Environmental disclosures and corporate attributes, from the lens of legitimacy theory: a longitudinal analysis on a developing country

F. Akhter, Mohammad Rokibul Hossain, Hamzah Elrehail, S. Rehman, B. Almansour
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引用次数: 6

Abstract

PurposeThe study seeks to evaluate the extent and quality of environmental reporting following a longitudinal analysis and covering a wide spectrum of industries in a single frame. The study also attempts to identify the set of most favored environmental reporting items by firms and items which are least disclosed. Furthermore, the study attempts to test whether certain corporate attributes such as firm size, age of the firm, leverage ratio, profitability, presence of independent directors in the board and gender diversity have any influencing power over environmental disclosure practices. The whole study has been carried out from legitimacy theory setting.Design/methodology/approachThe study follows longitudinal analysis to identify the extent and quality of environmental disclosures. A self-constructed checklist of 12 environmental reporting items has been developed analyzing the annual report and content analysis method is followed to measure the extent and quality of environmental disclosures and identify environmental reporting items which are mostly disclosed and which are least disclosed. The study further uses panel data regression analysis to investigate whether certain corporate attributes have any impact on environmental disclosures using multiple linear regression. Total of 345 annual reports of listed financial and nonfinancial institutions have been observed in this study ranging from 2015 to 2019.FindingsThe key finding suggests that strict enforcement of Green Banking Rules 2011 fosters country’s commercial banks to invest more to protect the environment and commercial banks encourage nonfinancial institutions for environmental performance and related disclosures through finance. Therefore, almost 50% of sample firms disclose their environmental performance through reporting in either narrative, quantitative or monetary format which was only 2.23% in the last decade. Findings also reveal that tree plantation is the most reported environment disclosure followed by investment in renewable energy and green infrastructural projects and the least reported items are fund allocation for climatic changes and carbon management policy. Further analysis shows that firm size and leverage ratio both have positive impact on environmental reporting.Research limitations/implicationsAn in-depth analysis may be conducted to identify why certain environmental items are least disclosed such as fund allotment for climatic changes, carbon management policy, etc. and how corporations may earn social appreciation and motivation by investing in those least preferred items in legitimacy theory setting. Future research may also take into consideration other corporate attributes which are not considered in the study.Originality/valueThe study conducted an in-depth analysis to understand the most favored form of environmental disclosures (narrative/quantitative/monetary) and their extent after incorporation of regulatory guidelines, which is the first of its kind in the research of environmental disclosures. The study indeed contributes to the documentation of environmental reporting in the context of a developing country where there is a lack of longitudinal analysis from the lens of legitimacy theory. Moreover, a wide spectrum of industries has been taken into consideration which facilitates the generalized findings on the environmental disclosure practices of corporations in Bangladesh.
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合法性理论视角下的环境披露与企业属性:一个发展中国家的纵向分析
目的本研究旨在通过纵向分析评估环境报告的范围和质量,并在一个框架内涵盖广泛的行业。该研究还试图确定企业最喜欢的环境报告项目和披露最少的项目。此外,该研究试图测试某些公司属性,如公司规模、公司年龄、杠杆率、盈利能力、董事会中独立董事的存在以及性别多样性,是否对环境披露实践有任何影响。整个研究都是在合法性理论的背景下进行的。设计/方法/方法该研究遵循纵向分析,以确定环境披露的范围和质量。编制了一份由12个环境报告项目组成的自行清单,分析年度报告,并采用内容分析方法来衡量环境披露的范围和质量,确定披露最多和披露最少的环境报告项目。该研究进一步使用面板数据回归分析,使用多元线性回归来调查某些企业属性是否对环境披露有任何影响。本研究共观察了345份上市金融和非金融机构2015年至2019年的年度报告。结果表明,严格执行《2011年绿色银行规则》有助于国家商业银行加大投资保护环境,商业银行鼓励非金融机构提高环境绩效和相关绩效通过财务披露。因此,近50%的样本公司通过叙述、定量或货币形式的报告来披露其环境绩效,这在过去十年中仅为2.23%。调查结果还显示,植树造林是报告最多的环境披露,其次是可再生能源和绿色基础设施项目的投资,报告最少的项目是气候变化和碳管理政策的资金分配。进一步分析表明,企业规模和杠杆率对环境报告都有积极影响。研究局限性/含义可以进行深入分析,以确定为什么某些环境项目披露最少,如气候变化的资金分配、碳管理政策等,以及企业如何在合法性理论背景下通过投资于这些最不受欢迎的项目来获得社会赞赏和动机。未来的研究还可能考虑研究中未考虑的其他企业属性。独创性/价值该研究进行了深入分析,以了解最受欢迎的环境披露形式(叙述性/定量/货币性)及其在纳入监管指南后的程度,这是环境披露研究中的首次。这项研究确实有助于在一个缺乏从合法性理论角度进行纵向分析的发展中国家背景下记录环境报告。此外,还考虑了广泛的行业,这有助于对孟加拉国公司的环境披露做法进行普遍调查。
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来源期刊
CiteScore
6.90
自引率
0.00%
发文量
21
审稿时长
24 weeks
期刊介绍: European Journal of Management and Business Economics is interested in the publication and diffusion of articles of rigorous theoretical, methodological or empirical research associated with the areas of business economics, including strategy, finance, management, marketing, organisation, human resources, operations, and corporate governance, and tourism. The journal aims to attract original knowledge based on academic rigour and of relevance for academics, researchers, professionals, and/or public decision-makers.
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