Environmental Disclosure Research Articles

Local environmental organizations and long-term investor value appropriation

This study uses datasets representing local non-governmental organizations (NGOs) to examine how local environmental organizations enhance long-term investor value appropriation (LIVA). We explore how external and internal firm factors influence the impact of local activism. Our results indicate a positive effect of local activism on LIVA, particularly in contexts where local communities and firm governance structures prioritize long-term value. Furthermore, in examining the mechanisms through which local environmental organizations affect LIVA, we find that firms tend to increase their environmental disclosures in response to local activism. These findings support the social movement theory that social activities inspire firms' social and environmental activities and reporting practices, subsequently affecting LIVA.

Relationship between Awareness and Implementation of Environmental Management Accounting–Evidence from Small and Medium-Sized Enterprises in Thailand

In this study the relationship between awareness and implementation of Environmental Management Accounting within small and medium-sized enterprises listed in Market for Alternative Investment in Thailand was explored. A descriptive and correlational study design was adopted, and questionnaires were used to collect data from 57 small- and medium-sized Thai enterprises. The results provided empirical evidence that these firms had a moderate to high level of awareness of some aspects of environmental management accounting, and were practicing it to a certain extent. Furthermore, a positive correlation (.500, p < .01) between environmental accounting awareness and accounting practice was found. Hence, this implied that when firms were aware of the impact of environmental disclosures on their operations and had access to environmental management accounting knowledge, they were more likely to adopt appropriate accounting practices. The implementation of environmental accounting among small to medium enterprises in Thailand is still in the early stages. Further support and development are required to foster implementation. Further studies are encouraged–both qualitative studies to gain deeper insights into challenges of implementing environmental management accounting, and quantitative studies about factors that would better enable its practice.

Environmental disclosures and financial performance amid banking crisis and COVID-19: evidence from Ghana

Purpose The purpose of this study is to examine the impact of environmental disclosures (END) on the corporate financial performance (CFP) of listed companies in Ghana before and during the Banking crisis (BKC) and the COVID-19 pandemic (COV). Design/methodology/approach This study used data from 16 companies listed on the Ghana Stock Exchange between 2012 and 2021. The END Index was used, which uses percentile ranking and is guided by Global Reporting Initiative guidelines. A diverse set of empirical tests were used to examine whether ENDs affect CFP during crises. Findings The study offered support for the stakeholder and signaling theories generally applied to the study of END. The results confirmed that ENDs have a significant positive effect on CFP measures, return on equity and earnings per share, before and during the crises. The BKC and COV had no impact on the CFP. Practical implications As Ghana is still recovering from the 2017 to 2020 BKC and COV, the findings of this study highlight the need for managers to embrace END reporting and engagement strategies to improve CFP and firm reputation. Originality/value To the best of the authors’ knowledge, this study is the first to examine the effect of END on CFP in the context of before and considering the Ghanaian BKC and COV. In addition, it is one of the few studies that investigates how ENDs affect the CFP of Ghanaian-listed firms.

Primary care team perspectives on approaches to engaging patients in treatment for opioid use disorder

IntroductionEngagement is a critical component of successful treatment for opioid use disorder (OUD). However, rates of patient engagement in OUD treatment, especially in outpatient settings, are variable and often low. Little is known about the specific strategies members of primary care teams use to initiate and encourage ongoing participation in OUD treatment. In a national cohort of primary care clinics in the U.S., we explored the perspectives of primary care team members on the meaning of and approaches to OUD treatment engagement. MethodsWe conducted semi-structured interviews with 35 providers from multidisciplinary primary care teams in an existing national cohort of 13 clinics across seven states. Teams were delivering OUD treatment via the Collaborative Care Model, a model that combines primary care providers (PCP), behavioral health care managers (BHCM) and consulting psychiatric providers (CPP) in a structured way to provide patient-centered, team-based, and measurement-based care. Interview participants included 14 PCPs, 13 BHCMs, and 8 CPPs. Interviews asked open-ended questions about provider experiences and practices that aided or hindered patient engagement in OUD treatment. Interview transcripts were double-coded by trained qualitative researchers and analyzed using a combination of deductive and inductive approaches to identify themes. ResultsTwo themes emerged that describe provider perspectives on the meaning of engagement: 1) qualifying engagement by the volume of contact with patients, and 2) the need for more multidimensional measures of engagement. Six themes emerged that characterized provider engagement practices: 1) creating an environment of disclosure, 2) normalizing OUD treatment, 3) offering gentle but persistent outreach, 4) providing human connection and encouragement, 5) tailoring treatment to patient needs, and 6) avoiding stigmatizing responses. Analysis identified multiple replicable strategies that providers used to support these engagement practices. ConclusionsProviders consistently apply a range of strategies when trying to engage patients in OUD treatment. Specific engagement strategies used embodied compassion and pragmatism, hallmarks of patient-centered care. Further research is needed to understand the impact of scaling engagement approaches across all care settings.

