Factors influencing corporate sustainability disclosure practices: empirical evidence from Indian National Stock Exchange

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kishore Kumar ◽  
Ranjita Kumari ◽  
Archana Poonia ◽  
Rakesh Kumar
Keyword(s):  
Empirical Evidence ◽  
Information Disclosure ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Free Cash Flow ◽  
Government Ownership ◽  
Content Type ◽  
Flow Capacity ◽  
Sustainability Disclosure ◽  
The Impact

Purpose This study aims to evaluate the nature and extent of sustainability disclosure practices of publicly listed companies in India. Further, it investigates the impact of potential determinants on the sustainability disclosure of companies. Design/methodology/approach The study analyzes data of 75 top listed nonbanking companies operating in India included in NIFTY100 Index for the years 2014-2015 to 2018-2019. In the present study, environment, social and governance disclosure dimensions were considered to evaluate the sustainability reporting performance of companies using content analysis. Panel data analysis was conducted to investigate the impact of various factors on the extent of sustainability information disclosure. Findings Results indicate that environmentally polluting industries disclose significantly higher sustainability information than non-polluting industries in India. The empirical findings suggest that determinants such as company size, age, free cash flow capacity, government ownership and global reporting initiative (GRI) usage positively related to the extent of corporate sustainability disclosure. Contrary to the expectations, financial leverage and profitability were found to be negatively related to the sustainability disclosure of companies in India. Practical implications This study provides empirical evidence for regulators, practitioners and corporate strategists to assess the progress in the sustainability reporting landscape in India. The finding implies that large and established companies can reduce legitimacy costs through higher sustainability information disclosure. Interestingly, this premise did not hold in the case of high leveraged and profitable companies. Overall findings can also help policymakers to incorporate necessary reforms to improve sustainability reporting in India. Originality/value This study is one of the first studies to investigate the nature, extent and potential determinants of corporate sustainability disclosure in India. The paper adds to the existing literature on sustainability reporting by providing empirical evidence on the relationship between sustainability reporting and potential determinants such as government ownership, size, leverage, profitability, age, free cash flow capacity, industry and GRI usage.

The role of audit committee attributes in corporate sustainability reporting

2019 ◽  
Vol 21 (2) ◽  
pp. 249-264 ◽  
Author(s):  
Amina Buallay ◽  
Jasim Al-Ajmi
Keyword(s):  
Audit Committee ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Audit Committees ◽  
Content Type ◽  
Disclosure Requirements ◽  
Sustainability Disclosure ◽  
Financial Expertise ◽  
The Impact

Purpose The purpose of this paper is to analyze the extent to which sustainability reporting by banks in the Gulf Cooperation Council (GCC) is affected by the attributes of audit committees. Design/methodology/approach The research is positivist and quantitative, based on a cross-sectional and time series analysis of 59 banks from 2013 to 2017. A multivariate model is used to investigate the impact of selected audit committee attributes (financial expertise, size, members’ independence and meeting frequency) on sustainability reporting. The model is built on agency, legitimacy, resources and stakeholders theories. Findings In contrast to the hypothesis, the authors report a negative association between financial expertise and sustainability reporting. Members’ independence and meeting frequency play a positive role in determining the extent of disclosure. The control variables (bank size, age and auditor type) are positively associated with corporate sustainability reporting. Research limitations/implications The main limitations of this study are related to the chosen attributes of audit committee and do not consider the board’s attributes. However, the authors believe these limitations do not affect the findings. Future research that includes more attributes when they became available will offer more insights into the role of audit committees on sustainability disclosure of financial institutions. Overcoming these limitations may make the results more generalizable. Practical implications The results of this study have important implications for regulators, bank management, investors and creditors. For regulators, in the countries of the GCC and in countries like them, the findings reveal the importance of disclosure requirements. The development of disclosure requirements is likely to improve corporate sustainability reporting and reduce variations in the extent of disclosure among banks. Banks could use these results to improve their reporting to outsiders. For creditors and investors, the study improves their awareness of the importance of corporate social responsibility, corporate governance and environmental information on credit and investment decisions and encourages banks to improve their disclosures of non-financial information. Originality/value This research makes a contribution to the scarce literature on sustainability reporting by banks, especially in an environment where capital markets lack active institutional investors, where regulators play the dominant role in determining the extent of disclosure and where banks are the main source of external finance for the corporate sector.

