Corporate Governance and Environmental Accounting Reporting in Selected Quoted African Companies

Being a destination for investors around the globe, there are increasing concerns about climate change, pollution and biodegradation as well as the disposition of companies towards reporting environmental concerns in Africa. This necessitated the interest in a comparative study of corporate governance mechanisms and environmental accounting reporting (EAR) in selected African quoted companies. Using ex-post facto research design, the study’s population comprised of quoted companies in six sectors located in four Africa countries (Egypt, Nigeria, Kenya and South Africa). A content analysis was carried out to obtain environmental disclosure and reporting score, while static panel regression model was used to analyse the data. Findings revealed that board committee has a significant influence on EAR in the African countries, board diversity in Kenya and Nigeria, board size in South Africa and Nigeria, board independence in Egypt and Kenya, and institutional ownership in Nigeria, Egypt and South Africa were found to have significant influence on EAR. This result implies that extant laws and codes on corporate governance should be followed, and most importantly, other countries studied should emulate South Africa and adopt integrated reporting and application of Global Reporting Initiative (GRI) index score in their corporate reporting.

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Corporate Governance, Integrated Reporting and Environmental Disclosure: Evidence from the South African Context

Sustainability ◽

10.3390/su12124820 ◽

2020 ◽

Vol 12 (12) ◽

pp. 4820

Author(s):

Antonio Corvino ◽

Federica Doni ◽

Silvio Bianchi Martini

Keyword(s):

South Africa ◽

Corporate Governance ◽

Human Rights ◽

Business Ethics ◽

South African ◽

Integrated Reporting ◽

Environmental Disclosure ◽

Ceo Duality ◽

Ethics Policy ◽

Corporate Social

This research aims to investigate how the adoption of King III can affect the corporate governance model of a sample of South African listed companies on the Johannesburg Stock Exchange (JSE). Particularly, we analyzed the influence of sustainability-related issues of the board of directors (BDs) on firm environmental disclosure, after the mandatory preparation of integrated reporting (IR). In addition, we also examined indepth whether some corporate social policies are able to condition the foregoing disclosure. The empirical study covers the period from 2010 (the first-time adoption of IR in South Africa) to 2015 (the earliest year of the release process regarding King Code of Governance Principles for South Africa 2009 (i.e., King III)). Data were collected by the Bloomberg database. With reference to the BDs features, great attention was paid to both business ethics policy and CEO duality. Instead, with regard to corporate social issues, we looked into the adoption of the policies pertaining to health and safety and the respect for human rights. Following the mandatory preparation of IR, our findings show a positive relationship between business ethics policy and firm environmental disclosure. Contrarily, CEO duality does not exert any effect over the earlier type of corporate reporting. Furthermore, empirical evidence substantiates the association between health safety and human rights policies that are very crucial in an emerging economy, such as South Africa, and firm environmental disclosure. The rationale of such results arguably resides in compliance with King III. Therefore, this study can provide interesting insights, given that its mandatory adoption might reveal an important turning point in the development of corporate governance codes, as well as being a “driver” for potential enhancements of firm environmental disclosure, inter alia, in line with the Sustainable Development Goal (SDG) 12.6.

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Environmental accounting disclosure practices of quoted manufacturing companies in Nigeria

Global Journal of Business Economics and Management Current Issues ◽

10.18844/gjbem.v11i1.5065 ◽

2021 ◽

Vol 11 (1) ◽

pp. 42-47

Author(s):

Temitope Mariam Worimegbe ◽

Timothy Oyewole

Keyword(s):