Hong Kong’s changing regulatory approaches to corporate environmental, social, and governance (‘ESG’) disclosure: an evidence-based assessment

ABSTRACT Though the Stock Exchange of Hong Kong has heightened the environmental, social, and governance (‘ESG’) reporting regulation throughout the past eight years, little of the existing scholarship has investigated Hong Kong-listed companies’ ESG reporting performance. This research aims to fill this gap by examining how the tightening of ESG reporting regulations affects environmental disclosure quality of Hong Kong-listed Chinese companies. Drawing on legitimacy theory and institutional theory, this study constructs a theoretical framework tailored to Hong Kong-listed Chinese companies. Using a sample comprising ESG reports of 100 Hong Kong-listed Chinese companies in financial years 2015–2021, the analysis shows that environmental disclosure quality was on a rising trend in the wake of stricter ESG reporting regulations. Moreover, this study contributes to the existing literature by differentiating the applicability of legitimacy theory and institutional theory to ESG reporting performance in Hong Kong from that in the western developed economies.

Gender diversity and climate disclosure: a tcfd perspective

AbstractThe paradigm of corporate environmental disclosures aimed at investors developed in 2017 with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Existing literature on social responsibility disclosures points to gender diversity on the board of directors as an influencing factor. This study aims to assess the influence of gender diversity in climate-related financial disclosures, as recommended by the TCFD based on a sample of 27 companies operating within the sectors of electricity, oil, coal and gas, water, and alternative energy that have announced their adherence to the recommendations from 2017 to 2021. By applying a linear regression model, the results indicate the presence of a positive association between the level of TCFD disclosures and board gender diversity, as well as other factors, such as company size, CEO duality, and general liquidity. However, the influence of board gender diversity on corporate reporting based on the TCFD recommendations suggests that the commitment of boards to the reporting of climate change risks and opportunities is not significantly dependent on gender diversity, as the presence of women in the Boards is favorable for the reporting but without a significant impact on the level of disclosures. This research offers insights into sustainability reporting practices, focusing on a relatively new perspective of reporting climate-related financial topics and their determinants. The findings hold implications for organizational leaders and stakeholders, mainly investors, as these recent sustainable reporting practices are challenging but also bring new opportunities related to transparency towards climate-related issues.

Corporate Financial Heterogeneity and Environmental Disclosure of Listed Oil and Gas Firms in Nigeria

Corporate Financial Heterogeneity and Environmental Disclosure of Listed Oil and Gas Firms in Nigeria

Analysis of Environmental Reporting Practices in Hospitality Industry in Ghana

Environmental reporting is a crucial tool for organisations to effectively communicate their environmental performance to stakeholders, foster transparency, and mitigate potential negative impacts. The study’s goal was to investigate environmental reporting practices in Ghana’s hospitality industry. The hospitality industry, despite its economic significance and environmental impact, is an excellent institution for environmental reporting studies due to Ghanaian problems and hospitality opportunities. This research employed a quantitative analysis of environmental disclosures from 192 hotels in Ghana. The researcher gathered data from annual reports, utility bills, and water bills, then conducted a systematic evaluation of these documents to gauge the extent and calibre of environmental reporting. The data was categorised into five groups using the Index of Environmental Disclosure (IED). Descriptive and inference statistics, such as measures of central tendency and dispersion, was employed to quantify and summarise the environmental disclosures. This allowed for a comprehensive assessment of present practices and the identification of opportunities for improvement in the Ghanaian hospitality industry. The study’s findings reveal the hostels’ environmental performance, with a high score of 75.52% for Environmental Policy and Initiatives. However, the study identified poor pollution management and reduction efforts at 38.44%. The Environmental Reporting Elements category scored 27.89%, which suggests more transparent reporting. The Environmental Audit and Compliance category scored 39.96%, indicating partial compliance. It emerged that a very modest positive correlation (r) of 0.12531 exists between hotel age and total disclosure, suggesting that as hotels age, their total disclosure increases marginally. The result shows significant variances in overall disclosure among the four hotel groups, with star ratings explaining much of the diversity: 2-star hotels have the lowerst mean total disclosure percentage, 3-star slightly higher, 4-star significantly higher, and 5-star highest. This positive correlation between hotel star ratings and environmental transparency shows that 4-star and 5-star hotels are more environmentally conscious. Sustainability in the hospitality industry requires environmental reporting to track progress, create standards, and drive continual improvement. This study offers valuable guidance to hotels, lawmakers, and other individuals or groups interested in promoting sustainability and transparency in the industry.

