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The Environmental-Financial Nexus: Centralized Environmental Monitoring, Eco-consciousness, and Green Revenues

Tracks
Crystal 2
Tuesday, July 2, 2024
8:45 AM - 9:00 AM

Presenter

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Dr June Cao
Senior Lecturer
Curtin University

The Environmental-Financial Nexus: Centralized Environmental Monitoring, Eco-consciousness, and Green Revenues

Biography

June is a senior lecturer in accounting. June’s core research focus is the burgeoning areas such as carbon accounting, carbon disclosure/assurance, green innovations, ESG/CSR, and the cutting edge of sustainability reporting and green supply chain management. Her commitment to research excellence is evidenced by high-quality impactful research outputs published in A*/A/Q1 journals such as the British Accounting Review, Energy Economics, Journal of International Accounting Research, International Journal of Auditing, Journal of Accounting Literature, Accounting and Finance, Issues in Accounting Education, Journal of Financial Stability, and among others. Her research performance and teaching excellence have been recognized by several prestigious research and teaching accolades. She is a member of CPA Australia, CA ANZ, and AFAANZ Technical Committee, a fellow of the Higher Education Academy (FHEA) and an associate fellow of Curtin Academy. She is also an accredited PREP reviewer and FHEA assessor/mentor. She is on the Editorial Advisory Board of the Journal of Accounting Literature and the lead guest editor of the Pacific Accounting Review.
Ms Millie Liew
Doctoral Candidate
Curtin University

The Environmental-Financial Nexus: Centralized Environmental Monitoring, Eco-consciousness, and Green Revenues

Abstract

Amid tightening environmental governance, we aim to shed light on how firms’ eco-consciousness can lead to a harmonious balance between environmental and economic performance in the form of green revenues. We utilize China’s centralization of environmental monitoring in 2015 as the basis for a difference-in-differences methodology, using highly and less eco-conscious firms as the treatment and control groups. We find that relative to less eco-conscious firms, highly eco-conscious firms derive greater green revenues post-centralization. This finding is robust to underlying firm characteristics and unobservable industry- and time-specific heterogeneity. We find that the effect on highly eco-conscious firms’ green revenues is facilitated by regional internet infrastructure development and corporate greenwashing mitigation, suggesting that effective centralized monitoring relies on an integrated information transmission network and an improvement in firms’ genuine environmental accountability. Overall, eco-consciousness facilitates a win-win scenario between environmental and economic performance under an increasingly strict environmental regulatory landscape.

Biography

Millie Liew is a Ph.D. candidate in Accounting at Curtin University, Western Australia. Her research focuses on corporate governance, CSR/ESG, non-financial disclosures, and management accounting. She is particularly interested in contributing to the resolution of contemporary societal issues through an interdisciplinary approach. Zijie Huang is a Ph.D. candidate in Accounting at Curtin University, Western Australia. Zijie’s research realms include sustainability accounting, environmental and climate accounting, corporate governance, and ESG/CSR. Zijie applies sophisticated theories from Accounting, Economics, and Management to tackle accounting issues. His research path is marked by a commitment to using advanced econometric and bibliometric methods for undertaking quantitative accounting research.

Chair

Jennifer Zhao
Phd Candidate
The University of Western Australia

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