| dc.description.abstract | This thesis investigates the correlation between carbon emissions and firm
performance in an emerging market, aiming to comprehend the influence of carbon
emissions on financial indicators. Employing a quantitative approach, the study
examines data from a sample of 16,008 firms operating in 121 emerging market
countries. The baseline regression analyses, utilizing three distinct scaling methods,
consistently reveal a statistically significant and negative association between carbon
emissions and firm performance, as indicated by Return on Assets (ROA). The results
demonstrate that higher carbon emissions are linked to lower firm performance across
all scaling methods. Notably, this detrimental impact is more pronounced in larger firms
compared to their smaller counterparts. Furthermore, firms operating in jurisdictions
with stronger legal frameworks experience a relatively moderated negative effect of
carbon emissions on their performance, in contrast to those operating in weaker legal
environments. These findings emphasize the crucial role of considering carbon
emissions as a significant factor influencing firm performance in emerging markets. In
terms of future research implications, there is a need for further exploration of
mechanisms to mitigate the adverse consequences of carbon emissions on firm
performance and to identify strategies for fostering sustainable growth in emerging
markets | en_US |
