Does carbon-conscious behavior drive firm performance?: An event study on the Global 500 companies

Cover......Page 1
Does carbon-conscious behavior\rdrive firm performance?......Page 4
ISBN 9783834929648......Page 5
Foreword......Page 8
Acknowledgements......Page 10
TABLE OF CONTENTS......Page 12
List of abbreviations......Page 16
Table of symbols......Page 20
Index of figures......Page 22
Index of tables......Page 24
1.1.1 Description 01environmental challenges posed by climate change......Page 26
1.1.1.1 RelaUonlblp betweeDhuman behavior and lDueued CQz......Page 27
1.1.1.2 Relationship between CO] increase and temperature rise......Page 31
1.1.1.3 Relationship between increased temperature and global climate......Page 34
1.1.1.4 Climate change and its consequences for mankind......Page 40
1.1.2 Reaction 01 consumers and policy mak.ers to environmental challenges......Page 48
1.1.3 Implications of climate change for corporate leaders and investors......Page 50
1.2 OUTLINE OF TIIE STUDY......Page 52
2.1.1.1 Socio-political theories......Page 55
2.1.2 Empirical perspective......Page 64
2.2.1.1 Traditionalist view......Page 66
2.2.1.2 Revisionist view......Page 67
2.2.1.3 Synthesis of traditionalist and revisionist views......Page 70
2.2.2 Empirical perspective......Page 71
2.3 SUMMARY AND NEW APPROACH TO THEORETICAL FRAMEWORK......Page 76
3.1 SUSTAINABILITY......Page 79
3.3 ENVIRONMENT......Page 81
3.4 GREEN MANAGEMENT AND CARBON-CONSCIOUS BERAVIOR......Page 83
3.5 CORPORATE SUCCESS......Page 86
3.6 EVENT STUDY......Page 88
4.1 THE CARBON DISCLOSURE PROJECT AS AN ORGANIZATION......Page 89
4.2.1 Global 500, response rates and C02 emissions covered......Page 91
4.2.2 Carbon disclo.ure score......Page 93
4.2.3 Carbon performance score......Page 95
4.2.4 Geographie and indnstry overview......Page 97
4.3 CRITIQUE OF THE CARBON DISCLOSURE PROJECT......Page 100
5.1 RESEARCH QUESTIONS ON CDP ACTIVITY......Page 102
5.3 MODEL SETUP......Page 104
5.4 PREDICTED RESEARCH OUTCOME BASED ON THEORIES AND HYPOTHESIS DEVELOPMENT......Page 108
6.1 RESEARCH APPROACH......Page 112
6.1.2 Assumptions 01event study......Page 114
6.1.4 Selection of companies......Page 115
6.1.5 Event and estimation window......Page 116
6.1.6 Correction for confounding events......Page 117
6.1.7 Estimation uf abnormal returns......Page 118
6.1.8.1 Statistical models......Page 120
6.1.8.2 Economic models......Page 125
6.1.9 Benchmarks......Page 126
6.1.10 Statistical testing methods......Page 127
6.1.10.1 T-test for significance of abnormalreturns......Page 128
6.1.10.2 T-test for equaIity of abnormal returns......Page 132
6.1.10.3 Non-parametric tests......Page 133
6.2 DATA COLLECTION......Page 135
6.3 CRITIQUE OF EVENT STUDIES......Page 136
6.4 SUMMARY......Page 137
7.1 REGIONAL AND INDUSTRIAL SEGMENTATION OF GLOBAL 500......Page 138
7.2 BREAKDOWN OF GLOBAL 500 DATA SET INTO RELEVANT SAMPLE......Page 139
7.4 FURTHER CHARACTERISTICS OF THE SAMPLE......Page 140
8.1 IMPACT OF CDP PARTICIPATION ON FINANCIAL PERFORMANCE......Page 145
8.2 IMPACT OF MEMBERSHIP IN CARBON DISCLOSURE LEADERSHIP INDEX ON FINANCIAL PERFORMANCE......Page 149
8.3 IMPACT OF CARBON PERFORMANCE AWARD ON FINANCIAL PERFORMANCE......Page 153
8.4 IMPACT OF SETTING CO2 REDUCTION TARGETS ON FINANCIAL PERFORMANCE......Page 154
8.5 IMPACT ON FINANCIAL PERFORMANCE OF HAVING A BOARD LEVELMEMBERRESPONSIBLE FOR CLIMATE CHANGE......Page 156
8.6 IMPACT ON FINANCIAL PERFORMANCE OF HAVING AN INCENTIVESYSTEM TO SUPPORT CLIMATE-FRIENDLY BEHAVIOR......Page 159
9.1 MAJOR FINDINGS......Page 162
9.2 MANAGERIAL IMPLICATIONS......Page 164
9.3 LIMITATIONS OF THE STUDY......Page 165
9.4 SUGGESTIONS FOR FURTHER RESEARCH......Page 166
Appendix......Page 167
Reference List......Page 176