Martin Freedman - Academia.edu (original) (raw)

Papers by Martin Freedman

Advances in Accounting, Dec 1, 2011

Sustainability Accounting, Management and Policy Journal

PurposeAs more companies choose to disclose corporate social responsibility (CSR) information, it... more PurposeAs more companies choose to disclose corporate social responsibility (CSR) information, it is important to gain an understanding of the quality of disclosures and factors that influence quality. The purpose of this study is to examine the role of culture as a determinant of the quality of voluntary carbon emission disclosures.Design/methodology/approachThis study uses regression analysis to test the influence of culture on the quality of carbon disclosures. The sample of this study comes from companies who voluntarily report to the carbon disclosure project. The authors operationalize the quality of disclosure using the Carbon Disclosure Leadership Index. The authors operationalize cultural values using both Hofstede’s metrics (Hofstede, 1980) and Project GLOBE (House et al., 2004).FindingsThis study predicts and finds a negative relationship between quality of disclosure and high individualism scores. This study also finds that the quality of disclosure is lower for companie...

Journal of Cleaner Production, 2023

Proceedings of the International Association for Business and Society, Jul 1, 2007

ABSTRACT This research concerns accountability by companies in the U.S. electric utility industry... more ABSTRACT This research concerns accountability by companies in the U.S. electric utility industry for the financial impacts of cap‐and‐trade emissions allowance activity. We report findings from an extensive examination of disclosure practices for more than 100 facilities that were required to curb pollutant discharges and participate in a government‐mandated emission permits distribution and trading program. We can report conclusions from this empirical analysis in two domains of interest. With respect to the actual focus of the cap‐and‐trade program, this study shows that sulfur dioxide emissions have been reduced (whether the replaced command‐and‐control system would have been as effective in this connection is not possible to determine) and that firms have been able to delay implementation of costly pollution‐control technology by acquiring allowances. As regards the financial accounting and reporting for this activity, it is not known what the real cost to the firms was for using allowances since little disclosure regarding these costs has been made available publicly. It appears that there is little or no accountability concerning a key element of the cap‐and‐trade program.

International Journal of Critical Accounting, 2012

In 2005, the European Union instituted the first phase of the Kyoto Protocol by implementing a ca... more In 2005, the European Union instituted the first phase of the Kyoto Protocol by implementing a carbon allocation scheme (cap and trade) to reduce greenhouse gas (GHG) emissions. Prior to 2005, the Scandinavian countries had imposed a carbon tax to reduce carbon emissions. In this study, the EU experience with cap and trade and carbon taxes is compared concluding that neither endeavour was particularly successful in reducing GHG emissions. Disclosures made by firms that were impacted by the GHG emission reduction schemes are then examined. After controlling for size and industry group, firms from the UK and firms that just participated in cap and trade made significantly greater disclosures.

Challenge: The Magazine of Economic Affairs, Jul 1, 1983

Advances in Public Interest Accounting, May 17, 2019

The United States Securities and Exchange Commission (SEC) issued an interpretative release osten... more The United States Securities and Exchange Commission (SEC) issued an interpretative release ostensibly mandating the disclosure of the impact that climate change may have on the registrant. One means of enforcement for this release is through the use of comment letters. Prior empirical studies have supported the argument that the SEC oversight through issuing comment letters is effective in enhancing the quality of firms’ disclosures (Asthana & Boone, 2009; Johnston & Petacchi, 2017). With a total of 27 comment letter cases (34 comments based on the topics) regarding climate change disclosure, we do not find clear evidence strongly supporting that the SEC implements its oversight process through systematic procedures and that SEC comment letters enhance the quality of firms’ climate change disclosure. Although some firms responded to the comments proactively, qualitative analysis reveals that the firm’s revisions were not sufficient to provide useful information for market participants in general. The overall finding suggests that the current oversight mechanism for climate change disclosure needs to be significantly improved to enhance the quality of firms’ climate change disclosure.

International journal of business and social research, 2015

The second phase of the Kyoto Protocol began in 2008. European nations had committed to reduce gr... more The second phase of the Kyoto Protocol began in 2008. European nations had committed to reduce greenhouse gases (GHG) by an average of 8 percent from the base year 1990 by the end of 2012. A little less than half of the actual reduction in GHG emissions was achieved by implementing a market-based cap and trade mechanism. In this paper we evaluate the effectiveness of cap and trade as the preferred method for reducing carbon emissions. To do this, an examination is made of emissions for 14 European countries that are the largest GHG emitters in Europe. We conclude that using cap and trade in combination with other measures that reduce GHG emissions led to the EU achieving its Kyoto Protocol goals.

Journal of Cleaner Production, 2019

This is a PDF file of an article that has undergone enhancements after acceptance, such as the ad... more This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.

Business Strategy and the Environment, 2018

The study examines the interplay among corporate carbon risk, voluntary disclosure, and cost of c... more The study examines the interplay among corporate carbon risk, voluntary disclosure, and cost of capital within the context of South Africa, a “rising power” in the climate policy debate. We develop a system of simultaneous equations models and analyze data drawn from firms traded on the Johannesburg Securities Exchange (JSE), for the period 2010 to 2015, using the three‐stage least squares procedure. We find that voluntary carbon disclosure is associated with lower overall (and equity) cost of capital, after controlling for corporate carbon risk. We also find that firms with higher carbon risk tend to provide better quality carbon disclosure and signal the possibility of high carbon risk to avoid negative market reactions resulting from concealing carbon information. Although the capital market does not appear to incorporate individual firm's carbon risk exposure into the required cost of capital, we find that it generally requires higher returns for companies operating in carbo...

