one of the most important but less explored issues of environmental research in one of the largest emerging economies of the South Asian region. The study presents a comprehensive view by covering accounting as well as market-based indicators along with the moderating effect of environmental sensitivity.

中文翻译：

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碳排放对财务业绩的影响：来自印度的经验证据

目的

本研究的目的是研究碳排放对印度公司会计和基于市场的财务业绩的影响。

设计/方法/方法

报告碳披露项目 (CDP) 排放数据的公司被考虑用于实证分析，数据已收集 2013 年至 2019 年期间。该研究采用赫克曼回归模型来控制自我选择偏差，并检查调节作用通过行业分析来评估环境敏感性。还使用广义矩估计方法检查结果的潜在内生性。

发现

首先，研究结果假设碳排放对财务业绩的两种衡量方式都有显着的负面影响。此外，它还确定了与不敏感的公司相比，对环境敏感的公司更容易受到排放的负面影响。

研究限制/影响

当前的研究将增强管理者对碳排放的经济影响的理解，特别是在排放没有完全管制的经济体中。该研究为行业减少排放量提供了经济依据。它还将帮助监管机构通过考虑环境敏感性来起草环境政策。应该注意的是，该研究基于在研究期间报告了 CDP 排放数据的印度公司。

原创性/价值

本研究解决了南亚地区最大的新兴经济体之一的环境研究中最重要但探索较少的问题之一。该研究通过涵盖会计和基于市场的指标以及环境敏感性的调节作用提出了一个全面的观点。