Corporate sustainability disclosure and market valuation in a Middle Eastern Nation: evidence from listed firms on the Tehran Stock Exchange: sensitive industries versus non-sensitive industries

This paper examined the stance of independent directors on corporate sustainable development initiative in South Africa and Nigeria. This has become apposite considering the role of independent directors in corporate strategic decisions and performance. It is believed that independent boards strive to direct corporate decisions to protect the investors and thus improve financial performance. Given that sustainability initiative is currently occupying a vital strategic position in protecting firms against inherent and imminent climate change and financial risks, the paper undertakes a survey of South African and Nigerian companies to ascertain the role of independent directors on corporate sustainable development initiatives. Using a mix method of primary and secondary data analysis, the paper finds that independent boards in both countries of study understand the importance of sustainability; however a pragmatic stance on sustainability is more visible in South Africa where independent boards are members of and/or participate in nominating corporate sustainability committees. The paper suggests the need for improved detailed disclosure on sustainability in the Nigerian corporate annual reports; the Nigerian Stock Exchange may boost this initiative by establishing a social and environmental reporting index supported by an annual survey of company sustainability disclosure. It also suggests the need to include sustainability awareness and interest in the metrics that are used in the appointment of independent boards in Nigerian companies

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Consequences of corporate sustainability reporting: evidence from an emerging market

International Journal of Law and Management ◽

10.1108/ijlma-12-2017-0294 ◽

2020 ◽

Vol 62 (3) ◽

pp. 243-265

Author(s):

RMNC Swarnapali

Keyword(s):

Financial Reporting ◽

Firm Value ◽

Stock Exchange ◽

Emerging Market ◽

Earnings Quality ◽

Corporate Sustainability ◽

Market Value ◽

Sustainability Reporting ◽

Content Type ◽

Sustainability Disclosure

Purpose The purpose of this paper is to discover whether corporate sustainability disclosure has a potential impact on the market value and earnings quality of firms in an emerging market. Design/methodology/approach The data were collected from 220 companies listed in the Colombo Stock Exchange (CSE) in Sri Lanka during the period 2012-2016. Firm value proxies by Tobin’s Q, while earnings quality proxies by discretionary accruals (DAC). The study is premised on value-enhancing theory for firm value and transparent financial reporting perspective for earnings quality. Regression analyses are executed on the panel data to achieve the study objectives. Findings The results reveal a positive relationship between sustainability reporting (SR) and firm market value, accepting the value-enhancing theory while rejecting the value-destroying theory. This finding suggests that investors pay a premium in the financial markets for firms that perform in an environmentally and socially responsible manner, compared to firms that do not perform in a similar manner. In the same vein, the results reveal that sustainability disclosure and DAC are negatively and significantly associated, resulting in high-quality earnings. The result is consistent with the transparent financial reporting hypothesis, which is also in line with the managers’ integrity motivation. Originality/value This is the first study investigating the consequences of SR that is specific to the Sri Lankan context. Owing to the sparse studies on consequences of SR, this study contributes significantly to the extant literature by broadening the geographical coverage to include a developing country setting.

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Effect of Intellectual Capital, Corporate Sustainability Disclosure, and Corporate Governance To The Value of The Company: Empirical Study on Registered SOE in Indonesia Stock Exchange

Jurnal Ilmu Manajemen & Ekonomika ◽

10.35384/jime.v10i2.77 ◽

2018 ◽

Vol 10 (2) ◽

pp. 35

Author(s):

Ronald Tauviek Andi Kasim ◽

Djokosantoso Moeljono ◽

Jangkung Handoyo Mulyo

Keyword(s):

