ARTICLE
Does a Customer Focus Influence Firms’ Climate-Change Reporting Decisions? The Role of Market-Driven Corporate Culture
Sudipta Bose,
Steven F. Cahan,
Sandip Dhole,
Sagarika Mishra,
Sudipta Bose
Department of Accounting and Finance, University of Newcastle, Sydney, New South Wales, Australia
Search for more papers by this authorCorresponding Author
Steven F. Cahan
Department of Accounting and Finance, University of Auckland, Auckland, New Zealand
Correspondence: Steven F. Cahan ([email protected])
Search for more papers by this authorSandip Dhole
Department of Accounting, Monash Business School, Monash University, Melbourne, Victoria, Australia
Search for more papers by this authorSagarika Mishra
Department of Finance, Deakin Business School, Deakin University, Melbourne, Victoria, Australia
Search for more papers by this authorSudipta Bose,
Steven F. Cahan,
Sandip Dhole,
Sagarika Mishra,
Sudipta Bose
Department of Accounting and Finance, University of Newcastle, Sydney, New South Wales, Australia
Search for more papers by this authorCorresponding Author
Steven F. Cahan
Department of Accounting and Finance, University of Auckland, Auckland, New Zealand
Correspondence: Steven F. Cahan ([email protected])
Search for more papers by this authorSandip Dhole
Department of Accounting, Monash Business School, Monash University, Melbourne, Victoria, Australia
Search for more papers by this authorSagarika Mishra
Department of Finance, Deakin Business School, Deakin University, Melbourne, Victoria, Australia
Search for more papers by this authorFirst published: 27 November 2024
ABSTRACT
While there is increasing investor demand for climate-change disclosures, less is known about how a firm's culture influences its decision to provide these disclosures. In this study, we focus on market-driven or customer-focused culture. We expect that firms with a market-driven culture (MDC) will be more likely to provide climate-change disclosures because such firms are more customer-oriented. Our results are consistent with this expectation. We also find that the level of carbon emissions is negatively associated with MDC, suggesting that the climate-change disclosures are not merely greenwash. Further, we find firm value is higher for MDC firms that provide climate-change disclosures. Overall, we contribute to the literature by identifying MDC as an important determinant of climate-change disclosure.
Open Research
Data Availability Statement
The data that support the findings of this study are available from the corresponding author upon reasonable request.
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