Abstract:
The purpose of this study is to examine the relationship between managers' ability and voluntary disclosure of carbon emissions and whether industry competition affects those relationships. Using Korean firms listed on the Korean stock market from 2008 to 2019, we find that high-ability managers are likely to disclose environmental information on carbon emissions voluntarily. Moreover, when high-ability managers are in a highly competitive industry, they voluntarily disclose carbon emissions information. This means that high-ability managers actively using disclosure to inform the market about their abilities. Furthermore, high-ability managers are expected to disclose qualitative information based on their specialized knowledge and information-processing ability.
