Morrison, E.A., Adegbite, Emmanuel, Mangena, Musa, Kimani, Danson, and Adu, Douglas A. (2025) The Benefits of Being Greener: Unravelling the Association Between Carbon Performance and Market Value. Business Strategy and the Environment, 34. pp. 4928-4957.

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Abstract

This study examines the interrelations among pay incentives, board sustainability committee initiative, carbon performance, and market value. Using data from listed firms in emerging economies, we find that pay incentives and board sustainability committee initiative increase the firms’ process-based carbon performance but have no similar effect on outcome-based carbon performance. We detect that board sustainability committee initiative has a positive moderating effect on the association between pay incentives and outcome-based carbon performance. We also find that higher level of process-based carbon performance is associated with low market value, but outcome-based carbon performance does not seem to impact on market value. Accordingly, two factors – namely, enhanced board sustainability committee initiatives and increased process-based carbon performance – are found to be channels through which carbon performance affects market value. Our findings call for firms, practitioners and policymakers to design and implement effective board sustainability committee initiative and pay incentive mechanisms to improve actual carbon performance.

Item ID:	86050
Item Type:	Article (Research - C1)
ISSN:	1099-0836
Copyright Information:	This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. © 2025 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd.
Date Deposited:	07 Jul 2025 23:21
FoR Codes:	41 ENVIRONMENTAL SCIENCES > 4104 Environmental management > 410404 Environmental management @ 25% 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350201 Environment and climate finance @ 50% 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350107 Sustainability accounting and reporting @ 25%
SEO Codes:	15 ECONOMIC FRAMEWORK > 1503 Management and productivity > 150302 Management @ 100%
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