Advances in Public Interest Accounting

ABSTRACT This research investigates whether authoritative guidance regarding financial statement ... more ABSTRACT This research investigates whether authoritative guidance regarding financial statement disclosures is incorporated into practice as envisioned by the promulgating body. Such assimilation is important from the standpoint of corporate accountability reporting as well as development of greater transparency in the extant accounting model. Specifically, we empirically test whether American Institute of Certified Public Accountants Statement of Position 96-1 led to improved reporting of environmental remediation costs and liabilities.A repeated-measures design was used to assess the level of disclosure by 126 large U.S. firms, each of which had been identified by the Environmental Protection Agency as being potentially responsible for the cost of cleanup efforts at multiple Superfund sites. By performing a content analysis of the pre- and post-issuance annual reports of these companies, a disclosure score was derived for each. Comparison of disclosures in the two fiscal periods following the effective date of this new guidance with the pre-issuance reporting shows no overall enhancement or improvement in either the level or quality of disclosures. We conclude that when viewed from the perspective of the two years subsequent to its effective date the promulgation of this additional authoritative reporting and display guidance did not attain the espoused objective.

Accounting and the Public Interest, 2008

The Toxics Release Inventory (TRI), published annually by the U.S. Environmental Protection Agenc... more The Toxics Release Inventory (TRI), published annually by the U.S. Environmental Protection Agency, contains a rich collection of data about hazardous chemical emissions of American industrial facilities. Mandated by the Emergency Planning and Community Right-to-Know Act of 1986, the TRI is a novel attempt at stimulating pollution control through self-reported disclosure of environmental degradation activities. TRI data are collected and reported at the level of the emitting plant. For each reporting location, information is given by chemical type. This study attempts to determine whether mandated TRI disclosures are carried over to financial reports and other publicly available sources of information about the firm's performance. We examined disclosures of the 200 highest-volume emitters of toxic chemical wastes for 2002 and found no correlation between the level of such releases—as reported in the TRI—and extensiveness of company reporting in non-TRI sources. Separately, we te...

La place de la dimension européenne dans la Comptabilité Contrôle Audit, May 27, 2009

In this study, we examine three potential explanations for the corporate choice to disclose envir... more In this study, we examine three potential explanations for the corporate choice to disclose environmental capital spending amounts. We investigate, first, whether the disclosure appears to be a function of the materiality of the spending and we find that, for the overwhelming majority of observations, the disclosed amounts are not quantitatively material. This suggests that non-disclosure is likely due to immateriality. We next attempt to differentiate the choice to disclose across voluntary disclosure theory and legitimacy theory arguments. Our findings show that disclosing firms do not exhibit improved subsequent environmental performance relative to non-disclosing companies. Further, controlling for firm size and industry class, we find the choice to disclose is associated with worse environmental performance. Overall, our results suggest that companies use the disclosure of environmental capital spending as a strategic tool to address their exposures to political and regulatory concerns.

This case has been used in the classroom where sustainability of the environment is being investi... more This case has been used in the classroom where sustainability of the environment is being investigated. After a discussion on global warming, the topic focused on the efforts by the European Union to develop a number of steps to counter detrimental climate change and to reduce greenhouse gasses. The Copenhagen Climate Change Summit and the Cancun Conference were discussed. Eventually the discussion turned to less developed countries and their efforts to reduce greenhouse gasses. India was then singled out as a country that is less developed and a target for reducing its environmental imprint.

Advances in environmental accounting & management, Oct 16, 2014

We investigate the state of environmental financial reporting since the increased regulation impo... more We investigate the state of environmental financial reporting since the increased regulation imposed by the Securities and Exchange Commission and other regulatory bodies during the 1990s by examining mandatory environmental disclosures for a sample of petroleum firms. Our ...

Emerald (MCB UP ) eBooks, May 19, 2004

This study examines whether the 38 electric utility firms owning the 110 plants targeted by the 1... more This study examines whether the 38 electric utility firms owning the 110 plants targeted by the 1990 Clean Air Act (CAA) made adequate pollution disclosures to inform the stakeholders whether they met the pollution emission requirements of the Act by the start of its first phase. First, it evaluates pollution emissions of the targeted plans at the start of the first phase of the Act, i.e. 1995. Then, it evaluates whether pollution disclosures of these firms improved leading up to the first phase of the Act. This evaluation is done by comparing pollution disclosures for the start of the first phase, i.e. 1995, with the year the CAA was enacted, i.e. 1990. Pollution emission data are obtained from the Department of Energy and from the Environmental Protection Agency (EPA), and pollution disclosure data for 1989, 1990 and 1995 are obtained from the annual reports and 10Ks. A specifically designed content analysis technique is used to categorize pollution disclosures. The pollution emissions results indicate that 1995 emissions are significantly lower than 1990 emissions. On an individual plant basis, the results, however, indicated that some plants reduced emissions while others used the permit system. The pollution disclosures results indicate that the 1995 pollution disclosure are comparatively lower than 1990 disclosures. The reason for high disclosures for 1990 could have been to protect the firms against potential legal cases if the requirements were not met. Once the fears of legal actions subsided, pollution disclosures were probably reduced. Lack of consistency and adequacy in pollution disclosures, however, make it difficult for stakeholders to properly evaluate their future risks.