Consequences of corporate sustainability reporting: evidence from an emerging market

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.

scholarly journals Sustainability Reporting Quality of Peruvian Listed Companies and the Impact of Regulatory Requirements of Sustainability Disclosures

2020 ◽  
Vol 12 (3) ◽  
pp. 1135 ◽  
Author(s):  
Cristian R. Loza Adaui
Keyword(s):  
Empirical Evidence ◽  
Latin American ◽  
Qualitative Content Analysis ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Third Party ◽  
Regulatory Requirements ◽  
Reporting Practices ◽  
Sustainability Disclosure ◽  
The Impact

Regulations establishing mandatory sustainability reporting practices are proliferating around the world. The empirical evidence comparing sustainability reporting quality (SRQ) in the context of mandatory and voluntary institutional frameworks does not show consensus. Similarly, this occurs with studies addressing the effects of regulatory shocks on SRQ. Moreover, empirical evidence addressing SRQ in Latin American countries is scarce. To fill this gap, this study aims to explore the consequences of introducing new regulatory requirements for sustainability disclosure on SRQ of Peruvian companies. To reach that goal, 81 sustainability disclosure documents published between 2014 and 2016 by 27 companies included in the S&P/BVL Peru General Index of Lima’s Stock Exchange were analyzed using qualitative content analysis methods and adopting a multidimensional approach for SRQ evaluation. The findings show a constant improvement of SRQ regardless of the introduction of the new regulatory requirements. Furthermore, after the entry into force of new sustainability reporting obligations, the number of companies providing third-party independent assurance of the information contained in their sustainability disclosure documents decreases, suggesting that for the Peruvian case, regulatory requirements tend to discourage companies to invest in the credibility of their sustainability disclosure documents, and promote a symbolic application of sustainability disclosure standards.

Corporate sustainability disclosure’s importance in China: financial analysts’ perception

2019 ◽  
Vol 16 (8) ◽  
pp. 1169-1189
Author(s):  
Jhunru Zhang ◽  
Hadrian Geri Djajadikerta ◽  
Terri Trireksani
Keyword(s):  
Corporate Sustainability ◽  
Financial Analysts ◽  
Health And Safety ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Environmental Aspect ◽  
Content Type ◽  
Sustainability Disclosure ◽  
The Social ◽  
Level Of Importance

Purpose Corporate sustainability in China has become a subject of increasing international concern. Corporate sustainability disclosure (CSD) is considered a useful tool to facilitate the empowerment and acknowledgement of stakeholders in the quest for sustainability. However, the degree of cultural and political influences for being sustainably orientated can be significantly different between countries. This study aims to examine the perception of financial analysts, as CSD report users, in China about the level of importance of various indicators of corporate sustainability described in the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. Design/methodology/approach A set of questionnaires was developed based on GRI G4 guidelines to measure the perception of financial analysts in China on the level of importance of each sustainability indicator described in the GRI G4. A five-point Likert scale was used to measure the report users’ perceptions of each of the indicators. Findings The findings of this study increase our understanding of how Chinese CSD report users perceive corporate sustainability differently from the GRI guidelines. The main results show that the environmental aspect of sustainability was seen to be important in China, followed by the social and economic aspects. Indicator-wise, “water”, “effluents and waste”, “emissions”, “compliance” and “energy” were perceived as vital in the environmental category, while “customer health and safety”, “customer privacy” and “compliance” were considered significant in the social category. Originality/value This study addresses the need for differing corporate sustainability guidelines for different nations and cultures, specifically within the Chinese context. It also contributes to the corporate sustainability literature by adding to our understanding of how financial analysts in China, as CSD report users, perceive aspects of sustainability.

scholarly journals Sustainability Reporting by Firms in the Nigerian Economy: Social versus Environmental Disclosure

2017 ◽  
Vol 3 (2) ◽  
pp. 87-112 ◽  
Author(s):  
Alhassan Haladu ◽  
Basariah Bt. Salim
Keyword(s):  
Information Disclosure ◽  
Current Trend ◽  
Sustainability Reporting ◽  
Social Reporting ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Sustainability Disclosure ◽  
Environmentally Sensitive ◽  
Social And Environmental Reporting ◽  
The Impact