Corporate Governance ◽

Intellectual Capital ◽

Stock Exchange ◽

Corporate Sustainability ◽

Company Size ◽

Control Variables ◽

Corporate Values ◽

Sustainability Disclosure ◽

Corporate Social ◽

Determine Effect

The main purpose of the company’s operation today is to maximize the value of the company. Corporate value is not only influenced by economic performance, but can come from performance derived from social activities. But in reality, it eventually leads to a conflict of interest that occurs within the company, so that necessary to implement mechanisms to reduce the conflict. The purpose of this research to provide evidence to determine effect of intellectual capital, corporate sustainability disclosure, and corporate governance to corporate values with company size and leverage as control variables. This research can provide benefits as knowledge related to how wide the company pursues intellectual capital, corporate social responsibility, and corporate governance in increasing the value of the company. This research samples is focused on state owned enterprises listed in Indonesia Stock Exchange for period 2013 – 2016 with total 48 data used in this research. This research use multiple regression to test the hypothesis. The result of this research is intellectual capital and corporate sustainability disclosure have positively influence towards corporate values. Corporate governance has no influence towards corporate values. For control variables, company size has no influence towards corporate values and leverage has negatively influence towards corporate values.

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The Relationship between Corporate Sustainability Disclosure and Firm Financial Performance in Johannesburg Stock Exchange (JSE) Listed Mining Companies

Sustainability ◽

10.3390/su11164496 ◽

2019 ◽

Vol 11 (16) ◽

pp. 4496 ◽

Cited By ~ 3

Author(s):

Tafadzwa Mark Wasara ◽

Fortune Ganda

Keyword(s):

Return On Investment ◽

Stock Exchange ◽

Corporate Sustainability ◽

Environmental Disclosure ◽

Corporate Social Disclosure ◽

Johannesburg Stock Exchange ◽

Sustainability Disclosure ◽

Corporate Social ◽

The Relationship ◽

Social Disclosure

Whether corporate sustainability disclosure (CSD) affects profitability remains indistinct to many firms. This paper examines the relationship between corporate sustainability disclosure and return on investment. The sample of this study consisted of ten Johannesburg Stock Exchange (JSE)-listed mining companies, and the data was extracted from sustainability reports for a period of five years from 2010 to 2014. In this regard, data collection was undertaken by the adoption of a content analysis approach. A multi-regression analysis was used to analyze the relationship between environmental disclosure and return on investment. The same statistical mechanism was employed to determine the association involving social disclosure and return on investment. Results show that there is a negative relationship between environmental disclosure and return on investment. On the other hand, the research reveals that there is also a positive association between social disclosure and return on investment. This implies that an increase in corporate reporting of social issues results in heightened financial performance through an increase in return on investment. This study recommends the adoption of corporate social disclosure as it will encourage firms to be socially responsible, while also generating financial benefits. Further studies can be conducted about the change from voluntary corporate social disclosure to mandatory disclosure.

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PENGARUH KARAKTERISTIK PERUSAHAAN DAN CORPORATE GOVERNANCE (CG) TERHADAP PENGUNGKAPAN SUSTAINABILITY REPORT

Jurnal Kajian Akuntansi dan Auditing ◽

10.37301/jkaa.v0i0.5127 ◽

2012 ◽

Author(s):

Gita Maya Safira ◽

Novia Rahmawati

Keyword(s):

Corporate Governance ◽

Quantitative Analysis ◽

Firm Size ◽

Audit Committee ◽

Stock Exchange ◽

Corporate Sustainability ◽

Firm Age ◽

Sustainability Disclosure ◽

Size Firm ◽

Sustainability Report

This study aims to determine the influence of company characteristics and disclosure practices of corporate governance to corporate sustainability report on manufacturing in Indonesia Stock Exchange. In this study the sample was 48 companies manufacturing in Indonesia Stock Exchange. Type of data used secondary adala obtained from the Indonesian Capital Market of Directory (ICMD) and the Annual Report. Observation period is used of the year 2006 to 2010. In this study the researchers classifying the research variables menjad two main groups. The first independent variable consisting of leverage, aktitas ratio, firm size, firm age and the audit committee. The second is the dependent variable is the practice of sustainability disclosure report. The method used is a quantitative analysis that is processed by using the method of quantitative analysis. Based on the results of hypothesis testing study found that each used variable is leverage, activity ratio, firm size, firm age and the audit committee had no significant effect on the sustainability report disclosure practices of manufacturing firms in Indonesia Stock Exchange.

