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1 – 10 of over 7000Emilio Passetti, Lino Cinquini and Andrea Tenucci
The purpose of this paper is to investigate to what extent the implementation of internal environmental management and voluntary environmental information is related to…
Abstract
Purpose
The purpose of this paper is to investigate to what extent the implementation of internal environmental management and voluntary environmental information is related to organisational change.
Design/methodology/approach
Organisational change literature provided a framework for the analysis of the materials which were collected through a mixed method. Data on internal environmental management were collected through a survey, while a quality disclosure index was used to assess the quality of the environmental voluntary disclosure. Interviews were used to enhance the quantitative results interpreted according to the four pathways proposed by Tilt (2006) and characterised by several levels of internal environmental management and voluntary disclosure.
Findings
The results indicated that companies implement more internal activities than external disclosure. Environmental planning and operational practices were the most important changes carried out. When environmental management accounting and environmental disclosure were also implemented, environmental aspects were more integrated within companies, thus revealing that a more structured integration of sustainability aspects within organisational values had taken place. The results underline the importance of primarily establishing a set of internal changes, driven by environmental planning, to promote organisational change.
Research limitations/implications
The study presents a larger empirical analysis of the organisational change pathways followed by companies, showing similarities and differences among the four pathways. The results underline the importance of both dimensions for studying organisational changes. The framework of Tilt has been enriched, considering a more precise explanation of the internal aspects and adding the concept of the quality of disclosure as proxy to assess organisational change.
Originality/value
Organisational change is investigated through an extensive analysis of internal and external aspects and collecting quantitative and qualitative evidence. The analysis complements previous sustainability accounting literature focussed on the analysis of internal environmental management and external disclosure.
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The purpose of this paper is to explore the development of environmental disclosure during periods of voluntarism and during periods with changed statutory requirements. More…
Abstract
Purpose
The purpose of this paper is to explore the development of environmental disclosure during periods of voluntarism and during periods with changed statutory requirements. More specific, the question is how volume and content variety of environmental disclosure in financial statements are immediately affected by statutory regulations.
Design/methodology/approach
In order to compare the effects of such regulations with the development in environmental disclosure during periods without any changes in statutory requirements, a longitudinal study is conducted to test five specific hypotheses. A quasi‐experiment with pre‐ and post‐testing of disclosure volume and content variety is carried out to test the effects of the statutory changes.
Findings
The most important lesson from this paper is the significance of the voluntary approach to improve the variety of environmental disclosure. The present paper supports the claim of voluntarism that companies will meet the heterogeneous requirements of their stakeholders without any governmental regulations. No statutory regulations are needed to make the companies increase and adapt their environmental disclosure to the demand from their stakeholders and legitimate their existence towards society. The present paper has revealed that the regulation approach has a significant, immediate effect on mandatory environmental disclosure only, and that companies do not fully comply with such statutory regulations.
Research limitations/implications
There is no universal notion of voluntarism. Different countries and societies have different legal requirements and political cultures regarding voluntarism. That is, voluntary reporting in Norway is affected by the national statutory requirements and may be underpinned by a certain set of societal responsibilities that may or may not exist elsewhere. Further research is needed to see whether these findings are readily generalized or whether they should only be interpreted in light of local considerations.
Originality/value
This is the first comprehensive study of the development of environmental disclosure in Norwegian companies. A total of 822 financial statements and annual reports, during the period between 1987 and 2005, are analysed.
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Stacey Cowan and David Gadenne*
Purpose – This paper extends the literature in the environmental disclosure area by examining annual report disclosure practices of Australian companies within the combined…
Abstract
Purpose – This paper extends the literature in the environmental disclosure area by examining annual report disclosure practices of Australian companies within the combined voluntary and mandatory environmental disclosure system. Design/methodology/approach – Content analysis was used to investigate the environmental disclosures over three consecutive years in the annual reports of companies that would be subject to environmental regulation and/or perceived to be environmentally sensitive. Findings – The study finds that Australian listed companies have a propensity to disclose higher levels of positive environmental disclosures in the voluntary sections of the annual report than in the statutory sections of the annual report. Research limitations/implications – These results suggest that regulatory authorities may need to acknowledge the usefulness of mandatory disclosure requirements as a potential means of counter‐balancing the voluntary disclosure system. It has been argued that the annual report is not the sole disclosure medium used by companies Further research may not only investigate these issues but also add weight to arguments for more environmental accountability. Practical implications – The results suggest that companies adopt different disclosure approaches when the disclosures are potentially under surveillance or increased scrutiny via legislated environmental disclosure requirements. Originality value – This research provides evidence that companies continue to use greater levels of self‐puffery within a voluntary reporting environment than within a mandatory reporting environment, and suggests that stakeholders may be more likely to receive information that is less favourable to the corporation (and potentially more decision‐useful to stakeholders) within a legislated disclosure environment.
