Corporate culture and carbon emission performance

Mostafa Monzur Hasan; Md Borhan Uddin Bhuiyan; Grantley Taylor

doi:10.1016/j.bar.2025.101564

Corporate culture and carbon emission performance

Mostafa Monzur Hasan
, Md Borhan Uddin Bhuiyan
, Grantley Taylor^*

^*Corresponding author for this work

Department of Accounting and Corporate Governance

Research output: Contribution to journal › Article › peer-review

14 Citations (Scopus)

Abstract

Using a large sample of U.S. firms from 2002 to 2020, we investigate the relationship between corporate culture and the extent of carbon emissions. We provide evidence that the quantum of carbon emissions is negatively associated with corporate cultural attributes manifested by integrity, teamwork, innovation, and respect. These results hold after controlling for potential endogeneity issues using several identification techniques. We also document that the negative culture–emissions relationship is magnified in firms with weak corporate governance and in those operating in environmentally sensitive industries. Additionally, this relationship is less salient in the presence of social capital. Finally, we demonstrate that in firms with a stronger culture, elevated carbon emissions result in a lower firm value. Our findings may be of interest to environmental regulators and management in their pursuit of firm-level carbon emission targets.

Original language	English
Article number	101564
Pages (from-to)	1-20
Number of pages	20
Journal	British Accounting Review
Volume	57
Issue number	1
DOIs	https://doi.org/10.1016/j.bar.2025.101564
Publication status	Published - Jan 2025

Bibliographical note

This article is a reprint of the premature publication, now in the correct volume and issue. This error bears no reflection on the article or its authors. The publisher apologizes to the authors and the readers for this unfortunate error. For citation purposes, please use the current publication details; Journal of Econometrics, 57/1, 101564.

Keywords

Carbon emissions
Corporate culture
Corporate governance
CSR

Access to Document

10.1016/j.bar.2025.101564

Cite this

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title = "Corporate culture and carbon emission performance",

abstract = "Using a large sample of U.S. firms from 2002 to 2020, we investigate the relationship between corporate culture and the extent of carbon emissions. We provide evidence that the quantum of carbon emissions is negatively associated with corporate cultural attributes manifested by integrity, teamwork, innovation, and respect. These results hold after controlling for potential endogeneity issues using several identification techniques. We also document that the negative culture–emissions relationship is magnified in firms with weak corporate governance and in those operating in environmentally sensitive industries. Additionally, this relationship is less salient in the presence of social capital. Finally, we demonstrate that in firms with a stronger culture, elevated carbon emissions result in a lower firm value. Our findings may be of interest to environmental regulators and management in their pursuit of firm-level carbon emission targets.",

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note = "This article is a reprint of the premature publication, now in the correct volume and issue. This error bears no reflection on the article or its authors. The publisher apologizes to the authors and the readers for this unfortunate error. For citation purposes, please use the current publication details; Journal of Econometrics, 57/1, 101564.",

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AU - Hasan, Mostafa Monzur

AU - Bhuiyan, Md Borhan Uddin

AU - Taylor, Grantley

N1 - This article is a reprint of the premature publication, now in the correct volume and issue. This error bears no reflection on the article or its authors. The publisher apologizes to the authors and the readers for this unfortunate error. For citation purposes, please use the current publication details; Journal of Econometrics, 57/1, 101564.

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N2 - Using a large sample of U.S. firms from 2002 to 2020, we investigate the relationship between corporate culture and the extent of carbon emissions. We provide evidence that the quantum of carbon emissions is negatively associated with corporate cultural attributes manifested by integrity, teamwork, innovation, and respect. These results hold after controlling for potential endogeneity issues using several identification techniques. We also document that the negative culture–emissions relationship is magnified in firms with weak corporate governance and in those operating in environmentally sensitive industries. Additionally, this relationship is less salient in the presence of social capital. Finally, we demonstrate that in firms with a stronger culture, elevated carbon emissions result in a lower firm value. Our findings may be of interest to environmental regulators and management in their pursuit of firm-level carbon emission targets.

AB - Using a large sample of U.S. firms from 2002 to 2020, we investigate the relationship between corporate culture and the extent of carbon emissions. We provide evidence that the quantum of carbon emissions is negatively associated with corporate cultural attributes manifested by integrity, teamwork, innovation, and respect. These results hold after controlling for potential endogeneity issues using several identification techniques. We also document that the negative culture–emissions relationship is magnified in firms with weak corporate governance and in those operating in environmentally sensitive industries. Additionally, this relationship is less salient in the presence of social capital. Finally, we demonstrate that in firms with a stronger culture, elevated carbon emissions result in a lower firm value. Our findings may be of interest to environmental regulators and management in their pursuit of firm-level carbon emission targets.

KW - Carbon emissions

KW - Corporate culture

KW - Corporate governance

KW - CSR

UR - https://www.scopus.com/pages/publications/85217718050

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DO - 10.1016/j.bar.2025.101564

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ER -

Corporate culture and carbon emission performance

Abstract

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Keywords

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