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Effect of Intellectual Capital, Corporate Sustainability Disclosure, and Corporate Governance To The Value of The Company: Empirical Study on Registered SOE in Indonesia Stock Exchange

Jurnal Ilmu Manajemen & Ekonomika ◽

10.35384/jime.v10i2.75 ◽

2018 ◽

Vol 10 (2) ◽

pp. 60

Author(s):

Kenny Ardillah

Keyword(s):

Corporate Governance ◽

Intellectual Capital ◽

Stock Exchange ◽

Corporate Sustainability ◽

Company Size ◽

Control Variables ◽

Corporate Values ◽

Sustainability Disclosure ◽

Corporate Social ◽

Determine Effect

The main purpose of the company's operation today is to maximize the value of the company. Corporate value is not only influenced by economic performance, but can come from performance derived from social activities. But in reality, it eventually leads to a conflict of interest that occurs within the company, so that necessary to implement mechanisms to reduce the conflict. The purpose of this research to provide evidence to determine effect of intellectual capital, corporate sustainability disclosure, and corporate governance to corporate values with company size and leverage as control variables. This research can provide benefits as knowledge related to how wide the company pursues intellectual capital, corporate social responsibility, and corporate governance in increasing the value of the company. This research samples is focused on state-owned enterprises listed in Indonesia Stock Exchange for period 2013 – 2016 with total 48 data used in this research. This research use multiple regression to test the hypothesis. The result of this research is intellectual capital and corporate sustainability disclosure have positively influence towards corporate values. Corporate governance has no influence towards corporate values. For control variables, company size has no influence towards corporate values and leverage has negatively influence towards corporate values.

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Examining the quantity and quality of online sustainability disclosure within the Jordanian industrial sector: a test of GRI guidelines

Problems and Perspectives in Management ◽

10.21511/ppm.17(4).2019.12 ◽

2019 ◽

Vol 17 (4) ◽

pp. 141-152

Author(s):

Tareq Bani-Khalid

Keyword(s):

Stock Exchange ◽

Corporate Sustainability ◽

Social Indicators ◽

Industrial Sector ◽

Sustainability Indicators ◽

Global Reporting Initiative ◽

Economic Changes ◽

Corporate Managers ◽

Sustainability Disclosure

Reporting on corporate sustainability practices as being in congruence with social expectations is the core idea of legitimacy theory. Therefore, nowadays many organizations are making efforts to inform their stakeholders about the social, environmental and economic changes in their performance. Consistent with the argument above, this paper aims to examine the quantity and quality of corporate online sustainability information of the industrial sector in Jordan based on the Global Reporting Initiative guidelines. In line with content analysis method, this paper analyzes the quantitative sustainability indicators disclosed during last 7 years (2012–2018) by all the industrial sub-sectors listed on the website of Amman Stock Exchange. The results revealed that although all Jordanian industrial sub-sectors practice of the quantitative sustainability disclosure is in a modest degree in the period of 2012–2018, the emphasis on environmental and economic indicators was less than on social indicators in the corporate online reports. Results on qualitative analysis indicated that, considering all sustainability indicators, only the disclosure on indirect economic impacts, procurement practices, product responsibility, and economic performance have been reported at satisfactory levels of quality but with no compliance of GRI guidelines. According to the obtained results, policy makers in the Jordanian industrial sector should be very important players in order to open the channels of dialogue with corporate managers on the importance of their role in taking more responsibility for their non-financial operations. Consequently, this should ensure more transparent accountability through more quantitative and qualitative sustainability disclosure in the corporate reports.

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Is Voluntary Disclosure Value Relevant? Evidence from Top Listed Firms in India

Vision The Journal of Business Perspective ◽

10.1177/0972262920986293 ◽

2021 ◽

pp. 097226292098629

Author(s):

Rupjyoti Saha ◽

Kailash Chandra Kabra

Keyword(s):