Assessing the influence of tourism development, via renewable energy and green finance in achieving high-quality economic development

This study empirically examines the influence of tourism development, renewable energy and green finance (GF) on high-quality economic development. Using data from 33 years of data in China from 1990 to 2022, this study applies Gregory Hansen analysis to investigate the relationships between tourism development (TD), renewable energy (RE), green finance, and high-quality economic development (HQED), and accepts a Spatial auto regressive. This study demonstrates that tourism development plays a crucial role in promoting high-quality economic growth by positively impacting all three of its components. Moreover, the utilization of renewable energy further enhances the beneficial influence of green finance on the promotion of superior economic growth (EG), while also impacting the correlation between foreign direct investment (FDI) and superior economic growth. Our study suggests three policy recommendations for policymakers based on these findings. These recommendations include strengthening the integration of tourism development with GF, establishing an environmental disclosure framework to oversee local governments in enhancing the effectiveness of GF, and implementing medium- and long-term favorable policies as an external intervention strategy to encourage green finance in the private sector.

GREEN ACCOUNTING PRACTICES IN INDONESIAN COMPANIES

This research aims to analyze green accounting practices in Indonesia. Environmentally accounting practices are assessed using the Global Reporting Initiative (GRI). The research sample consists of companies on the Indonesia Stock Exchange that produce sustainability reports from 2020 to 2022. The descriptive analysis describes insights into environmentally friendly accounting practices in Indonesia, while the ANOVA test is used to test the differences in environmentally friendly accounting practices based on industry types and years of study. The results show that environmental disclosure in Indonesia is still deficient. The companies allocate minimal expenditure on environmental issues. The different test results show that there is no significant difference in environmental costs based on industry type, there is a significant difference in environmental disclosure based on industry type, there is no significant difference in environmental costs based on year of study, and there are significant differences in environmental disclosure based on year of study.

Environmental, Social, Governance Disclosure, Leverage and Firm Value of Manufacturing Companies Listed on the Indonesian Sharia Stock Index

Purpose: This research aims to analyze the influence of environmental, social, governance disclosure and leverage on firm value in manufacturing companies listed on the Indonesian Sharia Stock Index (ISSI) for 2016-2021. Methodology: The sample in this research is manufacturing companies that meet specific criteria which were selected using a purposive sampling technique with a total research sample of 129 observation data. The data analysis technique used is multiple regression analysis which is processed using e-views12. Findings: The research results show that environmental disclosure has a negative effect on company value, social disclosure has a positive effect on company value, governance disclosure and leverage have no effect on company value. These results support signal theory and legitimacy theory, where a company's disclosure of certain information can provide a signal to show that the company has good value. Companies influence public perception by carrying out their business in accordance with applicable regulations in order to gain public trust which has implications for increasing company value. Novelty: This research uses manufacturing companies listed on the indonesian sharia stock index from 2016 – 2021 and add leverage variable.

