Thesis
Firm determinants and consequences of the voluntary adoption of task force on climate-related financial disclosures
- Creator
- Rights statement
- Awarding institution
- University of Strathclyde
- Date of award
- 2026
- Thesis identifier
- T18158
- Person Identifier (Local)
- 202294069
- Qualification Level
- Qualification Name
- Department, School or Faculty
- Abstract
- This PhD thesis, comprising three empirical chapters, examines the firm determinants and consequences of the Task Force on Climate-related Financial Disclosures (TCFD) compliance. Specifically, this thesis examines whether TCFD compliance is associated with improvements in corporate investment efficiency and investigates the association between environmental expertise, CEO characteristics, and TCFD compliance, using a global sample over the period 2017–2021. Despite the growing body of research on TCFD reporting, the existing literature primarily concentrates on documenting the extent of firms’ compliance without empirically examining the determinants of compliance. Moreover, limited attention has been directed toward examining the economic implications of TCFD compliance, particularly its influence on firms’ investment efficiency. Furthermore, little is known about the internal governance mechanisms that influence firms’ TCFD compliance (e.g., CEO power, environmental board committees). Therefore, the first empirical chapter examines the association between TCFD compliance and corporate investment efficiency. The second empirical chapter investigates the association between CEO power, CEO climate support and TCFD compliance. The third empirical chapter investigates the associations between environmental board committee presence, directors' environmental expertise, and TCFD compliance. The first chapter’s findings demonstrate that TCFD compliance is associated with improved investment efficiency. This result suggests that climate-related disclosure enhances information transparency and reduces information asymmetry between firms and investors. By providing clearer insights into climate risks and strategic responses, TCFD reporting appears to support more efficient capital allocation decisions and mitigate both overinvestment and underinvestment problems. The results also indicate that TCFD reporting contributes to improved financial stability through increased liquidity. This finding implies that climaterelated transparency reduces uncertainty surrounding firms’ exposure to climate risks, thereby improving market confidence. Further, the findings of the second chapter show that CEO power plays a complex role in shaping climate disclosure practices. While higher CEO power reduces the likelihood of TCFD compliance, it is associated with higher reporting quality among firms that do comply. This finding suggests that powerful CEOs may exercise discretion in deciding whether to engage with voluntary climate disclosure frameworks and exert greater control over the credibility and strategic framing of the information released. As such, CEO power may both constrain disclosure incentives and influence the depth and quality of reporting. Additionally, CEO climate support is positively associated with TCFD compliance, but does not fully mitigate the negative influence of CEO power on disclosure decisions. This finding highlights the persistence of managerial judgment in climate reporting and suggests that personal support for climate initiatives may encourage disclosure but cannot fully mitigate the effects of CEO power in decision-making. Finally, the third chapter demonstrates that corporate governance mechanisms also play a critical role in strengthening climate disclosure practices. The presence of environmental committees and board-level environmental expertise significantly enhances the likelihood of TCFD compliance. However, only environmental expertise appears to mitigate the negative effect of CEO power on disclosure decisions. This finding suggests that specialised knowledge within the board is essential for challenging managerial influence and effectively promoting climate transparency. Finally, the association between TCFD compliance and investment efficiency is particularly strong in firms with environmental governance structures. Overall, the findings of this thesis underscore the importance of regulatory frameworks and corporate governance mechanisms in shaping firms’ climate reporting behaviour and its economic consequences. Stronger regulatory environments, effective board oversight, and environmental expertise appear to play a critical role in limiting managerial discretion and enhancing the effectiveness of climate disclosure practices. These insights offer valuable guidance for regulators and policymakers aiming to enhance climate disclosure reforms and encourage more sustainable corporate governance practices.
- Advisor / supervisor
- Hass, Lars
- Hillier, David
- Resource Type
- DOI
Beziehungen
Objekte
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PDF of thesis T18158 | 2026-09-30 | Öffentlich | Herunterladen |