Environmental Performance Announcement and Shareholder Value: The Role of Environmental Disclosure

Ifada, Luluk Muhimatul; Munawaroh,; Kartika, Indri; Fuad, Khoirul

doi:10.1007/978-3-030-79725-6_42

Cited by 3 publications

(1 citation statement)

References 29 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Consistent with legitimacy theory, companies with good EP disclose a high level of environmental information to enhance the company's reputation and create a positive corporate image. Prior studies supported this expectation (Ahmadi and Bouri, 2017;Al-Tuwaijri et al, 2004;Clarkson et al, 2008;Giannarakis et al, 2017;Qiu et al, 2016b;Muhimatul Ifada et al, 2021). All of them concluded that EP has a positive effect on ED.…”

Section: Literature Review and Hypothesesmentioning

confidence: 79%

Environmental performance and environmental disclosure relationship: the moderating effects of environmental cost disclosure in emerging Asian countries

Ifada

Saleh

2022

MEQ

View full text Add to dashboard Cite

PurposeThis paper aims to analyze the effect of environmental performance (EP) on environmental disclosure (ED) and determine whether environmental costs (ECs) moderate this relationship. This paper extends legitimacy theory that focuses on the commonly assumed interaction between companies and community, with the effect of quantitative information that can summarize a large amount of narrative disclosure and its effect on narrative ED.Design/methodology/approachThis paper uses regression analysis on 492 unbalanced panel data of emerging Asian countries' publicly listed companies between 2006 and 2019.FindingsResults show that EP has a positive effect on ED. EC weakens the effect of EP and ED.Originality/valueExtending the incentives to signal EP through disclosure, this cross-country study tests how quantitative EC information can summarize the narrative and reduce the level of disclosure. This paper also proves the summarization effect of environmental cost diminution in countries with low market sophistication.

show abstract