Really Want a Whole? Or Take It Apart? Evidence of ESG disclosure heterogeneity on Chinese Listed Firm

Purpose: We examined how ESG disclosure and its sub-dimensions impact holding period returns, profitability, and company value. Design/methodology/approach: Utilizing Bloomberg panel data, the research investigates the effects of ESG dis-closures and their sub-dimensions on financial metrics within the Chinese stock market. Findings: Results reveal a multifaceted impact of ESG disclosures: environmental aspects positively affect returns, governance has a negative impact, and social factors show no significant effect. Overall ESG disclosures enhance Tobin's q, particularly driven by environmental factors. The study also identifies industry specific ESG effects and confirms ESG disclosure as a precursor to firm value, addressing endogeneity concerns. Research limitations/implications: The study offers vital insights for investors, guiding them on the differential impacts of ESG components on returns in China. It informs policymakers on crafting nuanced ESG disclosure regulations and encourages researchers to further explore ESG effects across industries and markets. Originality/value: This research uniquely dissects the disparate impacts of ESG dimensions on firm performance, emphasizing environmental disclosures and industry heterogeneity, especially during the COVID-19 pandemic. It advances the literature by detailing how various ESG facets affect firm performance, aiding stakeholders in aligning sustainability strategies with market expectations.

DOES INTELLECTUAL CAPITAL STRENGTHEN ENVIRONMENTAL DISCLOSURE ON FINANCIAL PERFORMANCE DURING COVID-19?

This research aims to examine the moderating role of Intellectual Capital (IC) on the influence of Environmental Disclosure (ED) on Financial Performance (FP) in the energy sector listed on the IDX for the period 2020 to 2022. The analysis uses Ordinary Least Square (OLS). The research results found that IC was able to moderate the relationship between ED and EP. This research contributes to the RBV theory regarding IC, an intangible asset in this case that can play a role in increasing ED and FP and encouraging the company's competitive advantage. Apart from that, this research also contributes to sustainability theory, which states that sustainability in companies requires the role of IC as a variable that can encourage ED to increase FP. Thus, IC becomes an important variable that companies must consider to increase FP while still paying attention to sustainability factors.

Analysis of Sustainability Performance and it’s Impact on the Firm Value of LQ-45 Low Carbon Leaders Indexed Companies with Profitability as a Moderating Variable

The shift in awareness of the importance of business sustainability requires companies not only to maintain business continuity but also to play a role in sustainable development. A Sustainability Report is a disclosure document provided by a regarding its performance in economic, environmental, and social aspects of its operations. The purpose of this research is to determine whether the GRI topic standards disclosed by companies affect the firm value, moderated by profitability. This study examines the impact of economic disclosure, environmental disclosure, and social disclosure on firm value, with profitability as a moderating variable. The research was conducted on LQ-45 Low Carbon Leaders index companies during the period from 2020 to 2022. The study was conducted by performing a content analysis of sustainability reports and subsequently conducting a regression test using EViews version 12. The results of the study indicate that 1) economic disclosure has a significant impact on firm value, 2) environmental disclosure does not have a significant impact on firm value, 3) social disclosure does not have an impact on firm value, and 4) profitability only moderates the impact of environmental disclosure on firm value.

Green Disclosure and Innovation to Corporate Loan: Case of LQ45 Index Companies

Following the Paris Agreement on Climate Change, Indonesia committed to reducing greenhouse gas emissions by 29% through its own efforts and 49% with international support. To achieve this, the Indonesian government is advancing sustainable finance, as mandated by the 1945 Constitution, which ensures the right to a proper environment and sustainable economic principles. Supported by the Financial Services Authority (OJK), Indonesia introduced regulations like POJK No.51/POJK.03/2017 and POJK 60/POJK.04/2017, requiring financial institutions to adopt sustainable finance principles and develop environmentally friendly securities. Commercial banks must submit a Sustainable Finance Action Plan (RAKB) and sustainable reports to OJK, with green credit being a key component.This study employed a quantitative approach to examine the relationships between Green Credit Policy, corporate access to bank loans, environmental disclosure, and green innovation in Indonesian commercial banks. The analysis of historical data revealed that the Green Credit Policy significantly influenced corporate loan accessibility. Companies with robust environmental disclosures and a history of green innovation also experienced better loan acquisition outcomes.

Long-term credit and green innovation : causal evidence from China

ABSTRACT Environmental issues are a global challenge. In bank-centric financial systems such as China’s, the impact of long-term credit on sustainable development is a crucial yet underexplored issue. We use a plausibly exogenous long-term credit policy (LCP) implemented in 2019 to identify the impact of long-term credit on green innovations. Using a difference-in-differences (DID) approach, we find that long-term credit increases firms’ low-quality green innovations by optimizing credit term structures and generates spillover effects on environmental performance. Moreover, long-term credit significantly enhances high-quality green innovation in regions with more stringent environmental disclosure regulations. These findings reveal a quantity-over-quality effect of long-term credit on green innovation and highlight the critical role of integrating financial and environmental policies.

