Carbon media legitimacy in UK companies: actions or words?

Article


Rohani, A. and Jabbour, M. 2024. Carbon media legitimacy in UK companies: actions or words? Journal of Applied Accounting Research. 25 (2), pp. 298-324. https://doi.org/10.1108/JAAR-08-2022-0200
TypeArticle
TitleCarbon media legitimacy in UK companies: actions or words?
AuthorsRohani, A. and Jabbour, M.
Abstract

Purpose
This study investigates whether carbon media legitimacy is influenced by carbon performance and/or carbon disclosure using a direct measure of carbon media legitimacy in UK context.

Design/methodology/approach
To test this study's hypotheses, the authors employ Tobit regression analysis of 95 UK companies listed in FTSE350. The authors use balanced panel data (475 observations in total) to reduces the noise introduced by unit heterogeneity.

Findings
The authors find that while corporate carbon performance is not reflected in carbon media legitimacy, carbon media legitimacy is positively and significantly affected by voluntary carbon disclosure (irrespective of its quality). Thus, voluntary carbon disclosure is shown to be an effective tool in legitimising corporate activities.

Research limitations/implications
The results show a certain degree of naivety on the part of the media in assessing corporate carbon behaviour, since it values carbon disclosure (irrespective of its quality) more than carbon performance. Such media behaviour may hinder future improvement in carbon performance of firms.

Practical implications
This study's results indicate that the existing UK carbon disclosure policy does not address the heart of climate change and global warming. Thus, tougher regulations should be considered by policy-makers in relation to voluntary carbon disclosure in the UK.

Originality/value
To the best of the authors' knowledge, this is the first study to examine whether carbon media legitimacy is associated with both carbon performance and carbon disclosure using a direct measure of carbon media legitimacy, and to use the UK context when addressing this association. It also examines the effectiveness of quality of carbon disclosure as legitimation tool.

KeywordsCarbon performance; carbon disclosure; carbon media legitimacy; legitimacy theory
Sustainable Development Goals13 Climate action
Middlesex University ThemeSustainability
LanguageEnglish
PublisherEmerald
JournalJournal of Applied Accounting Research
ISSN0967-5426
Electronic1758-8855
Publication dates
Online05 Jul 2023
Print15 Mar 2024
Publication process dates
Submitted09 Aug 2022
Accepted09 Jun 2023
Deposited19 Apr 2024
Output statusPublished
Publisher's version
File Access Level
Restricted
Digital Object Identifier (DOI)https://doi.org/10.1108/JAAR-08-2022-0200
Web of Science identifierWOS:001021391900001
Permalink -

https://repository.mdx.ac.uk/item/9qvqq

Restricted files

Publisher's version

  • 11
    total views
  • 8
    total downloads
  • 5
    views this month
  • 0
    downloads this month

Export as

Related outputs

Stemming the tide: Does climate risk affect M&A performance?
Lodh, S., Deshmukh, N. and Rohani, A. 2024. Stemming the tide: Does climate risk affect M&A performance? Business Strategy and the Environment. 33 (2), pp. 858-881. https://doi.org/10.1002/bse.3518
Corporate incentives for obtaining higher level of carbon assurance: seeking legitimacy or improving performance?
Rohani, A., Jabbour, M. and Aliyu, S. 2023. Corporate incentives for obtaining higher level of carbon assurance: seeking legitimacy or improving performance? Journal of Applied Accounting Research. 24 (4), pp. 701-725. https://doi.org/10.1108/JAAR-03-2022-0055