The Moderating Role of Internal Control on The Relationshipbetween Carbon Disclosure ‎Quality and Corporate Economic Value: Based on Chinese Listed Companies

  • Authors

    • Weiqin Liu School of Distance Education, Universiti Sains ‎Malaysia, Minden, Penang, Malaysia and School of Business, Shaoguan University, Shaoguan, ‎Guangdong, China https://orcid.org/0009-0007-5031-6440
    • Zulnaidi Yaacob School of Distance Education, Universiti Sains ‎Malaysia, Minden, Penang, Malaysia and School of Distance Education, Universiti Sains ‎Malaysia, Minden, Penang, Malaysia https://orcid.org/0000-0002-1222-1949
    https://doi.org/10.14419/tpra3604

    Received date: July 27, 2025

    Accepted date: October 7, 2025

    Published date: October 14, 2025

  • Carbon Disclosure Quality; Corporate Economic Value; Internal Control; Chinese Listed Companies, ‎Fixed Effects Model

  • Abstract

    Sustainable value creation has become an important goal for modern corporations. Among the key ‎drivers, carbon disclosure quality (CDQ) has received growing attention. However, existing ‎studies report mixed results on its impact on corporate economic value (CEV). In addition, little is ‎known about the role of internal control (IC) in this relationship. This study investigates the effect ‎of CDQ on CEV and examines whether IC strengthens this link. It uses panel data from A-share ‎listed companies in China, covering the period from 2010 to 2023. A fixed effects regression model ‎is applied to control for unobserved firm-level heterogeneity. The findings show that higher CDQ ‎is associated with improved CEV. Moreover, an effective IC enhances this positive relationship. These ‎results suggest that internal governance mechanisms can help firms translate carbon disclosure into ‎economic value. Further analysis shows that the effect of CDQ varies across firm types. The ‎positive impact is more evident in non-heavily polluting industries, non-state-owned enterprises, ‎and companies not audited by Big Four accounting firms. This study contributes to the literature on ‎corporate sustainability. It highlights how disclosure quality and internal governance jointly ‎influence firm value under different organizational contexts‎.

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    Liu, W., & Yaacob, Z. (2025). The Moderating Role of Internal Control on The Relationshipbetween Carbon Disclosure ‎Quality and Corporate Economic Value: Based on Chinese Listed Companies. International Journal of Accounting and Economics Studies, 12(6), 530-543. https://doi.org/10.14419/tpra3604