CORPORATE GOVERNANCE AND CARBON TRANSPARENCY: A SRI LANKAN STUDY

Abstract

Corporate governance is now becoming hot topic due to globalization of businesses which has received considerable attention especially after corporate scandals and financial crises. It is acknowledged to play a major role in management of organizations in both developed and developing countries. At the same time, Carbon transparency is increasingly becoming popular nowadays due to the increased environmental concerns of the corporates. It implies that corporate social performance along with Carbon transparency defines the success of organizations which can be controlled by corporate governance. This study examined the impact of corporate governance on Carbon transparency in the case of selected listed companies in Sri Lanka. For the purpose of the study, data is collected from 287 listed companies based on the availability of annual reports for the period from 2018/19. To investigate the impact of corporate governance on carbon transparency, regression analysis is used and correlation analysis is carried out to find out the relationship between corporate governance and carbon transparency. The results show that board diversity and board independence have the significant impact on carbon transparency. Further, board diversity and board independence significantly correlated with carbon transparency. Rather than that board size, board meeting, managerial ownership and environmental committee shows an insignificant impact on carbon transparency.