Disclosure of corporate sustainability performance and firm performance in Asia

Abstract

Purpose The purpose of this paper is to examine the disclosure pattern of corporate sustainability (CS) and the influence of sustainability reporting on firm performance of four countries in Asia – Japan, South Korea, Indonesia and India. Design/methodology/approach The authors have collected the sustainability reports and annual reports of 111 firms from four Asian countries for a period of six years. Based on the framework of Global Reporting Initiatives (GRI, 3 and 3.1), content analysis is used for calculating the disclosure score of corporate sustainability performance (CSP). These scores are further used to examine the impact on firm performance by employing a panel data regression model. Findings The study finds that the average level and quality of disclosure are the highest for Japanese firms, followed by India and South Korea. However, in the case of Indonesia, the average score is very low. Further, the study finds a significant difference in the disclosure of overall sustainability as well as components of sustainability between the countries. The regression results indicate the positive impact of CSP (both in terms of level and quality) on MBR. Specifically, the outcome of the regression model reveals that both the level and quality disclosure of CS are crucial for enhancing firm value for both the developed and developing countries of Asia. Moreover, the relative influence of CSP (both in terms of level and quality) on firm performance is found to be more in developed countries than the developing countries of Asia. Originality/value This is the first comprehensive study in the Asian context to investigate the disclosure pattern of CSP and also examine the association between CSP and firm performance by employing the panel data model. The outcome of this study is useful for policy implication.

Sustainability Performance Indicators and Non-Financial Information Reporting. Evidence from the Italian Case

“…In this way, subsequent studies (Ilinitch et al 1998;Schaltegger and Burritt 2000;Gallego-Àlvarez 2012;Searcy et al 2016) were mainly oriented towards the exploitation of the integration of indicators on the three pillars of sustainability (economic, environmental, and social) in CRS reporting. The triple bottom line reporting principles are now considered more capable of satisfying growing stakeholders' pressure for balanced, accurate, and reliable SPIs systems (Mio and Venturelli 2013;Fernandez-Feijoo et al 2014;Lin et al 2014), with positive impacts also on companies' financial performance and competitive advantage (Adams et al 2011;Hussain 2015;Loprevite et al 2018;Laskar and Maji 2018), and to grasp the modern complexity of the company performance (Boiral et al 2012(Boiral et al , 2019Jakhar et al 2019). Companies have implemented this integration by elaborating, on a voluntary basis, CSR reports, also supported by the proliferation of guidelines and standards produced by international bodies.…”

Faktor Penentu Kinerja Pemerintah Daerah

“…Desentralisasi dan otonomi daerah memberikan dampak terhadap munculnya pergeseran kekuasaan dari pemerintah pu sat ke daerah. Salah satu penyebab yang mungkin terjadi korupsi semakin melebar di daerah adalah akibat banyaknya aturan ataupun regulasi yang inkonsisten antara pemerintah pusat dan pemerintah daerah (McAdam, Walker, & Hazlett, 2011;Laskar & Maji, 2018;Pahlevi & Setiawan, 2017). Untuk menghindari terjadinya korupsi, pe ngelolaan organisasi pemerintahan harus lebih akuntabel dan perlu adanya penga wasan (monitoring) yang ketat (Artha, Ba suki, & Alamsyah, 2015).…”

How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective

“…Indonesia was selected as a research context for several grounds. First, previous studies show the underreporting of ethical disclosure in emerging markets, including in Indonesia, such as for the aspect of corporate sustainability/CSR (Laskar and Maji, 2018), anti-corruption (Hanifa and Cahaya, 2016;Joseph et.al., 2016), and labour issues (Cahaya, 2012). The low level of disclosures signified the importance to continue giving voice on this matter to enhance several aspects of ethical practices conducted by companies and disclosed them in the published reports.…”