Purpose: There is need for specialization on individual categories of sustainability information disclosure.  An attempt has been made in this study to make a comparison between the environmental and social categories of sustainability disclosure. Methodology: Guided by the G4 sustainability reporting guidelines, environmentally sensitive companies in the Nigerian economy were analyzed for 6 years (2009-2014).  Separate assessments and comparisons were made between environmental reporting and social reporting on the impact, influence and significance of their relationships using Stata13SE analytical tool. Findings: The results shows that firms performed better on social reporting than on environmental reporting in terms of higher sustainability disclosure rates and significant relationships. Research Implications: The current trend of reporting sustainability information disclosure under both social and environmental reporting is encouraging considering the fact that disclosure on sustainability issues in Nigeria is voluntary. Practical Implications: Firms in environmentally sensitive sectors are disclosing sustainability information than expected. Originality/Value: The uniqueness in comparing sustainability disclosures between environmental information and social information.

scholarly journals Online sustainability information disclosure of mold companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elisabete Correia ◽  
Susana Garrido ◽  
Helena Carvalho
Keyword(s):  
Information Disclosure ◽  
Information Dissemination ◽  
Corporate Sustainability ◽  
Industrial Sector ◽  
Economic Dimension ◽  
Content Type ◽  
Corporate Website ◽  
Analysis Methodology ◽  
Corporate Websites ◽  
Sustainability Disclosure

PurposeThe study aims to improve the understanding of the online sustainability disclosure phenomena considering the quantity and nature of the content of the information related to sustainability disclosed in the corporate website of companies, providing evidence about the website sustainability disclosure of different size companies and characterizing the website sustainability disclosure of the Portuguese mold companies.Design/methodology/approachA content analysis methodology was used to the corporate websites of 83 companies in the sample. A direct approach was followed where the researcher is asked to read and classify the text in a previously defined category, but where the possibility of identifying new categories from the collected data is not excluded.FindingsThe information on sustainability disclosed by the mold companies is limited, whether in quantity or concerning the type of information. The information disclosed about environmental and social aspects is scarcer, being the focus more on aspects related to the economic dimension of sustainability, particularly in the areas related to products and services and customers.Research limitations/implicationsThe research design can be broadened to include other sustainability dissemination tools and other research methodologies, such as case studies, to provide a deeper understanding of the concerns and initiatives/practices of sustainability of mold companies.Practical implicationsThis study contributes to the knowledge of sustainability dissemination practices in SMEs, an area of research that needs to be more explored and, in an industrial sector (molds) that have not received much attention in this area.Originality/valueBased on the premise of the importance of corporate sustainability communication, the study focuses on the Internet as an information dissemination tool. It provides indications on the theme and information type that can be used to report the company's sustainability.

scholarly journals Governmental Ownership of Voluntary Sustainability Information Disclosure in an Emerging Economy: Evidence from Vietnam

2020 ◽  
Vol 12 (16) ◽  
pp. 6686
Author(s):  
Hang Thi Thuy Pham ◽  
Sung-Chang Jung ◽  
Su-Yol Lee
Keyword(s):  
Corporate Governance ◽  
Information Disclosure ◽  
Social Information ◽  
Sustainability Reporting ◽  
Emerging Economy ◽  
Government Ownership ◽  
Institutional Perspective ◽  
Corporate Governance Mechanisms ◽  
Sustainability Disclosure ◽  
Positive Effect

Emerging economies have increasingly paid attention to sustainability issues in the business circle. However, few studies have explored what facilitates sustainability information disclosure. This study examines how corporate governance mechanisms, particularly government ownership, affect sustainability disclosure in an emerging economy—Vietnam. By combining related research streams, including stakeholder theory, institutional perspective, and principal–agent theory, we present a hypothesis on the effect of corporate governance on sustainability reporting. The logistic regression analysis and analysis of variance on 2678 Vietnamese sample firm-years from 2010 through 2016 indicate that government ownership is negatively associated with voluntary environmental and social information disclosure. Additionally, they demonstrate that ownership concentration tends to lower non-financial information disclosure, while individual largest shareholder has a positive effect. These findings provide managers and policymakers with theoretical and practical implications to encourage firms in emerging Asian economies such as Vietnam to adopt sustainability activities and disclose social information.

