Resumo

In recent years, companies have faced pressure for more disclosure of climate change strategies, like plans to reduce greenhouse gas emissions (Alsaifi et al., 2020) which play an important role in issues like climate change and global warming (Velte et al., 2020). This pressure is driven by various stakeholders concerned about physical risks to infrastructure and potential regulations that threaten climate change (Borghei, 2021). In this context, carbon disclosure is becoming management tool to achieve a transition to a low carbon economy and to manage firms (Caby et al., 2020).

(1) To what extent does carbon disclosure influence dividend payment? (2) To what extent does executive compensation moderate carbon disclosure - dividends payments nexus? (3) To what extent does executive compensation influence carbon disclosure? and (4) To what extent does sustainable compensation policy moderate executive compensation - carbon disclosure nexus?

We used agency theory in the paper. Agency theory addresses the conflicts of interest between shareholders (principals) and managers (agents) arising from the separation of ownership and control (Tibiletti et al., 2021) and to motivate managers (agents) to perform actions that meet the interests of shareholders (principals), the board of directors, taking into account the interests of shareholders, prepares compensation agreements aimed at reducing agency conflicts (Pepper, 2021)

The sample consists of 97 listed firms on the B3 (Brazil Stock Exchange and Over-theCounter Market) collected from 2015 to 2019. The sample is unbalanced, because full data is not available for all companies and for all years, and it consists of a total of 329 firm‐year observations. Our data set is made up of information from the Refinitiv database. Financial firms were excluded from the sample because they comply with specific accounting rules, making it difficult to compare annual financial statements between non-financial and financial companies (Pucheta‐Martínez et al., 2021).

We find a positive and significant relationship between carbon disclosure and dividend payment, this result is consistent with the voluntary disclosure theory. The results showed that executive compensation positively moderates the relationship between carbon disclosure and dividend payment. Our results also found that sustainable policy compensation positively moderates the relationship between executive compensation and carbon disclosure. However, executive compensation does not have a significant relationship with carbon disclosure

This study examines the relationship between dividend payment, carbon disclosure, executive compensation and sustainable compensation policy. Using data 97 listed firms on the B3 (Brazil Stock Exchange and Over-the-Counter Market) collected from 2015 to 2019, we employ the Panel-Corrected Standard Errors method. We measure dividend payment as dividend per share and carbon disclosure through an index of 14 indicators collected from the Refinitiv database, calculated from the ratio of disclosed carbon items to total environmental items.

Haque, F., & Ntim, C. G. (2020). Executive Compensation, Sustainable Compensation Policy, Carbon Performance and Market Value. British Journal of Management, 31(3), 525–546. 14 https://doi.org/https://doi.org/10.1111/1467-8551.12395