Stock Exchange ◽

Sampling Technique ◽

Environmental Accounting ◽

Annual Reports ◽

Global Reporting Initiative ◽

Manufacturing Companies ◽

Environmental Disclosure ◽

Ex Post ◽

Significant Difference ◽

Disclosure Practice

The study assessed the level of environmental disclosure practice of manufacturing companies in Nigeria. Anchored on the legitimacy theory, the ex-post facto research design was adopted by the study. The sample was drawn from the population of sixty quoted manufacturing companies on the floor of the Nigerian Stock Exchange as at 31 December, 2017 using the judgmental sampling technique. The study variables were sourced from the annual reports and the stand-alone environmental reports of the selected companies from 2007-2017. The Global Reporting Initiative (GRI) environmental disclosure index was adopted in assessing the disclosure practice of the companies over the years. The findings showed that the environmental disclosure practice of the quoted manufacturing companies was low in the areas of material, energy, emissions, effluent and waste, water and biodiversity. A good number of the manufacturing companies disclosed very well the theme “others” in the area of environmental expenditure and investment. The study further observed a non-significant statistical difference in the disclosure practice of manufacturing companies over the years (t = -1.440, p = .223). The study concluded that there exists no significant difference in the level of environmental disclosure practice of manufacturing companies in Nigeria from 2007 to 2017.

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Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

EuroMed Journal of Business ◽

10.1108/emjb-04-2021-0066 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Jamel Chouaibi ◽

Saida Boulhouchet ◽

Raghad Almallah ◽

Yamina Chouaibi

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Moderating Effect ◽

Integrated Reporting ◽

Board Diversity ◽

Content Type ◽

Board Characteristics ◽

Good Corporate Governance ◽

Corporate Social

PurposeThis paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this relationship is moderated by the corporate social responsibility.Design/methodology/approachData from a sample of 185 European firms selected from STOXX 600 Index between 2010 and 2019 are used to test the model using panel data and multiple regression. This paper is motivated by using panel data estimated feasible generalized least squares method. A multiple regression model is used to analyze the moderating effect of the corporate social responsibility on the association between board characteristics, good corporate governance and the IRQ.FindingsConsistent with the expectations, the results showed that there is a positive relationship between board independence, board diversity, good corporate governance and IRQ. Furthermore, the findings suggest that moderating effect positively affects the relationship between the board characteristics, good corporate governance and IRQ.Practical implicationsThe results of this study have an impact on policymakers. The presence of women and independent members of the board should be encouraged. This has a positive effect on the availability of high-quality information, able to drive investment levels and stakeholder participation.Originality/valueThis study supports the existing literature. First, it expands the scientific debate on the topic of integrated reporting (IR). Second, it extends the scope of agency theory, which is rarely used to explain IR-related phenomena. This study is one of the first to examine the moderating effect of corporate social responsibility on the association between a set of governance characteristics (i.e. Board independence and board diversity) and integrated reporting adoption.

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Integration Level of Social Environmental Disclosure (SED) Between The Global Reporting Initiative(GRI)- Sustainability Reporting and The International Integrated Reporting Council (IIRC) Reporting Among European Companies

UNIMAS Review of Accounting and Finance ◽

10.33736/uraf.1216.2018 ◽

2018 ◽

Vol 1 (1) ◽

Author(s):

Suzila Mohamed Yusof ◽

Nazaria Md Aris ◽

Nurul Syuhada Zaidi

Keyword(s):

Business Strategy ◽

Research Question ◽

Sustainability Reporting ◽

Global Reporting Initiative ◽

Critical Approach ◽

Integrated Reporting ◽

Environmental Disclosure ◽

Social And Environmental Disclosure ◽

Social Environmental ◽

International Integrated Reporting Council

This critical approach study examines the social and environmental disclosure (SED) between Sustainability Reporting (SR) and Integrated Reporting (IR) among European companies. The research question is to examine the integration level of SED within SR and IR. Applying the critical text analysis method, the GRI G3 guidelines were used to examine a sample of ten European companies. The reports for the selected companies must incorporate fully applied IR without producing any more SR in order to analyse the validity of the data. This study has discovered that there is less integration of SED in IR than SR. It is apparent that the IR approach is more towards the primary groups (investors) rather than other stakeholders, society and the environment as a whole. Hence, IR is only a mirror of sustainability for business strategy. Therefore, IR needs to engage reports with other stakeholders to sustain long-term growth.

