Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies

This paper examines the effects of carbon emissions on accounting and market-based performance financial non-financial firms in emerging economies. Data for 104 328 constituting 2591 observations operating 22 economies were collected from Datastream database period 2011–2020. We applied OLS 2SLS regression techniques to analyze data. Results show that emit less than their counterparts. The results further reduce firms’ return equity, Tobin’s Q, Z-score, credit rating. Our findings remain robust different estimation alternative proxies performance. have some important policy implications