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Ikram Radhouane, Mehdi Nekhili, Haithem Nagati and Gilles Paché
This paper aims to investigate whether providing voluntary external assurance on voluntary environmental information by firms operating in environmentally sensitive industries…
Abstract
Purpose
This paper aims to investigate whether providing voluntary external assurance on voluntary environmental information by firms operating in environmentally sensitive industries (ESI) is relevant in terms of market value. It also examines how various characteristics of assurance statements (i.e. level of assurance, scope of assurance and provider of assurance) affect the value-relevance of environmental disclosure by ESI firms.
Design/methodology/approach
To mitigate the endogeneity problem, the authors use the two-step generalized method of moments estimation approach.
Findings
Focusing on annual and social reports of French companies listed in the SBF120 index, results show that environmental disclosure by ESI firms and its assurance are destructive in terms of market value. Moreover, while providing a broader scope of assurance and having a professional accountant as the assurance provider enhance the value relevance of environmental reporting of the whole sample, this is unlikely to be the case for ESI firms. In particular, a higher level of environmental disclosure is financially rewarded by market participants for ESI firms that provide a higher level of assurance.
Practical implications
The study provides a better understanding of the circumstances under which market participants assign value to voluntary environmental information disclosed by companies operating in ESI. It also provides insights into the value added to different characteristics inherent in the quality of assurance provided with regard to environmental disclosure.
Social implications
The study indicates that the institutional context of the relationship between the firm and its shareholders influence the value obtained from assurance. Results provide value insights regarding cultural and legal dimensions of environmental reporting.
Originality/value
The study extends the prior literature on the capital market benefits of voluntary assurance practices by focusing on the French legal environment. France can be considered as a new institutional context that has been little addressed by the existing literature.
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Bo Bae Choi, Doowon Lee and Jim Psaros
This study aims to report the extent of voluntary carbon emission disclosures by major Australian companies during the years 2006 to 2008. This paper provides contemporary data…
Abstract
Purpose
This study aims to report the extent of voluntary carbon emission disclosures by major Australian companies during the years 2006 to 2008. This paper provides contemporary data and explanations about carbon emissions reporting in Australia. Additionally, the paper aims to determine the variables that explain the extent of carbon disclosures.
Design/methodology/approach
The carbon disclosure score is measured directly from individual companies' annual reports and sustainability reports. A checklist is established to determine the breadth and depth of the information related to climate change and carbon emissions incorporated in these publicly available reports.
Findings
The overall carbon disclosure score has increased significantly over the authors' research period. Furthermore, regression results show that larger firms with higher visibility tend to make more comprehensive carbon disclosures. Overall, the authors' results indicate that the legislation of the National Greenhouse and Energy Reporting Act (the NGER Act) in 2007 may have enhanced the voluntary carbon emission disclosures in 2008, even though the NGER Act was not operative until the 2009 financial year. From a theoretical perspective, the findings of the paper are consistent with legitimacy theory.
Originality/value
Previous studies examining environmental disclosures in Australia are based on a time period prior to widespread public discussion and interest in climate change and carbon emissions. By investigating voluntary disclosures made by large Australian companies around the time that the mandatory emission reporting scheme was introduced, this paper investigates whether the prominence of discussion and impending operation of the mandatory environmental disclosures have led to a greater extent of voluntary carbon disclosures. The findings can help regulators draft appropriate legislation that targets industries and specific practices where disclosure is of greatest importance to relevant stakeholders. In addition, an understanding of who and why entities disclose carbon gas emission information can arm green groups and other stakeholders with an appropriate level of understanding about the motivation for such disclosures.
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Kim Shima and Scott Fung
The purpose of this study is to use recent US legislative activity surrounding changes to the Environmental Protection Agency (EPA)/Clean Air Act in 2010, which changes the…
Abstract
Purpose
The purpose of this study is to use recent US legislative activity surrounding changes to the Environmental Protection Agency (EPA)/Clean Air Act in 2010, which changes the practice of environmental policy of a firm, and the unique setting of Utility industry to examine the relationship between a firm’s voluntary accounting disclosure and environmental performance.
