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1 – 10 of 170Fahad Khalid, Khwaja Naveed, Cosmina Lelia Voinea, Petru L. Curseu and Sun Xinhui
Given the regional diversity in China, this study aims to provide an empirical evaluation of how organizational stakeholders (i.e. customers, employees, suppliers and…
Abstract
Purpose
Given the regional diversity in China, this study aims to provide an empirical evaluation of how organizational stakeholders (i.e. customers, employees, suppliers and shareholders) affect corporate environmental sustainability investment (ESI).
Design/methodology/approach
To empirically investigate the influence of organizational stakeholders on ESI, this study used regional-level data consists of Chinese A-share stocks for the years 2009–2019.
Findings
This study’s findings show that pressure from customers, employees and suppliers has a significant effect on corporate ESI, with customers being the most important stakeholder group. Shareholders, by contrast, have no significant influence on ESI. The influence of these pressures is more pronounced in developed regions (the east) than in less developed (the west) localities of China.
Research limitations/implications
This study complements the stakeholder–institutional perspective by implying to consider the differentiated logics of the contesting stakeholders in the nonmarket operations.
Practical implications
Practically, this study poses that managers must realize the heterogeneity of pressures from stakeholders and the differentiated impact of these pressures keeping in view the institutional differences in different regions.
Originality/value
Our study reports initial empirical evidence that shows how regional differences influence the role of stakeholders in determining corporate environmental strategy.
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Reiner Quick and Petra Inwinkl
This paper aims to clarify whether assurance on non-financial corporate social responsibility (CSR) reports impacts the perceptions and decisions of banks as capital providers…
Abstract
Purpose
This paper aims to clarify whether assurance on non-financial corporate social responsibility (CSR) reports impacts the perceptions and decisions of banks as capital providers. The authors investigate the effects of the type of assurance provider and the level of assurance provided on decisions by banks to grant credit, make their own personal investments or recommend share purchases to their customers. The study aims to expand the domain of assurance on CSR reports (CSRR) by taking up a call by Cohen and Simnett (2015), who ask for behavioral research on how non-financial report’s intended users interpret and react to assurance.
Design/methodology/approach
The paper is based on an experiment case on a fictitious company with a 2 × 2 + 1 between-subjects design. To overcome concerns regarding external validity and to prove results in a real-world setting, the authors selected German bank directors as subjects due to the extremely high relevance of banks to the German economy. The authors investigated the perceptions of 69 bank directors and analyzed the influence of CSR assurance on their decisions.
Findings
The findings suggest that assurance positively influences confidence in CSRR and that, consequently, bankers are more likely to make favorable decisions toward the reporting companies, such as approving applications for credit, investing themselves in the company or recommending the purchase of shares to their clients. These effects are stronger when an accounting firm provides the assurance and when the assurance level is reasonable rather than limited.
Research limitations/implications
The arguments presented are, strictly speaking, limited to the case in the experiment and the views held by the bank directors at the time the authors sent out the questionnaires. Moreover, the cell sizes are quite small. Nevertheless, the authors were able to find highly significant results.
Practical implications
The main implication of the paper is that the purchase of CSRR assurance services has a positive effect on bank directors’ perceptions and decisions. They favor the provision of such services by accounting firms and they prefer a reasonable assurance level. Thus, it can be concluded that bank directors perceive quality differences between assurance providers, are able to recognize the difference between reasonable and limited assurance and that the related information is relevant for their decisions.
Originality/value
This paper fulfils an identified need to study the influence of CSRR assurance on decisions by bank directors. The observation of a high decisions-usefulness of CSRR assurance suggests that regulators should consider mandating some form of assurance on non-financial reports throughout the EU member states.
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Sandro Brunelli, Camilla Falivena, Chiara Carlino and Francesco Venuti
The increasing responsibility of organisations towards society and the environment has inverted the relationship between accounting and accountability, leading to…
Abstract
Purpose
The increasing responsibility of organisations towards society and the environment has inverted the relationship between accounting and accountability, leading to accountability-based accounting systems. This study aims to explore the debate on accountability for climate change within the integrating thinking (IT) perspective. Ascertaining the most significant trends in the debate around purposes and performance that characterise climate mitigation engagement and their connections, the study would explore if and to what extent organisations are tackling climate actions.
Design/methodology/approach
A narrative review of the extensive academic literature developed from the Kyoto Protocol to date was performed. After selecting a representative sample, papers were analysed with the support of a new analytical framework that involves three dimensions – answerability, enforcement and outcome – and governance schemes that emerge from the involvement of the private and public sector and civil society. With the support of NVivo software, themes arisen were analysed and coded. Key items were labelled, creating specific nodes and synthesised into the proposed framework.
Findings
A “silo approach” largely characterises the debate on accountability for climate change. The most significant reasons behind the shortcomings of extant climate actions may be retrieved firstly in the weakness of the motivations that guide organisations to operate in a climate-friendly way.
