Sustainability reporting and market value growth of quoted companies in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oluwasikemi Janet Taiwo ◽  
Babatunde Ayodeji Owowlabi ◽  
Yemisi Adedokun ◽  
Grace Ogundajo
Keyword(s):  
Research Work ◽  
Market Value ◽  
Sustainability Reporting ◽  
Least Square ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Four Dimensions ◽  
Secondary Sources ◽  
Ex Post ◽  
Value Growth

Purpose This study aims to examine the effect of sustainability reporting on market value growth (MVG) of quoted companies in Nigeria. The corporate reporting system has evolved, and this study examined how it influences the perception of investors. Design/methodology/approach This study adopted an ex post facto research design with 167 listed firms as the population. A total of 28 quoted firms were chosen with the use of purposive sampling. Data from 2009 to 2018 were obtained from secondary sources. Content analysis was used as a tool to analyse the disclosures in sustainability reports. The model was estimated using pooled ordinary least square (multivariate regression). Company age and financial leverage were used as control variables. Findings This study found that the compliance level of the sampled firms with sustainability reporting requirements for the four dimensions are below average, and sustainability reporting does not have a significant effect on MVG with Prob. (F-stat) of 0.7212 > 0.05. Therefore, this study recommends that management should intensify efforts in ensuring maximum compliance with the sustainability reporting guideline of Global Reporting Initiative to reflect in their market value and ensure its growth. Originality/value To the best of the authors’ knowledge, this study is the original idea of the authors, although references were made to previous related study but it is a unique research work of its own. The work contained in this paper (in full and part) has not been previously submitted to any other journal for publication.

scholarly journals Sustainability Reporting: Imperative for Turnover Growth

2020 ◽  
pp. 8-18
Author(s):  
Adegbie Folajimi Festus ◽  
Akintoye Ishola Rufus ◽  
Taiwo Oluwasikemi Janet
Keyword(s):  
Multivariate Regression ◽  
Sustainability Reporting ◽  
Continuous Increase ◽  
Four Dimensions ◽  
Listed Firms ◽  
Secondary Sources ◽  
Reporting Requirements ◽  
Ex Post ◽  
Compliance Level ◽  
Ex Post Facto

Growth in revenue of firms is an indicator to stakeholders that the firm is improving. Thus, creating the need for firms to ensure a continuous increase in their turnover. This study examined the effect of sustainability reporting on turnover growth of quoted companies in Nigeria. The study adopted an ex-post facto research design with 167 listed firms as the population. 28 quoted firms were chosen with the use of purposive sampling. Data from 2009 to 2018 were obtained from secondary sources. Content analysis was employed as a tool to analyse the disclosures in sustainability reports. The model was estimated using Pooled OLS (multivariate regression). Company age and financial leverage were used as control variables. The study found that the compliance level of the sampled firms with sustainability reporting requirements for the four dimensions are below average, however, sustainability reporting has a significant effect on turnover growth with Prob. (F-stat) of 0.0463<0.05. Therefore, the study recommends that management of firms should intensity efforts to ensure maximum compliance with GRI sustainability guidelines.

Role of halal literacy and religiosity in buying intention of halal branded food products in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adil Khan ◽  
Mohd Yasir Arafat ◽  
Mohammad Khalid Azam
Keyword(s):  
Structural Equation ◽  
Research Work ◽  
Food Products ◽  
Partial Least Square ◽  
Least Square ◽  
Muslim Population ◽  
Content Type ◽  
Test Of Hypotheses ◽  
Halal Food ◽  
The Impact

