The Effect of Mandatory Publication of Nonfinancial Disclosure in Europe on Sustainability Reporting Quality: First Insights about Italian and German Companies

2020 ◽  
pp. 55-80
Author(s):  
Giorgio Mion ◽  
Cristian R. Loza Adaui
Keyword(s):  
Reporting Quality ◽  
Sustainability Reporting ◽  
Nonfinancial Disclosure

scholarly journals Mandatory Nonfinancial Disclosure and Its Consequences on the Sustainability Reporting Quality of Italian and German Companies

2019 ◽  
Vol 11 (17) ◽  
pp. 4612 ◽  
Author(s):  
Giorgio Mion ◽  
Cristian R. Loza Adaui
Keyword(s):  
Qualitative Content Analysis ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Nonfinancial Information ◽  
Reporting Practices ◽  
The Law ◽  
Social Environmental ◽  
One Year ◽  
Nonfinancial Disclosure

Companies disclosing nonfinancial information through sustainability reporting practices provide markets with data on their social, environmental, and governance performance. The quality of sustainability reporting is much discussed in the literature because this quality affects factors such as the credibility of accountability and building stakeholders’ trust in the company. Nonetheless, the concept of quality is multidimensional, and empirical evidence relating to the quality of sustainability reporting presents different findings. Regulations on mandatory nonfinancial disclosure (NFD) open new perspectives for research on sustainability reporting quality (SRQ). This study explored the effect of introducing mandatory NFD on SRQ by focusing on the effects of new legislation (Directive 2014/95/EU) introduced in Italy and Germany. The analysis was conducted through qualitative content analysis of the sustainability reporting practices of Italian and German companies in the top lists of stock exchanges. Sustainability reporting practices of one year before (2016) and one year after (2017) the implementation of Directive 2014/95/EU were compared. The results of 132 observations demonstrated that the quality of sustainability reporting increased after implementation of the law on mandatory NFD. Further, the effect of the law seemed to reduce the differences in SRQ of the two countries before the introduction of mandatory NFD. The results suggested that obligatoriness of NFD affects SRQ together with other relevant determinants focused on by previous research (e.g., company size and industry type).

scholarly journals Pengaruh Kualitas Pelaporan Keuangan Dan Sustainability Reporting Pada Efisiensi Investasi

2019 ◽  
pp. 188
Author(s):  
Ni Putu Lisna Vitriani ◽  
I. G. A. N. Budiasih
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Sampling Technique ◽  
Total Sample ◽  
Financial Reporting Quality ◽  
Investment Efficiency ◽  
Analysis Technique

The purpose of this study is to obtain empirical evidence regarding the effec of financial reporting quality and Sustainability Reporting on investment efficiency. This research was conducted on all non-financial companies listed on the Indonesia Stock Exchange in 2015-2017. The sampling technique used in this study was a purposive sampling. The samples taken were 16 companies with a total sample observation of 48 in 3 years. The data analysis technique used is Multiple Linear Regression. Based on the results of the study it is known that the higher the financial reporting quality of a company, the higher the level of efficiency of the company's investment and it is known that Sustainability Reporting has no effect on the efficiency of the company's investment. The results of this study are the practice of stakeholder theory and agency theory carried out by the company to maintain the long-term operational sustainability of the company. Keywords: Financial reporting quality, Sustainability Reporting, investment efficiency.

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.

Environmental Reporting Quality

2016 ◽  
pp. 625-654 ◽  
Author(s):  
Akrum Helfaya ◽  
Amr Kotb
Keyword(s):  
Reporting Quality ◽  
Sustainability Reporting ◽  
Third Party ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Policy Makers ◽  
Corporate Reporting ◽  
Business Practitioners ◽  
Global Initiatives

The ultimate question of most business practitioners and policy makers now is how to reduce corporate negative environmental performance. One of the most effective ways is to help corporations to set the Key Performance Indicators (KPIs) of their sustainability performance and to report these KPIs to their stakeholders using corporate reporting cycle. To improve the environmental reporting quality, companies generally adopt and follow widely recognized reporting guidelines and third-party assurance standards, thus improving their environmental disclosure quality and trustworthiness in minds of their stakeholders. Over the last two decades a number of global initiatives (e.g. GRI, ISO, DEFRA, AA1000 APS, and ISAE 3000) have been developed for use in sustainability reporting. This chapter, therefore, aims to shed light on these credibility initiatives developed by governmental and non-governmental bodies to improve the quality of environmental reporting and to see the extent to which these credibility initiatives are different or similar.