Design/methodology/approach
This study features hand-collected data of environmental disclosure and examines its relation with environmental performance. To address the endogeneity problem, a difference-in-differences test with propensity score matching is performed to study the impact of policy change on environmental disclosure.
Findings
The findings of this study show that measures of environmental performance have a significant and positive association with a firm’s voluntary disclosure. The results from difference-in-differences test show that adjustments in environmental performance after regulatory change have a causal and positive effect on a firm’s voluntary disclosure.
Research limitations/implications
The findings support theories of signaling and voluntary disclosure that better-performing firms provide more information disclosure of their environmental performance.
Practical implications
The findings show real adjustments in firm environmental performance and consistent voluntary disclosure around the enactment of environmental legislation, which may have important implications for environmental rule making bodies and management about the effectiveness of their regulations.
Originality/value
This study is among the first to examine the causal relationship between environmental performance and disclosure within the context of recent changes in US environmental regulation. This study also provides the Utility industry experiment with difference-in-differences test to tackle endogeneity in the relation between performance and disclosure.
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Albertina Paula Monteiro, Cláudia Pereira and Francisco Manuel Barbosa
This study aims to construct two environmental disclosure indices (EDI), one obtained from the mandatory reporting (annual report) and the other from the voluntary reporting…
Abstract
Purpose
This study aims to construct two environmental disclosure indices (EDI), one obtained from the mandatory reporting (annual report) and the other from the voluntary reporting (sustainability report), to compare their evolution. In addition, the authors developed and evaluated a conceptual model that aims to analyse if the two EDI are affected by industry, environmental certification, lucratively and corporate governance attributes. The legitimacy, signalling and voluntary disclosure theories are used to support the theoretical relationship between the company’s characteristics, corporate governance and environmental disclosure.
Design/methodology/approach
Using the content analysis technique, the authors have developed two indices to assess the level of environmental disclosure in the companies’ mandatory and voluntary reporting. In addition, to analyse the determinants of EDI, the authors applied the technique of multiple linear regression using panel data.
Findings
Based on Portuguese listed companies (Euronext-Lisbon), the results, from 2015 to 2017, exhibited an increase of 14.6% and 25.8% for the EDI obtained from the annual reports and for EDI obtained from the sustainability reporting, respectively. In addition, the results revealed that the environmental certification, lucratively, number of members on board and number and proportion of women of the board directors tend to affect the annual reporting EDI. Regarding the sustainability reporting EDI, the results showed that the environmental certification, lucratively and proportion of independent members of the board of directors have an impact on it.
Research limitations/implications
The study focuses on quantitative rather than qualitative disclosures and it brings some insights to the theoretical field.
Practical implications
The results obtained can assist corporate decision-making processes regarding the improvement of environmental disclosure, both on the mandatory annual report and on voluntary sustainability reports.
Originality/value
This study brings new perspectives to this topical issue in accounting. Originally, this study is applied to Portuguese listed companies and it shows different trends and determinants of environmental disclosure when included in the annual reporting or sustainability reporting.
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José Alexandres Dos Santos, Rosamaria Moura-Leite, Matheus Wemerson Gomes Pereira and Marta Pagán
Brazil’s agribusiness sector is an acknowledged and relevant player in international markets. Companies operating in this industry have been closely observed by society with…
Abstract
Purpose
Brazil’s agribusiness sector is an acknowledged and relevant player in international markets. Companies operating in this industry have been closely observed by society with increasingly critical judgment relating to production systems and the impact of these companies. In this context, this study aims to assess the voluntary disclosure of social and environmental information of Brazilian agribusiness companies and test the determinant factors.
Design/methodology/approach
The research hypotheses are based on stakeholder theory, legitimacy theory and results from social and environmental disclosure studies. Confirmatory factor analysis was adopted to build the dependent variables, and the Tobit model was used for hypotheses testing. The sample includes the 150 largest agribusiness companies in Brazil.
Findings
The results show that the disclosure measures of agribusiness companies differ by segment and that internationalization, negative media exposure and pollution are critical factors in increased voluntary social and environmental disclosure.
Practical implications
Knowledge about the determinants and quality of voluntary disclosure is key in driving social responsibility policies. In addition, they are useful to executives for the preparation of social responsibility and environmental reports.