Voluntary Disclosure ◽

Value Relevance ◽

Stock Exchange ◽

Market Value ◽

Policy Implications ◽

Positive Contribution ◽

Listed Firms ◽

Strategic Disclosure ◽

Relevant Evidence ◽

The Relationship

In view of ongoing reforms in India with emphasis on improving transparency of corporate, the present study aims to examine the influence of voluntary disclosure on the market value of India’s top-listed firms. To this end, the study uses a sample of top 100 non-financial and non-utility firms listed at Bombay Stock Exchange based on market capitalization over a 5-year period (2014–2018). To control potential endogeneity in the relationship between voluntary disclosure and firms’ market valuation, fixed effect panel data model and two-stage least squares model of estimation have been employed. The result obtained from the analysis suggests that enhanced level of voluntary disclosure significantly improves the market value of sample firms. The study further undertakes additional analysis by categorizing voluntary disclosure into its sub-components wherein the findings reveal that three components of voluntary disclosure such as corporate and strategic disclosure, forward looking disclosure and corporate governance disclosure make positive contribution towards market value of firms, while the remaining components of voluntary disclosure such as human and intellectual capital disclosure and financial and capital market disclosure do not appear to have any significant influence on the same. Overall, the finding suggests that voluntary disclosure made by sample firms is considered relevant by investors. However, value relevance of different components of voluntary disclosure varies with the nature and extent of information disclosed. The study offers some important policy implications.

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How Moroccan institutional investors view dividend policy

Managerial Finance ◽

10.1108/mf-06-2017-0215 ◽

2017 ◽

Vol 43 (12) ◽

pp. 1332-1347 ◽

Cited By ~ 5

Author(s):

H. Kent Baker ◽

Imad Jabbouri

Keyword(s):

Institutional Investors ◽

Stock Prices ◽

Dividend Policy ◽

Stock Exchange ◽

Mail Survey ◽

High Response Rate ◽

Content Type ◽

Listed Firms ◽

Dividend Policies ◽

Dividend Payments

Purpose The purpose of this paper is to examine how Moroccan institutional investors view dividend policy. It discusses the importance these investors attach to the dividend policy of their investee firms, how much influence they exercise in shaping investee firms’ dividend policies, their reactions to changes in dividends, and their views on various explanations for paying dividends. Design/methodology/approach A mail survey provides a respondent and firm profile and responses to 28 questions involving various explanations for paying dividends and 30 questions on different dividend issues. Findings Institutional investors attach substantial importance to dividend policy and prefer high dividend payments. Although liquidity needs are a major driver, taxes play little role in shaping dividend preferences. Respondents agree with multiple explanations for paying dividends giving the strongest support to catering, bird-in-the-hand, life cycle, signaling, and agency theories. Research limitations/implications Despite a high response rate, the number of respondents limits partitioning the sample and testing for significant differences between different groups. Practical implications The lack of communication between Casablanca Stock Exchange (CSE) listed firms and institutional investors may depress stock prices and increase volatility. The results suggest agency problems and a weak governance environment at the CSE. Originality/value This study documents the importance that institutional investors place on dividend policy, their reactions to changes in their investees’ dividend policy, and the methods used to influence these firms. It extends previous research by reporting the level of support Moroccan institutional investors give to various explanations for paying dividends.

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Hans Sicat and the Transformation at the Philippine Stock Exchange

Asian Case Research Journal ◽

10.1142/s0218927514500163 ◽

2014 ◽

Vol 18 (02) ◽

pp. 429-454

Author(s):

Manuel C. Dioquino

Keyword(s):

Stock Exchange ◽

Chief Executive ◽

Business Community ◽

Foreign Investors ◽

Listed Firms ◽

The Public ◽

Investment Banker ◽

The Board Of Directors ◽

The Subject ◽

Credibility Problem

The Philippine Stock Exchange, Inc. (PSE) was suffering a credibility problem in 2011. Just like the Philippine economy, the PSE was not performing well and the integrity of its leadership and decisions they made was being questioned by the public at large and the business community in particular. Hans Sicat, a retired investment banker, was invited to join the Board of Directors with a tacit agreement that he would be elected Chairman. Events thereafter led to Mr. Sicat's appointment as President and Chief Executive Officer of the bourse. Hans Sicat turns around the stock exchange successfully. How he makes it look seemingly simple is the subject of this case. Hans places all transformative efforts into two “bucket lists”. All of his efforts to increase the volume of trade in the exchange are classified under Liquidity, while all efforts to restore the integrity within the bourse and its listed firms, he refers to as Governance issues. The Philippine Stock Exchange, Inc. transformation does not go unnoticed by domestic and foreign investors, and other stakeholders as well. It breaks the 5,000 point barrier.

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