Abstract
Our study empirically investigates the relationship between several corporate characteristics and climate change reporting, using panel data for years 2018 to 2022 of 108 Canadian public companies. The level of climate change reporting was assessed by using the CDP Score that the company received by CDP (previously Climate Disclosure Project). The findings show that higher levels of climate change reporting is significantly related to board gender diversity, independent board member ratio, board size, commitment to the United Nations Sustainable Goal 13, external sustainability report auditing, financial exposure to physical risks, climate commercial risks, developed emission targets and are operating in certain sectors. This study employs instrumental variable fixed effect panel and ordered probit regression analyses. Our results were robust to various regression specifications and alternatives. The study used the extended ordered probit regression with endogenous treatment to account for potential endogeneity of independent board members by applying the two instrumental variables capturing the existence of a corporate governance board committee and the fact of executive compensation for long-term objectives using data from the LSG EIKON Reuters and CDP databases.
Presenters
Petra DillingAssociate Professor, School of Graduate Studies, SUNY Empire State University, New York, United States
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
KEYWORDS
BOARD STRUCTURE, GOVERNANCE, RESILIENCE, CANADA, ENDOGENEITY, CLIMATE CHANGE, GENDER DIVERSITY
