The Impact of Changes in Carbon Emissions on Firm Value: ‎Focusing on Voluntary Disclosure of Water Resources

  • Authors

    • Suyon Kim RoadTech, South Korea
    https://doi.org/10.14419/n52es715

    Received date: August 24, 2025

    Accepted date: October 1, 2025

    Published date: November 3, 2025

  • Changes in Carbon Emissions; Firm Value; Voluntary Disclosure of Water Resource

  • Abstract

    This study investigates how changes in carbon emissions influence firm value and the extent to which voluntary water resource disclosure ‎moderates this relationship. Analyzing a sample of 702 South Korean listed firms from 2017 to 2021, increases in carbon emissions are ‎negatively associated with firm value, signaling to the market potential operational inefficiencies or heightened regulatory risk in a carbon-constrained economy. More critically, our findings reveal a significant moderating effect of voluntary water disclosure. This suggests that ‎transparent water reporting allows firms to contextualize their carbon performance, mitigating the adverse valuation impact of rising ‎emissions by signaling a holistic commitment to environmental responsibility. From a signaling theory perspective, this integrated ‎transparency reframes investor perceptions, transforming isolated emission concerns into components of a broader, more credible ‎sustainability narrative, thereby reinforcing stakeholder trust and offering a strategic pathway to enhancing firm value amidst environmental ‎challenges‎.

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  • How to Cite

    Kim, S. (2025). The Impact of Changes in Carbon Emissions on Firm Value: ‎Focusing on Voluntary Disclosure of Water Resources. International Journal of Accounting and Economics Studies, 12(7), 37-42. https://doi.org/10.14419/n52es715