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Evaluating the Adequacy of Water-Related Reporting and Disclosure by High-Impact users in South Africa

Journal of Environmental Assessment Policy and Management ◽

10.1142/s1464333216500034 ◽

2016 ◽

Vol 18 (01) ◽

pp. 1650003 ◽

Cited By ~ 3

Author(s):

Marthinus Jacobus Botha ◽

Sanlie. L. Middelberg

Keyword(s):

South Africa ◽

Theoretical Background ◽

High Impact ◽

Global Reporting Initiative ◽

Integrated Reporting ◽

Socially Responsible ◽

Responsible Investment ◽

Reporting Practices ◽

Disclosure Requirements

South Africa is facing a water crisis in terms of the scarcity and the quality of its water. Considering this water-constrained future, it is evident that companies in South Africa should pay attention to the pristine management and reporting of this scarce resource. The purpose of this paper is to evaluate the reporting and disclosure requirements of water of Socially Responsible Investment-indexed (SRI-indexed) JSE-listed companies. The disclosure requirements of integrated reporting, King III, the Global Reporting Initiative (GRI) and the Association of Chartered Certified Accountants (ACCA) provided the theoretical background. Content analysis was used as the research method to analyse the integrated reports of high-impact users. The findings of the study include that most of the companies illustrate commitment towards water stewardship by reporting on water-related aspects. A more comprehensive standardised set of guidelines to report on water per sector could add value to the reporting practices of companies.

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Evaluation of corporate integrated reporting in South Africa post King III release South Africa: An exploratory enquiry

Journal of Economic and Financial Sciences ◽

10.4102/jef.v6i2.268 ◽

2013 ◽

Vol 6 (2) ◽

pp. 421-438 ◽

Cited By ~ 11

Author(s):

Theophilus S. Makiwane ◽

Nirupa Padia

Keyword(s):

South Africa ◽

Risk Management ◽

Corporate Governance ◽

Financial Performance ◽

South African ◽

Listed Companies ◽

Integrated Reporting ◽

Management Processes ◽

The Future ◽

Governance Risk

Following the release of the King III report on Corporate Governance for South Africa, which became effective in March 2010, South African companies are expected to embrace the concept of integrated reporting in terms of which they are required to provide details of their strategies, corporate governance, risk management processes, financial performance and sustainability. More importantly, companies need to show how these components of integrated reporting are linked to one another so that stakeholders can make informed decisions about such companies’ current performance as well as their ability to create and sustain value in the future. The purpose of this study was to determine whether the level of reporting by South African listed companies has improved since the release of the King III report. It was subsequently found that there have been some progress in this regard, but there is still much room for improvement if the objectives of integrated reporting are to be fully met.

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Investigating the extent of sustainability reporting in the banking industry

Banks and Bank Systems ◽

10.21511/bbs.11(4).2016.07 ◽

2016 ◽

Vol 11 (4) ◽

pp. 71-81 ◽

Cited By ~ 4

Author(s):

Anet M. Smit ◽

Johan van Zyl

Keyword(s):

South Africa ◽

Social Responsibility ◽

Banking Industry ◽

Stock Exchange ◽

Sustainability Reporting ◽

Performance Criteria ◽

Global Reporting Initiative ◽

Integrated Reporting ◽

Total Compensation ◽

Annual Total

This study investigated the extent to which banks in South Africa report on remuneration and incentives according to the Global Reporting Initiative (GRI) guidelines. The study was done by examining the annual integrated reports of eight commercial banks listed on the Johannesburg Stock Exchange. Content analysis was used as the research method in this empirical study. There was, on average, 75% compliance to G4-51 a, the standard concerning remuneration policies by the integrated reports studied and 69% compliance to G4-52 a, the standard concerning the process for determining remuneration. There was a very low degree of compliance to standard G-53 a and standard G4-55 a, which concern how stakeholders’ views are sought and taken into account regarding remuneration and the ratios regarding compensation, respectively. Two of the standards had no compliance at all. They are G4-51 b and G4-54 a that respectively, concerns how the performance criteria in the remuneration policy relate to the highest governance bodies’ and senior executives’ economic, environmental and social objectives and the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees. These are two of the most important standards in order to reach the objective of social responsibility reporting with regards to remuneration and that serious consideration must be given as to why there is no compliance. Based on the findings from this study, it is found that social reporting by the banks listed on the JSE with regards to remuneration, as indicated by the GRI G4, are relatively poor. Keywords: sustainability reporting, sustainable development, global reporting initiative, integrated reporting; remuneration and incentives, corporate social responsibility, banking industry, South Africa. JEL Classification: M14, N2, N27, M52

