Do sustainability disclosure mechanisms reduce market myopia? Evidence from European sustainability companies

Rio, Cristina Del; Arceiz, Francisco José López; Muga, Luis

doi:10.1016/j.irfa.2023.102600

Cited by 7 publications

(2 citation statements)

References 81 publications

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“…After recent corporate scandals, disclosures by corporations (both mandatory financial reports and voluntary disclosures) have received significant attention [131,133]. By facilitating communication between management and the equity market, high-quality disclosures reduce valuation and managerial myopia due to information asymmetry and short-term market pressure [131,134,135]. In contrast, CSR refers to the economic, legal, ethical, and philanthropic responsibilities of companies [136].…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence from an Emerging Country

Hossain,

Tahat,

AbuGhazaleh

2024

Sustainability

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Businesses are actively integrating sustainability principles into their operations by pursuing goals that go beyond reputation management, which all help companies capture value through growth and return on investment. This study aimed to investigate the current status of the Sustainable Workplace Equality Policy (SWEP) in an emerging country—Kuwait—and how it impacts firms’ financial and market performance. This study included companies listed in the Kuwait Boursa (Boursa Kuwait is the operator of the Kuwait Stock Exchange) in the period between 2016 and 2021. A disclosure index was prepared for SWEP based on guidelines provided by a combination of various sources and standards such as the Global Reporting Initiatives (GRI) Standard, S&P Global Corporate Sustainability Assessment, Dow Jones Sustainability Index, United Nations Global Compact, and KPMG Sustainability Reporting Standards. Time series regression analysis was used to examine the hypotheses of this study which were developed using Rawls’ Theory of Justice (1971). The results revealed a strong positive relationship between SWEP disclosure and firm measures of financial performance. The results also indicate that SWEP is value-relevant and affects firms’ market value, suggesting that investors consider firms’ disclosure of SWEP when making investment decisions in Kuwait. The results of the current study are of interest to several stakeholders, especially investors and policymakers. Specifically, this study is relevant to the Kuwaiti Government, which has defined a clear path for sustainable growth with the Vision 2035/New Kuwait initiative that is aimed at transforming the country into a financial and commercial hub for the region by 2035.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence from an Emerging Country

Hossain,

Tahat,

AbuGhazaleh

2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…After recent corporate scandals, disclosures by corporations (both mandatory financial reports and voluntary disclosures) have received significant attention (Jiao 2011;Camfferman and Wielhouwer 2019). By facilitating communication between management and the equity market, high-quality disclosures reduce valuation and managerial myopia due to information asymmetry and short-term market pressure (Jiao 2011;del Río et al 2023;Geng et al 2023). In contrast, CSR refers to the economic, legal, ethical, and philanthropic responsibilities of companies (Carroll 1999).…”

Section: Related Literature and Hypothesesmentioning

confidence: 99%

Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence From an Emerging Country

Hossain,

Tahat,

AbuGhazaleh

2023

Preprint

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This study aimed to investigate the current status of the Sustainable Workplace Equality Policy (SWEP) in an emerging country—Kuwait—and how it impacts firms’ financial and market performance. The study included companies listed in the Kuwait Boursa (Boursa Kuwait is the operator of the Kuwait Stock Exchange) in the period between 2012 and 2020. A disclosure index was prepared for SWEP based on guidelines provided by a combination of various sources and standards such as the Global Reporting Initiatives (GRI) standard, S&P global corporate sustainability assessment, Dow Jones sustainability index, United Nations global compact, and KPMG sustainability reporting standards. Time series regression analysis was used to examine the study hypotheses. The analysis revealed a strong positive relationship between the SWEP disclosure and firm measures of financial performance. The results indicate that SWEP is value-relevant and affects firms’ market value, suggesting that investors should consider firms’ disclosure of the SWEP when making investment decisions. The results of the current study are of interest to several stakeholders, especially investors and policymakers. Specifically, the study is relevant to the Kuwaiti Government, which has defined a clear path for sustainable growth with the Vision 2035/New Kuwait that is aimed at transforming the country into a financial and commercial hub for the region by 2035.

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Spatial effects and influencing factors of urban sustainable development: An analysis of urban agglomerations in China

Du,

Zhou,

Xiao

2024

Economic Analysis and Policy

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Do sustainability disclosure mechanisms reduce market myopia? Evidence from European sustainability companies

Cited by 7 publications

References 81 publications

Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence from an Emerging Country

Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence from an Emerging Country

Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence From an Emerging Country

Spatial effects and influencing factors of urban sustainable development: An analysis of urban agglomerations in China

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