Environmental Information In Annual Reports Research Articles

Environmental Disclosure Modelling in a Developing Economy: Does Corporate Governance Matter? A Double Hurdle Regression Approach

The paper examines environmental Disclosure Modelling in a Developing Economy using the Craigg double hurdle model and controlling for the role of corporate governance. This study employs the ex-post research design and investigates firm’s environmental disclosures in Nigeria, by controlling for corporate governance characteristics. The study employs a sample of 35 non-financial firms listed on the Nigerian Stock Exchange using the simple random sampling technique. Secondary data retrieved from the financial statements of the selected companies was used for the study. Both the Tobit and double-hurdle models were estimated but based on the Bayesian and Akaike’s information criteria for model selection, the double-hurdle model is preferred. The result reveals that though Board size is not a significant determinant of probability to disclose environmental information in annual reports (-0.0408, p=0.175), it is a significant determinant of the extent of environmental disclosure reports (0.1943, p=0.00) given that a firm has decided to disclose. Board independence is a significant determinant of both probability to disclose environmental information and extent of disclosure (-2.2373, p=0.00) with a negative coefficient. The Board gender diversity is not a significant determinant of probability to disclose environmental information in annual reports (-0.60076, p=0.461), it is a nevertheless a significant determinant of the extent of environmental disclosure reports (-3.5913, p=0.00) when firms then decide to disclose. Institutional ownership turns out to be a significant determinant of both the probability to disclose environmental information and extent of disclosure (0.0273, p=0.00) when firms choose to disclose. Finally, the truncated model results also reveals that though managerial ownership is not a significant determinant of probability to disclose environmental information in annual reports (-0.01352, p=0.148), it is nevertheless a significant determinant of the extent of environmental disclosure reports (-0.0206, p=0.001) when firms then decide to disclose.

French Requirements on Environmental Information in Annual Reports

Under French law, companies listed on the stock exchange were already obligated to include environmental information in their annual report based on the NRE law of May 15, 2001. A new decree dated April 24, 2012, which is part of the Grenelle reform of environmental regulations, extends such obligations to some non-listed companies. The environmental information to be provided is listed by the April 24, 2012 Decree and varies depending whether the company is listed or not. Such reporting will become mandatory in 2013, 2014 or 2015 depending on the size of non-listed companies.This working paper briefly discusses the new reporting regime, the implementation timetable set up by the French authorities, data to be included in the report as well as penalties issues in the case a company fails to comply with the reporting obligations.

The Valencia Port Authority (VPA): environmental information in the annual report

In recent years, most companies are participating in the disclosing of information on the impact of their potential activities on the environment. In 2002, Spain developed its legislation on environmental information in annual reports. The port industry has a potential environmental and economic impact. In this context, it is important to know how it disclosure environmental information in the annual reports. The case of study shows the disclosure information characteristics of Valencia Port Authority (VPA) and the relationships with the environment. The results concluded that VPA has adapted its information not only the standards but as a mean of legitimation.

Shareholder Requirements for Compulsory Environmental Information in Annual Reports and on Websites

Growing general concern regarding the natural environment may cause shareholders to require more accountability for environmental issues from the companies in which they invest. We do a survey of shareholders in three major Anglophone countries (Australia, the United Kingdom, and the United States) to determine whether they require compulsory environmental disclosure and where they would prefer companies to disclose such information. In all three countries, shareholders prefer compulsory environmental disclosure in annual reports (preferably in a separate section addressing the issue), as well as disclosure on websites, whereas separate environmental reports are less popular as a disclosure medium. Overall, legislation is preferred as a method to mandate environmental disclosure, with accounting standards more popular among American shareholders. The implication is that regulators may have to reconsider their current stance regarding corporate environmental disclosure.

Determinates of Environmental Reporting in Corporate Annual Reports of the Stock Exchange of Thailand (Set)

This study investigates environmental information provided in annual reports of Thai listed companies. Findings indicate that there are 62 companies (83%) providing environmental information in annual reports. Those companies with the largest environmental disclosures are in resource industry, while the lowest disclosures are made in agricultural and food industries. The most famous locations of environmental information in annual reports are revealed in corporate governance. The other form of popular disclosure is by photographs. The main themes of disclosures are environmental policy, environmental activities, and waste management. There is a positive relationship between amounts of environmental disclosures and size of company.

Factores determinantes del grado de información medioambiental divulgada en las grandes empresas que operan en Portugal: un análisis univariante

This paper has a double aim: firstly, to analyse the level of disclosure of environmental information in annual reports of large companies operating in Portugal during the period 2002-2004; secondly, to identify the factors that explain this level of disclosure, through a univariate analysis and on the basis of an Environmental Disclosure Index (EDI). The results reveal that, although the level of environmental information disclosed during the period 2002-2004 is low, it has been increasing. Univariate analysis reveals a significant association between EDI and variables such as size, quotation on the stock market, environmental certification and criticalindustries.Key words: environmental information disclosure, environmental disclosure index, contentanalysis.

ENVIRONMENTAL ACCOUNTING PRACTICES IN PORTUGUESE LOCAL ENTITIES

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Book Reviews

Book Reviews

Environmental information in annual reports: a survey of Swedish accountants

This paper presents an investigation of how the new demands for auditing environmental information in the administrative reports are perceived by Swedish accountants. Responses from 123 surveyed authorized public accountants show that they have a positive attitude towards environmental information. The accountants demand additional training and they believe that the amount of environmental information companies present is going to increase in the future, or at least not decrease. The survey results are analyzed from the basis of two perspectives: large auditing firms have better resources to educate, guide and train their employees than small auditing firms; and accountants with experiences in auditing environmental information have more training and a different attitude towards environmental information compared to accountants with no experiences. Whether or not accountants have received any special training differs significantly between accountants with experience from auditing environmental information, and those with none.

Environmental disclosures and public policy pressure

Disclosing environmental information in annual reports may affect the perceptions of an enterprise's earnings and cash flows. Our study investigates the changes in the levels of environmental disclosures subsequent to the 1989 Alaskan Exxon Valdez oil spill in four industries including the oil industry. Environmental disclosure data were obtained for 53 firms, using a computerized search of corporate annual reports for years 1988, 1989, and 1990. Our study uses two methods of enumeration, a quantity assessment and a quality assessment. The objective of our study is to determine if there are significant positive differences between years. Findings suggest significant positive differences in the levels of environmental disclosures from year 1988 to 1989 and from year 1989 to 1990, using both assessment measures. These findings lend support to environmental disclosures being time- or event-specific, and made in the firm's self-interest in response to public policy pressure.