Accounting and Financial Management Research Seminar – Dr David Ririmasse

Accounting and Financial Management Research Seminar – Dr David Ririmasse

Title: The Effect of Carbon Emissions on Credit Ratings: Evidence from Asian Emerging Economies

Date: 19 March 2025

Time: 14:00 – 15:00

Venue: NUBS.2.08

If you would like to attend, please register using the following link:

The Effect of Carbon Emissions on Credit Ratings: Evidence from Asian Emerging Economies

Speaker: 

Dr David Ririmasse received his PhD in business and management from Queen Mary University of London in 2023. Prior to his doctoral studies, he worked for ExxonMobil as a project cost controller and senior auditor at EY. He joined Newcastle University Business School in September 2024. His research focuses on climate change and energy sectors and its impacts across developed and emerging markets. For further information, please visit his profile: Dr David Ririmasse.

Abstract:

This paper examines the impact of firm-level carbon emissions on credit ratings, drawing on eight emerging markets over the period 2010–2020. Specifically, the paper investigates the recent debates regarding the proxies for carbon emissions (intensity versus actual emissions) and whether the effect varies between carbon-intensive and non-intensive firms. A further novelty delves into the firm-reported and vendor-estimated emissions and attempts to assess the impact of different communication channels. The results show that the credit rating agencies consider carbon emissions on a selected basis, and they tend to penalize low emitters depending on the actual size of their emissions. Interestingly, firm-reported and vendor-estimated carbon emissions tend to be associated with positive credit ratings for carbon-intensive firms. However, the Introduction of the Paris Agreement seems to have a negative influence on carbon-intensive firms’ credit ratings.