Does corporate sustainability impact firm profitability? Evidence from India

2018 ◽  
Vol 56 (8) ◽  
pp. 1734-1747 ◽  
Author(s):  
Shernaz Bodhanwala ◽  
Ruzbeh Bodhanwala
Keyword(s):  
Empirical Evidence ◽  
Developing Economies ◽  
Corporate Sustainability ◽  
Empirical Support ◽  
Policy Formulation ◽  
Content Type ◽  
Thomson Reuters ◽  
Firm Profitability ◽  
The Impact

Purpose The purpose of this paper is to study whether corporate sustainability impacts profitability performance. Design/methodology/approach The sample under study consists of 58 Indian firms that are consistently a part of Thomson Reuters Asset 4 ESG database. An empirical multivariate panel data model is developed to analyse the impact of sustainability (environmental, social and governance) on firm profitability. Further, the study seeks to understand whether firms ranked high on sustainability parameters perform better compared to low-ranked firms. This has been tested by applying parametric t-test. Findings The study reveals a significant positive relationship between sustainability and firm performance measures (return on invested capital, return on equity, return on assets and earnings per share). Empirical evidence suggests that firms that practice remarkable sustainable development strategies report higher profitability and have substantially low gearing level. Research limitations/implications This study provides empirical support for the practitioners, policy makers and academicians emphasising strongly on the role played by deployment of sustainable environmental, social and governance efforts in enabling firms to achieve the profit maximisation objective. In the long term, strategies that take sustainability criteria into account have the capacity to create long-term value and provide firms with competitive advantage. The findings provide impetus to many mid- and large-capitalised Indian firms to initiate the adoption of sustainable measures in business policy formulation. The market valuation perception on sustainability practices followed by Indian firms leaves scope for future research. Originality/value Empirical evidence on the link between sustained sustainability efforts by corporates and their profitability from a developing nation context is limited. This paper provides much-needed evidence in the area of sustainability performance from India – one of the largest, rapidly developing economies in the world.

Board involvement in corporate sustainability reporting: evidence from Sri Lanka

2018 ◽  
Vol 18 (6) ◽  
pp. 1042-1056 ◽  
Author(s):  
Nayana Chandani Swarnapali Rathnayaka Mudiyanselage
Keyword(s):  
Resource Dependence ◽  
Corporate Sustainability ◽  
Binary Logistic Regression ◽  
Sustainability Reporting ◽  
Resource Dependence Theory ◽  
Sri Lankan ◽  
Content Type ◽  
Sustainability Disclosure ◽  
The Board Of Directors ◽  
Asian Context

Purpose The purpose of this paper is to explore the role played by the board of directors in corporate sustainability (CS) disclosure within the Asian context in which sustainability reporting (SR) is an emerging phenomenon. Design/methodology/approach Data are collected from a sample of 100 listed Sri Lankan companies over a period of four years (2012-2016), representing practically all the business sectors. This study draws on both agency and resource dependence theories, while binary logistic regression is performed for the data analysis. Findings The results point out that firms that follow a sustainability disclosure policy have larger boards, a higher proportion of independent directors and more female directors. Contrary to certain common assumptions, firms that practice sustainability disclosure are not influenced by dual leadership, board ethnicity and board ownership. This study helps firms to understand whether their boards can influence the sustainability disclosure choice or not and further, to validate the appropriateness of the agency theory and the resource dependence theory for examining issues of this nature. Originality/value This study contributes significantly to the extant literature on this subject by broadening the geographical coverage, which has generally been limited to the West in corporate disclosure studies.

Corporate disclosure on anti-corruption practice

2018 ◽  
Vol 25 (4) ◽  
pp. 1077-1093 ◽  
Author(s):  
Ayman Issa ◽  
Antonio Alleyne
Keyword(s):  
Information Disclosure ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Corporate Disclosure ◽  
Content Type ◽  
Gulf Countries ◽  
Analysis Technique ◽  
Sustainability Reports ◽  
External Forces ◽  
Insight Into

PurposeThis paper aims to determine the extent of anti-corruption information disclosure in the sustainability reports originating from Gulf countries.Design/methodology/approachThis study utilizes a deeply rooted content analysis technique of corporate sustainability reporting, covering 66 Gulf Cooperation Council (GCC) firms during 2014.FindingsStrengthened by the application of the institutional theory, insight into the results points to a state of limited maturity regarding the disclosure of anti-corruption procedures in the region. More specifically, the results highlight the compliance in the reporting of conduct code, while reporting information on whistleblowing was significantly less in comparison. Firms in Qatar and the UAE ultimately release better informed reports, inclusive of detailed information on internal anti-corruption practices.Originality/valueThe aim of this study is to determine the extent of sustainability reporting in GCC companies under coercive isomorphism concept, with a special interest in the disclosure of anti-corruption practices. Ultimately, addressing the following questions: To what extent the GCC companies disclose their anti-corruption practices in the sustainability reports? What areas of anti-corruption disclosure the GCC is more concerned in their sustainability reports? To what extent do external forces under coercive isomorphism explain the extent of anti-corruption?

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