The Effect of Carbon Disclosure Project on Financial Performance: Empirical Evidence from India

Abstract

The study attempts to test the impact of carbon disclosure projects on financial performance. Data has been gathered from the National Stock Exchange and Bombay Stock Exchange of the listed companies. EViews software has been adopted to apply correlation and multi-linear regression. The findings indicate that carbon disclosure project produces a positive impact on financial performance. Financial performance is an independent variable which consists of five variables under the independent variable such as return on equity, return on asset, liquidity ratio, solvency ratio and market ratio. The carbon disclosure project is a dependent variable. The study’s conclusions provide with companies’ information and guidance on how to implement carbon disclosure projects and business responsibility and sustainability reporting and how it is directly related to business performance. The results of this study could assist shareholders in making investment decisions and in deciding how to establish a carbon disclosure projects program in their business.