Does media exposure and media legitimacy moderate the relationship between environmental audit committee and environmental disclosure quality?

Abstract

Purpose This study aims to examine the moderating effect of media exposure and media legitimacy on the environmental audit committee (EAC) regarding environmental disclosure quality as measured by voluntary and timely disclosure. Design/methodology/approach This paper was based on a sample of 81 French nonfinancial companies listed on the SBF 120 index and covered a six-year period; from 2014 to 2019. To test the hypotheses, a feasible generalized least squares regression was applied. Moreover, the authors checked the results using an additional analysis and the generalized method of moment model for endogeneity problems. Findings The results obtained show that for 482 French firm-year observations during the period 2014–2019, the media exposure does not play a moderating role between the EAC and the voluntary environmental disclosure; However, it plays a moderating role between the EAC and the timely environmental disclosure. The results also show that media legitimacy plays a moderating role between the EAC and the quality of environmental information. After testing for endogeneity problems, the findings remain unchanged. Research limitations/implications The findings of this study may be of interest to academic researchers, practitioners and regulators who are interested in determining the quality of environmental disclosure by considering the role of the EAC while giving a role to media exposure and media legitimacy in the French context. Considering the EAC as a powerful source of effective corporate governance to improve the quality of environmental disclosure for decision-making, the research provides valuable insights for policymakers and managers on the importance of this mechanism and the importance of the environmental media and its tone in making environmental reporting useful and relevant. Originality/value The originality of the work lies in the fact that it is one of the first works that deal with the moderating effect of media exposure on the relationship between the EAC and the quality of environmental information disclosure measured by voluntary and timely disclosure. To the best of the authors’ knowledge, no previous empirical studies have been conducted on this relationship in the French context or in other contexts.

Peran Pengungkapan Lingkungan Dalam Meningkatkan Harga Saham

“…Hal senada diungkapkan oleh Eccles et al (2014), Kuzey & Uyar (2017) dan Uyar et al (2020) bahwa tingkat keberlanjutan yang tinggi direaksi positif oleh pasar dengan peningkatan harga maupun return saham. Lebih lanjut diungkapkan oleh Jarboui & Moalla (2022) bahwa pengungkapan lingkungan yang baik berdampak pada value added perusahaan. Stuart et al, (2023) menjelaskan bahwa perusahaan yang melakukan investasi pada keberlanjutan dinilai tinggi oleh investor dengan tingginya harga saham.…”