Global Warming Disclosures: Impact of Kyoto Protocol Across Countries

45 Pages Posted: 19 Dec 2010

See all articles by Martin Freedman

Martin Freedman

Towson University

Bikki Jaggi

Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick

Date Written: December 8, 2010

Abstract

The Kyoto Protocol that went into effect in February 2005 set limits on the amount of greenhouse gas (GHG) emissions. We document in this study that firms from countries ratifying the Protocol and setting limits on GHG emissions (i.e., European Union [EU] countries, Canada and Japan) are associated with higher GHG disclosures compared with firms in the United States, which has not ratified the Protocol. Additionally, we document that firms from India, which has not set any limits on GHG emissions, make even less GHG disclosures than firms from all other countries covered in this study. Our findings also show that GHG disclosures are greater for Canadian and Japanese firms compared with firms from the EU countries and that they also differ somewhat across EU firms. These findings suggest that ratification of the Protocol and limits on emissions improve pollution disclosures. In the absence of Protocol ratification, mandatory disclosure requirements may be needed to ensure adequate and reliable pollution disclosures.

Suggested Citation

Freedman, Martin and Jaggi, Bikki, Global Warming Disclosures: Impact of Kyoto Protocol Across Countries (December 8, 2010). Journal of International Financial Management & Accounting, Vol. 22, Issue 1, pp. 46-90, 2010, Available at SSRN: https://ssrn.com/abstract=1726963 or http://dx.doi.org/10.1111/j.1467-646X.2010.01045.x

Martin Freedman

Towson University ( email )

8000 York Road, ST 100A
Towson, MD 21204
United States

Bikki Jaggi

Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick ( email )

100B Rockafeller Road
Piscataway, NJ 08854
United States

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