Role of investor attention and executive green awareness on environmental information disclosure of Chinese high-tech listed companies

Against the backdrop of growing public concern about environmental disclosure, and despite this concern, the level of environmental disclosure by high-tech firms remains low, necessitating a heightened emphasis on corporate environmental disclosure. This study delves into the impact of investor attention on the environmental information disclosure of Chinese high-tech firms, analyzing data from 463 firms between 2011 and 2022. Utilizing dynamic panel GMM, our findings highlight a significant negative correlation between investor attention and environmental information disclosure. We also introduced executive green awareness, exploring their moderating role. The results show that improved executive green awareness mitigates the adverse impact of investor attention on environmental information disclosure. However, heterogeneity analysis revealed that this moderating effect does not exist in IT service and non-polluting high-tech enterprises. This research offers policy implications for enhancing transparency and environmental governance through targeted investor engagement and executive training programs. The findings underscore the importance of a comprehensive regulatory framework tailored to sector-specific challenges in high-tech industry.

Can China go green through digitalization? Evidence from China's listed firms

This paper employs textual analysis of China's listed firms in 2007–2022 to investigate the influence of corporate digitalization on corporate green innovation. Utilizing the frequency of digital-related terms as an indicator of corporate digitalization degree, we find that: First, corporate digitalization has a positive impact on green innovation, which has been confirmed by several robustness tests. Second, this positive impact is heterogeneous in different digitalization types and different green innovation types. Third, environmental disclosure, absorptive capacity, and internal control are three main mechanisms. These findings can offer insights into the coordinated development of digitalization and green transition in emerging markets.

Legal obligation of ESG reporting and the quality of environmental disclosure practices: the case of Moroccan listed industrial companies

Purpose This paper aims to examine the impact of the legal obligation for environmental, social, and governance (ESG) reporting, introduced in 2019 by the Moroccan Capital Market Authority (AMMC), on the environmental disclosure practices of industrial companies listed on the Casablanca Stock Exchange (CSE). Design/methodology/approach An analysis of the content of the ESG reports of the industrial listed companies on the CSE is carried out over the two years that frame the year of implementation of the AMMC circular, i.e. 2018 and 2020, to analyze the difference in the quality of their environmental disclosures using a conformity criterion based on the Environmental section (N°300) of the “Global Reporting Initiative (GRI)” standards. Findings The results confirm the presence of a positive effect of the legal obligation for ESG reporting on the quality of environmental reporting of Moroccan industrial listed companies. However, the degree of compliance with the GRI framework remains incomplete. Originality/value This study helps to highlight the effectiveness of regulatory measures in improving the disclosure of relevant corporate environmental reporting of listed companies. The study also provides an overview of the progress made in implementing quality environmental reporting standards, specifically the GRI framework, in a developing country, namely, Morocco.

Does ownership structure affect carbon emission disclosure?

PurposeThe current research strives to shed light on how ownership structure can impact carbon emission disclosure.Design/methodology/approachThe present study is based on S&P BSE 500 Indian firms. Using manual content analysis, carbon emission disclosure data were collected from a final sample of 318 nonfinancial Indian firms over seven years, i.e. from 2016–17 to 2022–23, having 2,226 firm-year observations. The panel regression has been employed to examine the association between ownership structure and carbon emissions disclosure.FindingsThe results of the study suggest that ownership structure variables, such as institutional and foreign ownership, exert a positive and significant influence on carbon emission disclosure. Conversely, block-holder ownership is negatively associated with carbon emission disclosure.Practical implicationsThis study enriches the emerging literature on environmental disclosure, climate change, carbon emission disclosure and ownership structure.Social implicationsThe present research work provides treasured acumens to corporate managers, investors, regulators and policymakers as the study corroborates that ownership structure has an imperative role in firms' carbon emission disclosure.Originality/valueExisting literature has determined the impact of ownership structure on environmental disclosure. In contrast, the current research extends the climate change literature by providing novel insights into how ownership structure can influence firms’ carbon emission disclosure. Moreover, to the best of the authors’ knowledge, the present study is the first to scrutinize the relationship between ownership structure and carbon emission disclosure in the Indian context.