A proposed preliminary maturity grid for assessing sustainability reporting based on quality management principles

2019 ◽  
Vol 31 (3) ◽  
pp. 451-466 ◽  
Author(s):  
Raine Isaksson
Keyword(s):  
Quality Management ◽  
Value Chain ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Content Type ◽  
Student Assessments ◽  
Management Students ◽  
Stakeholder Needs ◽  
Further Development ◽  
Practical Implications

Purpose Sustainability reports (SRs) could be viewed as organisational measurements of sustainability performance. The purpose of this paper is to discuss how well SRs are measuring and communicating sustainability and how reporting could be assessed and improved by presenting a maturity grid based on quality management principles. Design/methodology/approach Quality management students have assessed publicly available SRs. A total of 55 student assessments have been analysed by the author and used to indicate how understandable reports are. Quality management principles and input from the student assessments have been used to propose a maturity grid for sustainability reporting quality. Findings The indication is that SRs are not easy to interpret. The word sustainability aspect used should be replaced with impact on vital stakeholder needs. Guidelines for analysing reports could be improved by using process focus to clearly describe scope of reporting as the entire value chain. Research limitations/implications Results are limited to assessing how sustainability is measured. How sustainable the organisations are is not assessed. The research is ongoing, and the proposed matrix is preliminary needing validation and further modification. Practical implications The proposed maturity grid for sustainability reporting forms a good basis for further development of SRs and the critical review of them. Social implications Results indicate a need to report sustainability in the entire value chain and to focus more on vital stakeholder needs such as poverty and climate change. Originality/value The paper discusses a field of synergies between quality and sustainability management, which is important but still sparingly researched.

Sustainability reports in Brazil through the lens of signaling, legitimacy and stakeholder theories

2017 ◽  
Vol 13 (1) ◽  
pp. 95-110 ◽  
Author(s):  
Hong Yuh Ching ◽  
Fábio Gerab
Keyword(s):  
Information Asymmetry ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Two Dimensions ◽  
Social Dimensions ◽  
Content Type ◽  
Environmental Dimension ◽  
Sustainability Reports ◽  
Corporate Social

Purpose The purpose of this paper is to extend the applicability of stakeholder, legitimacy and signaling theories by examining to what extent proactive corporate social responsibility disclosures are interrelated to attempt to gain and maintain legitimacy, to gain support of the stakeholders and to reduce information asymmetry. Design/methodology/approach To test the theoretical arguments, a longitudinal approach over a five-year period of 145 companies’ sustainability reports and statistical analysis was applied to investigate the evolution of their quality. Findings The results show a significant increase in the quality of sustainability reporting, and the experience gained while writing these reports can contribute to this. Based on signaling and legitimacy theories, this paper suggests that improvement in sustainability reporting quality acts as an important signal to gain legitimacy in case of information asymmetry during the legitimacy process. Th disclosure for economic and social dimensions is better than that of the environmental dimension, and the improvement in quality over time is the because of synergies and interlinkages more between these two dimensions of sustainability, and to a lesser extent because of the environmental dimension. Practical implications Firms should view investing in sustainability reporting disclosure as a strategy for obtaining business legitimacy. Originality/value The results of this paper are of interest for several reasons: extend and broaden the use of signaling in studying its use on sustainability reporting; the use of three theories is an appropriate framework for empirical analysis of sustainability reporting disclosure quality in Brazil; and add to the scarce evidence of sustainability reporting in Brazil.

scholarly journals A Comprehensive Measurement for Sustainability Reporting Quality: Principles-Based Approach

2020 ◽  
Vol 4 (2) ◽  
pp. 249
Author(s):  
Paulina Permatasari ◽  
Juniati Gunawan ◽  
Magdi El-Bannany
Keyword(s):  
Content Analysis ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Comprehensive Approach ◽  
Future Studies ◽  
Quality Principles ◽  
Quality Of Reports ◽  
Sustainability Reports ◽  
Comprehensive Measurement

This study presents a comprehensive approach to measure sustainability reporting quality (SRQ) and examines levels of SRQ. It was then used to measure SRQ in Indonesia. Based on reporting guidelines, the new comprehensive measurement for SRQ was developed by not only evaluating the extent of disclosures, but also by examining the quality. The content analysis was conducted to measure the level of SRQ using this comprehensive measurement. The samples are from stand-alone sustainability reports of companies. The results indicate that the overall score for SRQ was moderate. The score was derived using five aspects: the extent of quantitative reporting, the extent of qualitative reporting, the content of the report, the quality of the report, and sustainability reporting accordance. This proposed comprehensive SRQ measurement was used to examine the quantitative and qualitative aspects. This measurement will help academicians to examine the quality of reports and provide more credible assessments that can be used by practitioners to analyze the content of the report. Applying the SRQ measure to Indonesian companies empirically enriches the existing literature and creates a new platform for future studies. 

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