Social implications
This study underlines the need for a 360° integrated approach for strategically tackling climate actions.
Originality/value
This study would represent a further step towards an integrated approach for studying organisations behaviours in the “climate war”, embracing the connectivity between purposes and outcomes, capitals and the relationships amongst the various stakeholders.
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Sara Trucco, Maria Chiara Demartini, Kevin McMeeking and Valentina Beretta
This paper aims to investigate the effect of voluntary non-financial reporting on the evaluation of audit risk from the auditors’ viewpoint in a post-crisis period. Furthermore…
Abstract
Purpose
This paper aims to investigate the effect of voluntary non-financial reporting on the evaluation of audit risk from the auditors’ viewpoint in a post-crisis period. Furthermore, this paper analyses whether auditors perceive that voluntary non-financial reporting impacts audit risk differently for old clients as compared with new clients.
Design/methodology/approach
This study is conducted on a sample of Italian audit firms through a paper-based questionnaire. Both Big4 and non-Big4 audit firms have been included in the sample.
Findings
Results show that integrated reporting is perceived to be the most relevant reporting method and intellectual capital statement the least relevant. Surprisingly, empirical findings over the sample period show that auditors do not perceive statistically significant differences between old and new clients.
Practical implications
Auditors can identify opportunities to adapt their assessment model to include voluntary non-financial report information. Moreover, they can use different assessment models regarding the research variables in the case of new and old clients.
Originality/value
Empirical findings highlight the growing role of voluntary non-financial reporting in the auditors’ perception of their client’s audit risk. All the observed voluntary non-financial reporting forms, except for intellectual capital, are considered as relevant by auditors in the evaluation of their client’s audit risk when compared to an indifference point. In addition, findings reveal that female auditors perceive a reduced gap in the relevance between integrated reports and intellectual capital reports compared to their counterparts.
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In this study, the authors provide a systematic literature review of articles in the emerging areas of green finance and discuss the status and challenges in sustainability…
Abstract
Purpose
In this study, the authors provide a systematic literature review of articles in the emerging areas of green finance and discuss the status and challenges in sustainability disclosure, which is crucial for the efficiency of green financial instruments. The authors then review the literature on the economic implications of green finance and outline future research directions.
Design/methodology/approach
The authors use the analytical framework – Search, Appraisal, Synthesis, and Analysis (SALSA) to conduct the systematic review of the literature.
Findings
Increasing public attention to the environment motivates the use of green finance to fund environmentally sustainable projects, and the rise of green finance intensifies the demand for environmental disclosure. Literature has documented tremendous growth in sustainability reporting over time and around the globe, as well as raised concerns about how such reporting lack consistency, comparability, and assurance. Despite these challenges, the authors find that in general, the literature agrees that a firm’s green practice is positively associated with its financial performance and negatively related to a firm’s cost of capital. Green finance is also found to bring about enhanced risk management and economic development.
Originality/value
The authors provide one of the first reviews of green finance, sustainability disclosure and the impact of green finance on financial performance, capital market and economic development.
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Kofi Mintah Oware and V. Harshitha Moulya
There is a growing interest in how firms respond to environmental degradation and societal challenges. Firms respond through their sustainability reports, but assurance of the…
Abstract
Purpose
There is a growing interest in how firms respond to environmental degradation and societal challenges. Firms respond through their sustainability reports, but assurance of the reports gives confidence to the stakeholders. This study aims to identify the main research development in sustainability assurance which is rising in global studies.
Design/methodology/approach
This study uses a bibliometric analysis to assess the global trend in sustainability assurance studies. The methodology is based on descriptive, performance and science mapping. The set is based on 655 documents from the Scopus database, covering the period from 2005 to 2022.
Findings
The findings from the study suggest that sustainability studies are relevant, and the researcher's examination of the domain has dramatically increased from 2014 to date. This is due to the rise in the concerns expressed by stakeholders in satisfying themselves about the firm's responsibility to the Sustainable Development Agenda 2030. The findings also show that most research on sustainability assurance is from Spain, the USA, the United Kingdom (UK) and Australia. However, the UK has the most collaboration in terms of co-authorship. It is suggestive that the UK has more links than Spain, which is the most productive country with more publications. This may be attributed to the influx of more international students completing a second and third degree in the UK. The study highlights intellectual foundations and emerging trends and outlines avenues for future studies.
Research limitations/implications
This study is limited to the data obtained from the Scopus database.
Originality/value
This study is the first bibliometric study of the sustainability assurance domain.
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This study investigated the visibility of carbon emissions allowances accounting in the financial reports of 32 clean development mechanism (CDM) projects in the UAE to uncover…
Abstract
Purpose
This study investigated the visibility of carbon emissions allowances accounting in the financial reports of 32 clean development mechanism (CDM) projects in the UAE to uncover the obstacles to setting consistent standards for carbon emission accounting. As carbon emissions are monetized as credits, consistent accounting standards can aid decision-makers in the development of carbon emission mitigation strategies.