Purpose This study aims to investigate the influence of religiosity (intrinsic and extrinsic) and halal literacy on the intention of Muslim consumers to purchase halal branded food products in India. An extended version of the theory of planned behaviour (TPB) was used as a framework. Apart from religiosity and halal literacy, the influence of attitude, social norms and perceived behavioural control of halal on buying intention were also tested. Design/methodology/approach The study uses a survey design. The data were collected from 350 individual respondents, using a closed-ended, structured questionnaire. The quality of the measurement model has been assessed through reliability testing, factor loading, average variance extracted and Fornell-Larcker criterion. The test of hypotheses was conducted by performing the partial least square structural equation modelling. Findings The result of hypotheses testing shows that both intrinsic and extrinsic types of religiosities did not have a direct influence on buying intention. However, religiosity (extrinsic and intrinsic) and halal literacy have significant relationships with most of the antecedents of the intention of the TPB. In addition, both kinds of religiosities (extrinsic and intrinsic) and halal literacy had a significant indirect effect (through TPB antecedents) on buying intention. Originality/value Muslim population in India is one of the largest in the world, yet there is a lack of popular halal branded food products in the market. Nevertheless, few researchers have attempted to study the consumer behaviour of the Muslim population for halal products in India. A large amount of research work on halal food behaviour is from countries such as Malaysia and Indonesia, where the Muslim population is in the majority and halal brands are already popular. Further, this paper studies the impact of dimensions of religiosity, which has been overlooked by researchers studying the halal food purchasing behaviour. The study also explores the impact of halal literacy, an understudied construct in halal marketing literature. The present study is amongst the earliest empirical research based on Muslim consumers in India on the topic of halal branded food products.

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 Reporting in the area of sustainable development in agribusiness

2019 ◽  
Vol 91 ◽  
pp. 06002 ◽  
Author(s):  
Guzaliya Klychova ◽  
Alsou Zakirova ◽  
Elvira Sadrieva ◽  
Fayaz Avkhadiev ◽  
Aigul Klychova
Keyword(s):  
Sustainable Development ◽  
Financial Reporting ◽  
Social Activity ◽  
Research Work ◽  
Sustainability Reporting ◽  
Comparison Method ◽  
Global Reporting Initiative ◽  
Scientific Methods ◽  
Reporting Structure ◽  
General Scientific

The aim of the present article is substantiation of theoretical provisions and development of practical recommendations for reporting in the field of sustainable development formation in compliance with the international standard “Guidelines for sustainability reporting” elaborated within the scope of Global Reporting Initiative. The research objectives are as follows: to study the content of non-financial reporting generated in compliance with the GRI guidelines and to offer new methodological approaches towards sustainability reporting formation. Using such general scientific methods as systematic approach, comparison, method of systematization and generalization of data, the research work revealed the essence, content, principles of formation and reporting structure in the field of sustainable development. The work contains recommendations on social activity of accounting organization with the use of information technology, such as: supplementary invoices application for accounting and development of forms for reports containing information of social character.

scholarly journals Sustainability reporting challenges in developing countries: towards management perceptions research evidence-based practices

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Venancio Tauringana
Keyword(s):  
Developing Countries ◽  
Research Evidence ◽  
Sustainability Reporting ◽  
Policy Formulation ◽  
Global Reporting Initiative ◽  
Evidence Based ◽  
Evidence Based Practices ◽  
Content Type ◽  
Awareness Campaigns ◽  
The Impact

PurposeThe purpose of this paper is threefold. First, it aims to identify managerial perceptions-based research determinants of sustainability reporting. Second, it sets out to evaluate the impact of the Global Reporting Initiative (GRI) efforts in increasing SR in developing countries. Third, the researcher argues for the adoption of management perceptions research evidence-based practices (EBP) to address SR challenges in developing countries.Design/methodology/approachThe study was undertaken using a desk-based review of management perceptions-based research literature on the determinants of SR. The impact of GRI efforts in increasing adoption of SR was undertaken through both desk-based research and descriptive analysis of data obtained from the GRI database from 2014 to 2019 relating to 107 developing countries. The call for the adoption of management perceptions research EBP is based on a critical analysis of both the management perceptions of the determinants of SR research and evaluation the impact of GRI efforts to increase SR in developing countries.FindingsTraining, legislation, issuing of guidance, stakeholder pressure, awareness campaigns, market and public pressure were identified as some of the determinants of SR. The evaluation of the impact of GRI efforts shows they had limited impact on increasing SR in developing countries. Research needed to adopt management perceptions research EBP is identified.Research limitations/implicationsThis study is conceptual. Management perceptions-based research is needed in more developing countries to better understand the determinants of SR and identify the most effective policies or practices to address related challenges.Originality/valueThe findings contribute to the calls to make academic research more relevant to policy formulation. In particular, the proposal for research needed to inform EBP adoption to address SR challenges in developing countries is new.

