Issues in Carbon Emission of Agency Theory - Myassignmenthelp.Com

Question: Discuss about the Issues in Carbon Emission of Agency Theory. Answer: Introduction It is discerned that in general there are several issues which relates to global warming and its consequence on environment and economy. This particular consideration is seen with the uniformity of United Nation Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. The important agreements to address the global warming are taken into account with reducing the disclosures pertaining to the GHG emission. The study will consider the practical motivation and the importance of this practice. The important aspects of the study will state the theoretical motivation which will address the gaps in the existing research study. Some of the other aspects of the study is able to depict the relationship between the identified practical and theoretical motivational factors. The part of the study is able to evaluate the hypothesis which as related to the selected areas of learning (Golosov et al. 2014). Practical Motivation The important form of the effect of the carbon emission is based on its impact on general public. There are many organisations which offers the footprint calculators for public and corporate use for depiction of carbon footprints of products. This particular consideration is seen to be important for both accountants public in general. As per the number of previous articles which are seen to be published by US Environmental Protection Agency these are addressed with several issues pertaining to paper, plastic (candy wrappers), glass, cans, computers, carpet and tires (Liao, Luo and Tang 2015). In Australia the regulators and the managers pertaining to this consideration has been able to contribute to the number of issues related to the matters of lumber and other building materials. Several companies and non-profit making academics have been able to address number of issues pertaining to mailing letters and packages. In several types of the other cases the main form of the initiatives is related to introducing CO2 label on the products. This particular initiative was takin in Marc h 2007 by the UK manufacturers on foods, shirts and detergents. The evaluation of the packages in the several types of the other incidences are seen to be addressed as per the actively participating with the Carbon Trust state (Rodrik 2014). The evaluation of the significant nature of the other packages are taken into account with the number of the factors which are related to carbon footprint. These considerations has highlighted number of the factors which are seen to be taken into account with using aseptic carton and aluminium to prevent the impacts of carbon footprints in the environment (Hale and Roger 2014). Theoretical Motivation In general, there are different types the of other theories which are seen to be related to address the theories associated to carbon footprint. Some of the different types of the specific theories for the carbon footprint are taken into account with investigating impact of the carbon risk management and disclosure of the same with non-investor stakeholders. The quality of the carbon climate change disclosers is seen to be related to the specific aspects of implementing quality of the climate change disclosures. This particular factor is seen to be related to the disaggregated carbon risk management and the different types of the disclosure which are made from the scores of the other sources. There have been significantly less associated factors for the carbon risk management and ex-ante cost of equity capital and market value. It has been also discerned that carbon emissions do not provide any additional information on the non-investor stakeholders over and above carbon risk managem ent. As per the findings of the previous study the carbon risk management of the research study refers to performance of the firm with respect to the carbon emissions and climate change (Kalu, Buang and Aliagha 2016). It needs to be also discerned that the significant factors taken into account for the carbon emissions are seen to be evident with the consideration of the number of factors considered with the firms efficiency and effectiveness in managing these issues. Several types of the other aspect of the study are associated to minimise the risks and focus more on the opportunities. The important purpose of this study has been able to discuss on the firms carbon risk management and climate change performance. Previous research investigations have been able to discuss the potential issues associated to the climate change disclosures. These factors are seen to be taken into consideration with the discussion of the company size, leverage, profitability, shareholder resolutions, regulatory threats, economic consequences and institutional investor engagement (Ben-Amar, Chang and McIlkenny 2017). Literature Review Carbon footprint is defined as the overall set of the greenhouse emissions which is caused by an individual, product and event. The measure of the carbon footprint is able to consider the total amount of the emission of carbon dioxide (CO2) and methane (CH4). The Greenhouse gases (GHGs) in general are taken into account with the production, consumption of food, fuels, manufactured goods, materials, wood and land clearance (Grosjean et al. 2016). Agency theory is defined as the relationship between agents and principals in business. This theory has been further seen to be concerned with the unalignment of the goals or different aversion levels of the risk (Zhang, Zhou and Kung 2015). The first study of the literature review has been able to discuss the relationship between environmental performance and disclosures pertaining to the topical type of environmental performance. The learning related to this has considered disaggregated scores analyses thereby revealing the role of particular carbon risk management practices. The historical carbon risk management is seen with the measurement of the significant factors which has enumerated the carbon emissions intensity and the actual emission. The advantage of this study has been able to depict the key performance indicators. The limitation for this seen with less information available (Rehmatulla and Smith 2015). Some of the other learnings have identified the connection between carbon risk management and the quality of carbon disclosure. Carbon disclosure project states on the areas to measure and manage the environmental impacts. The main advantage of this literature has identified the most comprehensive collection of self-reported environmental data in the world. The limitation for this is seen to be identified with the cost constraints for the devices required for reporting on the quality of carbon disclosures (Geels 2014). The measurement of the carbon footprint has been able to quantify the carbon content with the relevant portfolio for allocating the carbon emissions of a company. The traditional portfolio analysis allows the investors to assess the investors to state the reasons related to address the low carbon footprint. This is mainly due to the underweighted carbon intensive sectors (Amran, Periasamy and Zulkafli 2014). Hypotheses There will be two theoretical aspects explained for the non-financial and financial disclosures phenomenon. These theories are will be classified with the socio-political theories and economic-based disclosures. The considerations for the socio-political theories has been able to assume the disclosure behaviour with the function of political pressure and social stakeholders. The legitimacy theory is seen to operate within the standards and the norms which is considered with the social contract. The investigation and the determinants from the corporate responses are addressed with the CDP questionnaires and the type of information considered in the responses. The hypothesis statement will be able to address disagreement with the quality of the disclosures. The solicit political theories are based on the assumptions to improve the environmental performance with higher quality of environmental disclosure. The first hypothesis will be able to provide the relationship between carbon risk management and the quality of carbon disclosure. The second hypothesis has ascertained the association between CSR and accounting performance as per the agency theory. The hypothesis formulated for the research study are listed below as follows: Null Hypothesis (H01): There does not exist a positive relationship between carbon risk management and the quality of carbon disclosure Alternative Hypothesis (H1): There does exists a positive relationship between carbon risk management and the quality of carbon disclosure Null Hypothesis (H02): There does not exist a positive relationship for CSR and accounting performance which is based on agency theory Alternative Hypothesis (H2): There exists a positive relationship for CSR and accounting performance which is based on agency theory Conclusion As per the practical motivation discussion there has been number of previous article which are seen to be published by US Environmental Protection Agency which has addressed several issues pertaining to the use of paper, plastic (candy wrappers), glass, cans, computers, carpet and tires. Several companies and non-profit making academics have been able to address issues pertaining to mailing letters and packages. The theoretical motivation has discerned specific theories for the carbon footprint which are taken into account with investigating impact of the carbon risk management and disclosure of the same with the non-investor stakeholders. The quality of the carbon climate change disclosers is seen to be related to the specific aspects of implementing quality of the climate schange. disclosures. The hypothesis of the study will be able to determine relationship between carbon risk management and the quality of carbon disclosure and relationship for CSR and accounting performance whic h is based on agency theory. Reference Amran, A., Periasamy, V. and Zulkafli, A.H., 2014. Determinants of climate change disclosure by developed and emerging countries in Asia Pacific.Sustainable Development,22(3), pp.188-204. Ben-Amar, W., Chang, M. and McIlkenny, P., 2017. 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