ABSTRACT
This chapter shows that which theories can explain voluntary disclosure in a field and develops a comprehensive theoretical model based on disclosure quality. The respective theories in use — namely, stakeholder theory, legitimacy theory, institutional theory, and agency theory – have been derived by means of a recent literature review on carbon disclosure. The chapter analyzes that the knowledge about the management's reporting motivation and the complexity of carbon inventory reporting is especially important to an understanding of current reporting and assurance practices. The theoretical backing for carbon disclosure within the stakeholder theory is that certain stakeholders expect companies to reduce their impact on global warming over time, and that carbon disclosure can be seen as evidence of this success. The management of the disclosing company can choose between different levels of depth and quality of disclosure. The legitimacy argument is supported as company disclosure practise is criticized by disclosing only biased information.
