Voluntary Carbon Reporting Prediction: A Machine Learning Approach.

In this paper we address the impact of the introduction of the National Greenhouse and Energy Reporting scheme on corporate carbon reporting, and subsequently identify factors that influence the level of voluntary carbon reporting. A review of the literature demonstrates a large number of potential...

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Publicado en:Abacus Vol. 59; no. 4; pp. 1116 - 1167
Autores principales: Frost, Geoffrey, Jones, Stewart, Yu, Muchen
Formato: Artículo
Publicado: Wiley-Blackwell Dec2023
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Voluntary Carbon Reporting Prediction: A Machine Learning Approach.
      aug:
        au:
          Frost, Geoffrey
          Jones, Stewart
          Yu, Muchen
        affil: Business School, University of Sydney, Sydney 2006, New South Wales, , Australia
      su:
        Machine learning
        Corporation reports
        Random forest algorithms
        Machine performance
        Social responsibility of business
        Proxy
      sug:
        subj:
          Machine learning
          Corporation reports
          Random forest algorithms
          Machine performance
          Social responsibility of business
          Proxy
      keyword:
        Corporate governance
        CSR performance
        Financial performance
        Gradient boosting machines
        Logit
        National Greenhouse and Energy Reporting scheme
        Random forests
        Voluntary carbon reporting
      ab: In this paper we address the impact of the introduction of the National Greenhouse and Energy Reporting scheme on corporate carbon reporting, and subsequently identify factors that influence the level of voluntary carbon reporting. A review of the literature demonstrates a large number of potential factors have been previously deployed to explain voluntary reporting practices; however, the analytical and empirical methods widely used in the literature have limiting statistical assumptions and confine analysis to a small number of explanatory factors. To address this limitation in prior research we apply advanced machine learning methods, such as gradient boosting machines and random forests, to identify predictive variables through analytical means. We compare the performance of machine learning methods with traditional methods such as logistic regression. We find that machine learning methods significantly outperform logistic regression and provide fundamentally different interpretations of the role and influence of different predictive variables on voluntary carbon reporting. While most variables were not statistically significant in the logit results, a number of key proxies for financial performance, corporate governance, and corporate social responsibility have out‐of‐sample predictive power of the level of voluntary carbon reporting in the machine learning analysis.
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    language: English
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