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PENGARUH CORPORATE GOVERNANCE, RETURN ON ASSET DAN UMUR PERUSAHAAN TERHADAP LUAS PENGUNGKAPAN SUSTAINABILITY REPORT

Jurnal Akuntansi Bisnis ◽

10.30813/jab.v11i2.1388 ◽

2018 ◽

Vol 11 (2) ◽

Author(s):

Erna Wijayana ◽

Kurniawati Kurniawati

Keyword(s):

Corporate Governance ◽

Significant Influence ◽

Sustainability Reporting ◽

Business Strategies ◽

Global Reporting Initiative ◽

Linear Regression Method ◽

Return On Assets ◽

Statistical Tool ◽

Purposive Sampling ◽

Sustainability Report

ABSTRACT: In the era of globalization, sustainability reporting can serve as a differentiator in competitive industries.Business stakeholders need better information about how environmental, social and economic impacts are factored into business strategies and decisions.The aim of this research is to investigate the effect of corporate governance is measuredby indicators ASEAN Corporate Governance Scorecard (ACGS) level 1, Return on Assets (ROA) and the age of the company towards the extensive disclosure of sustainability report. The extensive disclosure of sustainability report is measured by the instrument onGlobal Reporting Initiative (GRI) version 4.The sample used in this research were companies which consistently listed at LQ45 Index 2014-2015. Samples are collected by purposive sampling and resulted in 15 (fifteen) companies selected as the final sample.The statistic method used was multiple linear regression method, with hypotheses testing of statistic t using a significance level (α) = 5%. The statistical tool used is SPSS 22. The result of this research indicates that corporate governance and return on assets have apositive significant influence on the extensive disclosure of sustainability report, while the company's age has no significant influence on the extensive disclosure of sustainability report. Keyword : Corporate governance, return on asset, company age, sustainability report ABSTRAK: Di era globalisasi pelaporan berkelanjutan dapat menjadi pembeda dalam industri yang kompetitif. Para pemangku kepentingan bisnis membutuhkan informasi yang lebih baik lagi mengenai bagaimana dampak lingkungan, sosial dan ekonomi diperhitungkan dalam strategi bisnis dan keputusan. Penelitian ini bertujuan untuk menginvestigasi pengaruh corporate governance yang diukur berdasarkan indikator ASEAN Corporate Governance Scorecard (ACGS) level 1, Return on Asset (ROA) dan umur perusahaan terhadap luas pengungkapan sustainability report. Untuk luas pengungkapan Sustainability Report diukur berdasarkan instrumen Global Reporting Initiative (GRI) versi 4. Sampel dalam penelitian ini adalah perusahaan – perusahaan yang secara konsisten masuk dalam indeks LQ45 selama periode 2014-2015. Pemilihan sampel menggunakan teknik purposive sampling dan menghasilkan 15 (lima belas) perusahaan sebagai sampel akhir dalam penelitian ini. Metode statistik yang digunakan adalah metode regresi linear berganda, dimana pengujian hipotesis t menggunakan tingkat signifikansi α = 5%.Alat statistik yang digunakan adalah SPSS 22. Hasil penelitian ini menunjukkan bahwa corporate governance dan return on asset memiliki pengaruh signifikan terhadap luas pengungkapan sustainability report, sedangkan umur perusahaan tidak memiliki pengaruh signifikan terhadap luas pengungkapan sustainability report. Kata kunci: Corporate governance, return on asset, umur perusahaan, sustainability report

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