Design/methodology/approach
This study used a grounded theoretical framework for exploring the terms used in the policy documents of international accounting bodies regarding accounting standards and guidelines for carbon emission credits. Raw qualitative data were gathered, and an inductive approach was used by analyzing documents from various sources using the qualitative data text analysis software QDA Miner 6.
Findings
The findings showed that the financial statement reports of the corporations did not include disclosure of the carbon credit account. This omission was due to the lack of global standardization of carbon credit accounts and emission allowance recognition. This may hinder the production of a comprehensive report containing accurate and valuable financial information relevant to all stakeholders.
Originality/value
The study is among the first to use a grounded theoretical framework to investigate whether corporations are applying common standards and guidelines for carbon emissions accounting.
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Ruifeng Hu, Weiqiao Xu and Yalin Yang
Owing to increased energy demands, China has become the world’s top CO2 emitter, with electricity generation accounting for the majority of emissions. Therefore, the Chinese…
Abstract
Purpose
Owing to increased energy demands, China has become the world’s top CO2 emitter, with electricity generation accounting for the majority of emissions. Therefore, the Chinese Government aspires to achieve a low-carbon transformation of the electric industry by enhancing its green innovation capacity. However, little attention has been paid to the green development of electric technology. Thus, this paper aims to uncover the spatiotemporal evolution of electric technology in the context of China’s low-carbon transformation through patent analysis.
Design/methodology/approach
Using granted green invention patent data for China’s electric industry between 2000 and 2021, this paper conducted an exploratory, spatial autocorrelation and time-varying difference-in-differences (DID) analysis to reveal the landscape of electric technology.
Findings
Exploratory analysis shows that the average growth rate of electric technology is 8.1%, with spatial heterogeneity, as there is slower growth in the north and west and faster growth in the south and east. In addition, electric technology shows spatial clustering in local areas. Finally, the time-varying DID analysis provides positive evidence that low-carbon policies improve the green innovation capacity of electric technology.
Research limitations/implications
The different effects of the low-carbon pilot policy (LCPC) on R&D subjects and the LCPC’s effectiveness in enhancing the value of patented technology were not revealed.
Originality/value
This paper reveals the spatiotemporal evolutionary characteristics of electric technology in mainland China. The results can help the Chinese Government clarify how to carry out innovative development in the electric industry as part of the low-carbon transformation and provide a theoretical basis and research direction for newcomers in this field.
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Nadia Di Giacomo, James Guthrie and Federica Farneti
This paper aims to focus on a global consulting company and examine how it struggled to establish an effective environmental management control system for carbon emissions for its…
Abstract
Purpose
This paper aims to focus on a global consulting company and examine how it struggled to establish an effective environmental management control system for carbon emissions for its employees’ air travel. The organisation was motivated to reduce its carbon emissions both to comply with regulation and to enhance or maintain corporate reputation.
Design/methodology/approach
The paper takes a case study approach, examining internal and external documents as well as conducting interviews with senior staff.
Findings
The case study investigates how Beta’s management implemented a system to reduce carbon emissions. The organisation focused on air travel, but the study finds that employee travel preferences did not radically change. Rather than reduction in carbon emissions, as planned by head office, air travel carbon emissions actually increased during the period, and, as a consequence, the reported reduction targets were significantly adjusted downwards to meet the new realities.
Practical/implications
The study has implications for both policy and practice for organisations seeking to improve their sustainability performance.
Originality/value
The study responds to calls in the literature to undertake research to identify how management practices might reduce negative sustainability impacts, as there is little evidence of what management practices and accounting tools are being adopted, particularly in relation to carbon emissions from air travel. The paper adds to the creation of new accounting, giving visibility to carbon emission management through case study analysis.
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Antonella Francesca Cicchiello, Anna Maria Fellegara, Amirreza Kazemikhasragh and Stefano Monferrà
This study aims to investigate the influence of organisations’ board gender diversity on the adoption of the United Nations sustainable development goals (SDGs) and on the use of…
Abstract
Purpose
This study aims to investigate the influence of organisations’ board gender diversity on the adoption of the United Nations sustainable development goals (SDGs) and on the use of external assurance.
Design/methodology/approach
The paper combines data from the Global Reporting Initiative’s Sustainability Disclosure Database and the Orbis database from Bureau van Dijk. The study uses logit models based on a sample of 366 large Asian and African companies which have addressed the SDGs in their sustainability reports published in 2017.
Findings
The results reveal that board gender diversity is positively associated with sustainability reporting and the involvement of an external assurance provider.
Originality/value
This study adds to the growing literature on the relationship between women’s participation on corporate boards and SDG reporting. Additionally, it addresses the understudied question of how the gender diversity of board resources affects the adoption of the external assurance of sustainability reporting.
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