Climate Accounting and Corporate Contributions to Fiscal Sustainability in Emerging Economies
Keywords:
Emission; Energy; Taxation; SustainabilityAbstract
Objectives: This study sought to provide empirical evidence of effect of environmental performance on the contribution of manufacturing firms to fiscal sustainability in South Africa and Nigeria and why it is significant to comprehend this relationship in developing economies that want to not only have accountable environmental activities, but also have predictable levels of revenue to the government. Prior Work: Prior studies have mostly investigated the terms environmental disclosure, environmental performance or sustainability reporting and their relationship with the value of firms or governance performance. But little has been done on the impacts of corporate practices related to climate on the real fiscal contributions in terms of taxes on a firm level. Approach: The analysis applies quantitative econometric methods such as descriptive statistics, regression modelling and robustness estimation. Results: The results indicate that climate accounting indicators have an adverse effect on corporate tax contributions while firm size and economic growth have positive influence. Implications: The findings indicate the significance of considering the environmental accountability alongside fiscal policy to policymakers, regulators and company managers. Value: The article offers new firm-level data of the connection between climate accounting practices and financial sustainability in the form of corporate tax payments.
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