DO COMPANIESâ CHARACTERISTICS PLAY KEY ROLES IN THE LEVEL OF THEIR ENVIRONMENTAL DISCLOSURES?

Hussein Hussein

doi:10.3844/erjsp.2012.1.11

Abstract

After reviewing the literature, we noticed that the vast majority of studies in the field of environmental accounting and disclosure have focused on developed countries such as Western Europe, America and Australia, while neglected developing countries. This study investigates the relationship between the level of environmental disclosure and company’s characteristics. The researchers identified a number of characteristics that associate with companies’ environmental disclosure, these are: Company’s size, company’s privatization, company’s age and company’s nationality. In the light of empirical results it is noticed that almost 100% of companies disclose some environmental information and they provide three types of environmental information good, neutral and bad news. In addition a significant positive association found between level of environmental disclosure and company’s size, company’s privatization and company’s nationality. Therefore it provide further evidence which emphasize that these characteristics are important elements and have an impact on the level and value of environmental disclosure. On the other hand it was found that age of company is insignificant and negatively related to the level of environmental disclosure.

Highlights

Full disclosure is a characteristic of information quality in the accounting thought
In addition a significant positive association found between level of environmental disclosure and company’s size, company’s privatization and company’s nationality
It has been noticed that the vast majority of studies in the field of environmental accounting and disclosure have focused on developed countries such as Western Europe, America and Australia, including even international studies which have focused on these countries while neglected developing countries

Summary

Introduction

Full disclosure is a characteristic of information quality in the accounting thought. It is the mainstream media for all information on corporate activities to those parties interested in such information. Investors have been made aware of that and started pressing for the urgent need to disclose environmental information in their published annual reports. Mashat (2005) examined disclosure of social responsibility in Libya; he recommended the need to study the disclosure of social activities individually especially the environmental disclosure, due to the lack of studies on environmental disclosure in Libya Since environmental disclosure varies from one country to other due to economic, social, political and cultural differences, this results in differences in general and environmental disclosure in particular between different countries (Elnaby et al, 2003). Mashat (2005) examined disclosure of social responsibility in Libya; he recommended the need to study the disclosure of social activities individually especially the environmental disclosure, due to the lack of studies on environmental disclosure in Libya

Methods

Findings

Discussion

Conclusion