Originality/value
The results of this study contribute to the literature on voluntary social and environmental disclosure by providing information on an important but poorly studied sector, namely, agribusiness in Brazil.
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Monica Singhania and Ibna Bhan
This study aims to systematically consolidate and quantitatively integrate the mixed empirical results on the association between ownership mechanisms and voluntary carbon…
Abstract
Purpose
This study aims to systematically consolidate and quantitatively integrate the mixed empirical results on the association between ownership mechanisms and voluntary carbon disclosure using meta-analysis and further propose potential country-level moderators of this relationship.
Design/methodology/approach
The authors apply meta-analytic procedures on 55 empirical studies conducted during 2008–2022, covering 13 countries, 85 effect sizes and 226,473 firm-year observations. To gauge the significance of the estimated mean effect size, a random-effects Hedges and Olkin meta-analysis procedure is adopted, followed by a restricted maximum likelihood based meta-regression, to test the effect of possible moderators.
Findings
Aligned with agency and stakeholder theories, the results highlight institutional and state ownership (SO) as having a significant positive impact on voluntary carbon disclosure. On the other hand, ownership concentration, managerial and foreign ownership have an insignificant effect on voluntary carbon disclosure. Based on institutional theory perspectives, the authors confirm the impact of institutional ownership on voluntary carbon disclosure to be more prominent in civil law countries and those countries that have implemented an emission trading scheme (ETS).
Practical implications
The finding that institutional and SO in firms can translate into higher voluntary disclosures deems investors and the government as crucial stakeholders in achieving carbon neutrality. Furthermore, the finding that the effect of institutional investors on carbon disclosure is heightened in ETS-implemented countries provides evidence to the regulatory authorities in favour of this scheme.
Social implications
The positive impact of institutional and government ownership on voluntary carbon disclosure highlights that these ownership structures not only have the potential to transform corporate decisions but also have implications for the wider society. As firms owned by institutional investors disclose their carbon information, it provides access to critical information about their environmental practices to the public. This fosters an environment of transparency and trust between the firm and its stakeholders (the community), leading to an overall well-informed society.
Originality/value
While prior meta-reviews studied the impact of corporate governance on voluntary disclosures, the meta-literature, as of 2024, has yet to address its influence specifically on carbon disclosures, which are pertinent amidst the ongoing global climate change crisis. The findings inform policymakers about the pivotal institutional factors that can amplify the impact of effective ownership structures on voluntary carbon disclosure. Future scope exists for investigating the effects of ownership mechanisms on firm-level sustainable investments. Furthermore, future empirical analysis could consider the moderating influence of “culture” and “ease of doing business” on the ownership-carbon disclosure relationship.
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This study aims to examine the moderating effect of media exposure and media legitimacy on the environmental audit committee (EAC) regarding environmental disclosure quality as…
Abstract
Purpose
This study aims to examine the moderating effect of media exposure and media legitimacy on the environmental audit committee (EAC) regarding environmental disclosure quality as measured by voluntary and timely disclosure.
Design/methodology/approach
This paper was based on a sample of 81 French nonfinancial companies listed on the SBF 120 index and covered a six-year period; from 2014 to 2019. To test the hypotheses, a feasible generalized least squares regression was applied. Moreover, the authors checked the results using an additional analysis and the generalized method of moment model for endogeneity problems.
Findings
The results obtained show that for 482 French firm-year observations during the period 2014–2019, the media exposure does not play a moderating role between the EAC and the voluntary environmental disclosure; However, it plays a moderating role between the EAC and the timely environmental disclosure. The results also show that media legitimacy plays a moderating role between the EAC and the quality of environmental information. After testing for endogeneity problems, the findings remain unchanged.
Research limitations/implications
The findings of this study may be of interest to academic researchers, practitioners and regulators who are interested in determining the quality of environmental disclosure by considering the role of the EAC while giving a role to media exposure and media legitimacy in the French context. Considering the EAC as a powerful source of effective corporate governance to improve the quality of environmental disclosure for decision-making, the research provides valuable insights for policymakers and managers on the importance of this mechanism and the importance of the environmental media and its tone in making environmental reporting useful and relevant.
Originality/value
The originality of the work lies in the fact that it is one of the first works that deal with the moderating effect of media exposure on the relationship between the EAC and the quality of environmental information disclosure measured by voluntary and timely disclosure. To the best of the authors’ knowledge, no previous empirical studies have been conducted on this relationship in the French context or in other contexts.
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