The purpose of this study is to investigate the association between environmental performance of firms and the level of voluntary environmental disclosure in emerging markets.
We used tobit regression OLS and t-test methods to reveal the association between environmental performance and the level of voluntary environmental disclosure.
We find a significant positive association between the level of discretionary environmental disclosures and corporate environmental performance. The result is in line with the arguments of economics disclosure theory that argues environmentally good performers disclose more.
Many of the environmentally good firms in Turkey are also listed in the “BIST Sustainability Index,” and this situation can be the result of the relative power of external regulations. Accordingly, it can be suggested to increase the community and governmental pressures for environmental reporting but also gives importance to increase intrinsic motivations for companies to engage in disclosure practices.
This study shed light on relation between environmental performance and environmental disclosure in an emerging market context. Also, it is revisited that the relation between environmental performance and the level of environmental disclosure by testing two different predictions on the level of environmental disclosures.
Acar, M. and Temiz, H. (2020), "Empirical analysis on corporate environmental performance and environmental disclosure in an emerging market context: Socio-political theories versus economics disclosure theories", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-04-2019-0255Download as .RIS
Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited