Can board climate-responsible orientation improve corporate carbon performance? The moderating role of board carbon awareness and firm reputation

Xia, Mengyao, Cai, Huifen (Helen) ORCID logoORCID: and Yuan, Qiong (2022) Can board climate-responsible orientation improve corporate carbon performance? The moderating role of board carbon awareness and firm reputation. Frontiers in Environmental Science, 10 , 1043325. pp. 1-19. ISSN 2296-665X [Article] (doi:10.3389/fenvs.2022.1043325)

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Overwhelming evidence from prior research suggests the functions of the board of directors have a vital influence on carbon performance. However, very little is known about the moderating effect of board functions. This study attempts to fill this gap by developing and empirically testing a conceptual model that highlights the role of board carbon awareness and firm reputation in the relationship between board climate-responsible orientation (BCO) and carbon performance. Using a fixed effect model to analyze data from 665 US listed firms covering a period of 2010–2019, we find that BCO and carbon performance show a U-shaped non-linear relationship. Increased experience of BCO improves corporate carbon performance. The results also provide evidence of the moderating effect of carbon awareness and firm reputation on the relationship between BCO and carbon performance. Carbon awareness reduces symbolic emission reduction actions in carbon management, while, firm reputation will cause symbolic emission reduction actions. Besides, splitting the sample according to firm size and carbon dependency shows BCO has a better effect on the carbon performance of small or medium-sized and high carbon-dependency firms. The findings have important implications for managers to use firm governance mechanisms to improve carbon performance.

Item Type: Article
Sustainable Development Goals:
Keywords (uncontrolled): board climate-responsible orientation, carbon awareness, firm reputation, carbon performance, agency theory, resource dependence theory, legitimacy theory
Research Areas: A. > Business School
Item ID: 36910
Notes on copyright: COPYRIGHT © 2022 Xia, Cai and Yuan. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms
Depositing User: Jisc Publications Router
Date Deposited: 09 Dec 2022 11:10
Last Modified: 13 Dec 2022 22:47

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