scholarly journals Coverage of G4-indicators in GRI-sustainability reports by electric utilities

2020 ◽  
Vol 32 (3) ◽  
pp. 359-378 ◽  
Author(s):  
Johannes Slacik ◽  
Dorothea Greiling
Keyword(s):  
Stakeholder Theory ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Electric Utility ◽  
Electricity Sector ◽  
Global Reporting Initiative ◽  
Bottom Line ◽  
Content Type ◽  
Sustainability Reports ◽  
Coverage Rates

PurposeElectric utility companies (EUC) are expected to play a key role toward implementing ambitious climate change aims being under critical scrutiny by regulators and stakeholders. However, EUC provide an under-researched field regarding sustainability reporting with the focus on economic, social and ecological concerns. This paper aims to gain insights of the sustainability reporting practice of EUC and the coverage of indicators based on the Global Reporting Initiative (GRI)-Guidelines.Design/methodology/approachA twofold documentary analysis of 186 GRI-G4 sustainability reports by EUC globally is conducted to investigate the coverage rates of G4-indicators. Neo-institutionalism and strategic stakeholder theory serve as theoretical lenses. A regression analysis is used to examine ownership, stock-exchange listing, area of activity and region as potential drivers of sustainability reporting.FindingsResults show that the coverage of indicators based on triple-bottom-line dimensions is moderate in EUC leaving room for improvement. The coverage of sector-specific indicators lacks behind the coverage of standard disclosure indicators. Results show that private and listed EUC show better coverage rates than public and not-listed EUC.Research limitations/implicationsNeo-institutionalism shows limited homogenization in the sector. Strategic stakeholder theory demonstrates insufficient stakeholder compliance of public and not-listed EUC.Originality/valueThis study contributes to sustainability reporting research by focusing on the under-researched electricity sector. It provides practical reporting insights for EUC, the GRI and regulators.

“Green washing” or “authentic effort”? An empirical investigation of the quality of sustainability reporting by banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Habib Zaman Khan ◽  
Sudipta Bose ◽  
Abu Taher Mollik ◽  
Harun Harun
Keyword(s):  
Social Performance ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Performance Factors ◽  
Holistic Understanding ◽  
Regulatory Guidelines ◽  
External Reporting ◽  
The Impact

PurposeThis study explores the quality of sustainability reporting (QSR) and the impact of regulatory guidelines, social performance and a standardised reporting framework (using the Global Reporting Initiative [GRI] guidelines) on QSR in the context of banks in Bangladesh.Design/methodology/approachUsing a sample of 315 banking firm-year observations over 13 years (2002–2014), a content analysis technique is used to develop the 11-item QSR index. Regression analysis is used to test the research hypotheses.FindingsInitially, QSR evolved symbolically in Bangladesh's banks but, over our investigation period, with QSR indicators gradually improving, the trends became substantive. The influences on QSR were sustainable banking practice regulatory guidelines, social performance and use of the GRI guidelines. However, until banks improve reporting information, such as external verification and trends over time, QSR cannot be regarded as fully substantive.Research limitations/implicationsThis study advances QSR research and debate among academic researchers. With regulatory agencies and stakeholders increasingly using sustainability reporting information for decision making, the information's quality is vital.Originality/valueThis study is the first on QSR in the banking industry context, with previous research mostly investigating the quantity of sustainability reporting. The current study also synthesises QSR with sustainability regulation and social performance factors which have rarely been used in the sustainability literature. To gain a holistic understanding of QSR, existing QSR measures are advanced by combining external reporting efforts with banks' internalisation initiatives.

