Quantifying the dynamics between environmental information disclosure and firms’ financial performance using functional data analysis

2021 ◽  
Vol 28 ◽  
pp. 192-205
Author(s):  
Deqing Wang ◽  
Xuemei Li ◽  
Sihua Tian ◽  
Lingyun He ◽  
Yan Xu ◽  
...  
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Functional Data Analysis ◽  
Functional Data ◽  
Information Disclosure ◽  
Environmental Information ◽  
Environmental Information Disclosure

scholarly journals The Effects of Environmental Performance and Environmental Information Disclosure on Financial Performance in Companies Listed on the Indonesia Stock Exchange

2019 ◽  
Vol 7 (11) ◽  
pp. 67-77
Author(s):  
Mikial Msy
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Environmental Information ◽  
Global Reporting Initiative ◽  
Sustainability Disclosure ◽  
Environmental Information Disclosure ◽  
The Cost ◽  
Sustainability Report

The objective of this study was to examine the effects of environmental performance and environmental information disclosure on financial performance in companies listed on the Indonesia Stock Exchange. The population in this study amounted to 20 companies listed on the Indonesia Stock Exchange, issued an Annual Report and Sustainability Report and included in the Sustainability Disclosure Database of the Global Reporting Initiative (GRI). The data used in the form of secondary data obtained from annual reports and sustainability reports of companies listed on the Indonesia Stock Exchange from 2013 to 2016. The numbers of observations in this study were 80. The analysis technique used was Partial Least Square (PLS). The novelty in this study is to measure environmental performance based on outcomes, namely environmental costs incurred by the company rather than compliance with regulations. The cost of a well-managed environment will improve environmental performance because there are efficient use of resources. The results of this study indicate that eenvironmental performance has no significant effect on financial performance, environmental information disclosure has a significant effect on financial performance. Disclosure of environmental information has a negative effect on financial performance, it shows that if the disclosure of environmental information is more equipped and in accordance with the disclosure guidelines, the cost is not small so that it will reduce financial performance. Research limitation that environmental costs is difficult to obtain so that the population is limited to companies listed on the IDX that have a Sustainability Report and are included in the Sustainability Disclosure Database of the Global Reporting Initiative. Disclosure of environmental information which is the result of the implementation environmental management accounting has not been done by all companies, because it is still voluntary is not mandatory. The suggestion of the research, the Indonesian Accountants Association is expected to form separate standards for measuring and reporting environmental cost information and standardized. For other researchers who are interested in researching environmental accounting can develop other variables for a longer time and the number of companies that publish more Sustainability Reporting.

scholarly journals Environmental Information Disclosure and Financial Performance – Empirical Evidence from Heavily Polluting Industries in China

2021 ◽  
Vol 261 ◽  
pp. 04038
Author(s):  
Jianfei Shen ◽  
Yidan Chen
Keyword(s):  
Financial Performance ◽  
Information Disclosure ◽  
Multiple Regression Model ◽  
Environmental Information ◽  
Environmental Accounting ◽  
Development Capacity ◽  
Current Asset ◽  
Environmental Information Disclosure ◽  
Asset Turnover ◽  
The Impact

Focusing on the quality of corporate environmental accounting information disclosure (EID), this paper attempts to explore the impact of financial performance on environmental information disclosure. We take listed companies in Chinese heavily polluting industries as the research object, and construct a multiple regression model for data analysis via SPSS. According to Chinese practice, we divide the financial indicators into four areas: solvency, operating capacity, profitability and development capacity, and select four indicators to represent them. The empirical results show that net working capital, current asset turnover and equity growth rate are positively correlated with EID, and return on total assets is negatively correlated with EID. This result means that the solvency, operating ability and development ability in financial performance can promote the improvement of EID, but profitability cannot.

The Value of Climate Change Reporting of Firms

2015 ◽  
Vol 6 (4) ◽  
pp. 90-103
Author(s):  
Constancio Zamora-Ramirez ◽  
Jose M. Gonzalez-Gonzalez
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Panel Data Analysis ◽  
Environmental Information ◽  
Conclusive Evidence ◽  
Share Price ◽  
Environmental Information Disclosure ◽  
The Relationship

Existing literature has not yet provided fully conclusive evidence on the relationship between the level of companies' carbon disclosure, as one type of environmental information disclosure, and their financial performance. This paper studies carbon disclosure through the Carbon Disclosure Project (CDP) and observes its effect on financial performance by means of a test double carried out in the Spanish financial market. Market response to the publication of CDP reports was monitored through an event study and studying how the CDP score impacts companies' share price using a model based in Ohlson, (1995) and developing a panel data analysis. The results confirm that the market responds to the disclosure of environmental information with an incremental effect on financial performance, which furthermore corroborates the fact that companies with better environmental performance have higher levels of environmental information disclosure, as predicted by the voluntary disclosure theory.

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