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13-08-2022 | Regular Article

Twitter carbon information and cost of equity: the moderating role of environmental performance

Authors: Mohammed S. Albarrak, Ngan Duong Cao, Aly Salama, Abdullah A. Aljughaiman

Published in: Eurasian Business Review

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Abstract

This study aims to examine the moderating role of a firm’s environmental performance, measured by its environmental strength and concern ratings, on the influences of Twitter dissemination of carbon-related information (Carbon_Tweets) on a firm’s cost of equity (COE). Our key focus is to provide an insight as to whether different levels of environmental strength and concern would influence the effect of Carbon_Tweets on the COE. Employing the sample of non-financial NASDAQ firms covering the period between 2009 and 2015, we found that the negative association of Carbon_Tweets and COE is strengthened for firms that have higher levels of environmental concerns, meanwhile the results stay the same for different level of environmental strength. These findings imply that although all firms can achieve lower COE by employing Twitter as a dissemination channel of Carbon information, firms with a concerning environmental status may benefit more by strategically disseminating via Twitter.
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Footnotes
1
Firms are considered technological if SIC equals to 3570–3579, 3610–3699, 7370–7379, 3810–3849, 4800–4899, 4931, 4941, which take a value of 1 or 0 otherwise.
 
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Metadata
Title
Twitter carbon information and cost of equity: the moderating role of environmental performance
Authors
Mohammed S. Albarrak
Ngan Duong Cao
Aly Salama
Abdullah A. Aljughaiman
Publication date
13-08-2022
Publisher
Springer International Publishing
Published in
Eurasian Business Review
Print ISSN: 1309-4297
Electronic ISSN: 2147-4281
DOI
https://doi.org/10.1007/s40821-022-00225-0

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