Assessing the materiality of university G4-sustainability reports

2019 ◽  
Vol 31 (3) ◽  
pp. 364-391 ◽  
Author(s):  
Melanie Lubinger ◽  
Judith Frei ◽  
Dorothea Greiling
Keyword(s):  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Sociological Institutionalism ◽  
Content Type ◽  
External Stakeholder ◽  
Stakeholder Groups ◽  
Content Selection ◽  
Reporting Practice ◽  
Sustainability Reports ◽  
The University

Purpose Materiality, as a content-selection principle, is an emerging trend in sustainability reporting for making sustainability reports (SRs) more relevant for stakeholders. The purpose of this paper is to investigate whether materiality matters in the reporting practice of universities which have adopted the Global Reporting Initiative G4 Guidelines. Design/methodology/approach Strategic stakeholder theory and sociological institutionalism serve for deriving conflicting expectations about the compliance of universities with the materiality principle. In the empirical section of this paper, content analyses are conducted on the documented material aspects, followed by a correlation analysis for examining to which extent the identified material aspects are reported in the SRs. Findings Although universities document G4-19 stakeholder-material aspects according to different relevance levels and for internal and external stakeholder groups, the identified material aspects are not appropriately reported in the SRs. The adoption of the materiality principle is a superficial one and therefore more in line with the expectations of sociological institutionalism. Research limitations/implications The main limitation for this study is the small number of university SRs available. The chance to make SRs more relevant by focusing on stakeholder-material aspects is not used. Originality/value This paper reports the first study looking at the compliance between the documented material aspects and the content of SRs in a particular challenging organisational field, the university sector. This paper also adds to the emerging theoretical discussion about the extent universities implement materiality in SRs.

Experience economy in ethnic cuisine: a case of Chengdu cuisine

2019 ◽  
Vol 122 (6) ◽  
pp. 1801-1817 ◽  
Author(s):  
Ivan K.W. Lai ◽  
Dong Lu ◽  
Yide Liu
Keyword(s):  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Experience Economy ◽  
Content Type ◽  
Four Dimensions ◽  
Tourist Satisfaction ◽  
Esthetic Experience ◽  
Practical Implications

Purpose The concept of experience economy states that customers seek experiences whether from products and services. Tourism is at the forefront of the experience economy because tourists are looking for staged experience encompassing the four realms (entertainment, educational, esthetic and escapism). The purpose of this paper is to empirically explore the effects of the experience economy on tourists’ word-of-mouth (WOM) in Chengdu cuisine through satisfaction and memory. Design/methodology/approach In total, 397 valid data were collected from the tourists who have experienced the ethnic cuisine in Chengdu. A partial least-square structural equation modeling technique was used to examine the research model. Findings The empirical results indicated that esthetic is the antecedent of the other three realms of experience economy; esthetic, educational and entertainment experiences influence satisfaction; four realms of experience economy influence memory; and satisfaction and memory ultimately influence WOM. Practical implications The findings of this study provide practical implications for operators of ethnic restaurants in designing their restaurants and menus, travel agencies in planning the tour itinerary and governments in using ethnic cuisine for destination marketing. Originality/value This study is a pioneer in studying the experience economy in the ethnic cuisine. It has identified the relationships between four dimensions of experience economy of ethnic cuisine, tourist satisfaction, memory and WOM toward ethnic cuisine in a tourist destination. It has also integrated the senses of Chinese cuisine (“sight,” “smell” and “taste”) into the measures of esthetic experience for studying experience economy in ethnic cuisine.

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.

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