Bassam Maali

Type of the article: Research Article

Abstract
Environmental reporting is expanding, yet many firms achieve limited environmental improvement when carbon effects are not translated into decision-relevant cost information for budgeting, pricing, and investment appraisal. This study examines whether integrating carbon costing into activity-based costing is associated with higher carbon and environmental disclosure quality and lower carbon intensity among listed firms in Jordan. The analysis uses disclosures for 12 firms over 2018–2024 and estimates two-way fixed-effects panel models with firm-clustered standard errors to test whether within-firm changes in costing integration are followed by changes in disclosure quality and emissions intensity after controlling for firm-specific unobserved heterogeneity and common year effects. The results show no statistically significant association between costing integration and disclosure quality (β = 0.013, p > 0.10) and no significant association with carbon intensity (β = 0.238, p > 0.10). The interaction analysis further indicates that the integration–disclosure relationship is not stronger in environmentally sensitive industries (β = −0.350, p > 0.10). By contrast, firm size is positively related to disclosure quality, suggesting that visibility, organizational capacity, and reporting resources matter more than costing integration in this context. These findings indicate weak implementation depth rather than clear environmental gains. Overall, carbon-costing integration has not yet become sufficiently embedded in routine managerial practice to produce measurable improvements in disclosure quality or emissions performance in Jordanian listed firms.