The color of shareholders' money: Institutional shareholders' political values and corporate environmental disclosure

Kim, In-Cheol; Ryou, Ji Woo; Yang, Rong

doi:10.1016/j.jcorpfin.2020.101704

Cited by 59 publications

(52 citation statements)

References 76 publications

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“…Our evidence is coherent with the logic behind Article 173-VI of France's Law on Energy Transition for Green Growth that mobilizes institutional investors in addressing the climate-change challenge. Our findings are in line with those of Kim et al (2020), who suggested that dedicated institutional 6. Drivers of carbon disclosure shareholders with long-term horizons encourage better environmental performance and shape environmental disclosure policies.…”

Section: Descriptive and Correlation Statisticssupporting

confidence: 93%

“…To check the consistency of our results, we distinguish between firms with low/high institutional investments (Kim et al, 2020) and before/after the Paris Agreement. We also include several control variables that are consistent with prior disclosure studies.…”

Section: Variable Definition and Research Modelsmentioning

confidence: 99%

“…This analysis aims to enhance our understanding through an in-depth investigation of the role of foreign directors on CD while differentiating between firms based on their CE class. We, thus, run the following random effects regression for high (low) CE industries: Motivated by recent studies (Buchanan et al, 2018;Kim et al, 2020), our research also examines the relationship between foreign directors and CD across firms with varying levels of institutional ownership. Following Buchanan et al (2018), we classify our data set into two distinct groups based on the institutional ownership level at the base year (2010) of our data set.…”

Section: Foreign Directorsmentioning

confidence: 99%

“…Using resource dependence, agency and legitimacy theories, our paper has two main objectives: examining the impact of foreign directors on CP and CD. Additionally, our research addresses the drivers of CD by investigating the potential effect of foreign directors on CD when segregating firms based on their high/low carbon impact (Qian and Schaltegger, 2017), varying levels of institutional ownership (Kim et al, 2020) and the Paris Agreement adoption period (before and after). Our study, thus, addresses the research question of to what extent the presence of foreign directors on the board is associated with the CD and CP of French listed firms, for which there is no empirical evidence in the literature to the best of our knowledge.…”

Section: Introductionmentioning

confidence: 99%

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Impact of foreign directors on carbon emissions performance and disclosure: empirical evidence from France

Mardini

Lahyani

2021

SAMPJ

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Purpose Drawing on multiple theoretical approaches, this study aims to investigate whether the presence of foreign directors on the board is associated with a company’s carbon emissions performance (CP) and carbon disclosure (CD). Design/methodology/approach The sample comprises 67 non-financial listed firms from the Société des Bourses Françaises 120 index for the period 2010–2018 and the analysis relies on carbon reports from the carbon disclosure project, using a panel data analysis based on random-effects regression. Findings The paper finds that having foreign directors has a positive significant impact on both aspects of carbon emissions (CE), namely, CP and CD. Foreign directors’ incentives to reveal extensive sustainability information depend on the volume of CE. The findings also indicate that foreign directors are more engaged in enhancing environmental transparency and lowering information asymmetry to maintain/ improve corporate legitimacy. Practical implications The findings show that foreign directors play a vital role as one of the main pillars of a carbon model for sustainable carbon activities and disclosure. The evidence has important insights for the managers of French listed firms, shareholders and regulators. Social implications The evidence underlines the value of foreign directors as a critical resource that enhances CE strategic decisions. Thus, the findings are valuable to managers, as they may consider balancing between foreign and local directors to benefit from a rich heterogeneous resource encompassing the diverse merits of both types of directors, with particular emphasis on foreign directors’ international exposure and experience. Originality/value This study offers significant insights, as it examines the relationship between foreign directors and both the CP and CD in the French context, which is characterized by a non-English civil law system and the issuing of many environmental, climate and emission control laws.

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Section: Descriptive and Correlation Statisticssupporting

confidence: 93%

Section: Variable Definition and Research Modelsmentioning

confidence: 99%

Section: Foreign Directorsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Impact of foreign directors on carbon emissions performance and disclosure: empirical evidence from France

Mardini

Lahyani

2021

SAMPJ

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“…Bellamy et al (2020) described that environmental disclosure illustrates information about the impacts and practices regarding the company's environment. Kim et al (2020) stated that this environmental disclosure is still voluntary. Fan et al, (2020) stated that environmental disclosure provides economic benefits.…”

Section: Introductionmentioning

confidence: 99%

Environmental Uncertainty and Manager's Personnel Value Effect on Environmental Disclosure

Fuadah¹,

Saftiana

Kalsum

2021

j. Organisasi dan manaj.

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This study aims to examine the effect of environmental uncertainty and managers' personnel value on environmental disclosure. This study uses a saturated sampling of manufacturing companies listed on the Indonesia Stock Exchange, and the respondents are all managers’ levels. The total sample of this study is 161 manufacturing companies. The respondents got the questionnaires via email, and 64 respondents completed them. These can be processed using the Structural Equation Model - Partial Least Square. Findings. The result shows that environmental uncertainty and managers' personnel value have a positive effect on environmental disclosure. Furthermore, this result shows that the manager's personnel value is the most dominant influence of environmental disclosure. These research findings add to the literature, especially about environmental disclosure, and support contingency theory and structuration theory. The findings can give information especially environmental disclosure for the manufacturing companies in Indonesia Stock Exchange. The policymaker should concern about environmental disclosure for companies listed on Indonesia Stock Exchange. The limitation of this research is the low response from the respondents of the research. Another limitation is related to R- Square's results, which still need further research.

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Which institutional investors drive corporate sustainability? A systematic literature review

Velte

2022

Bus Strat Env

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In this article, we review recent archival research (66 studies) on the influence of institutional ownership (IO) heterogeneity on corporate sustainability. Relying on an agency-theoretical framework, we differentiate between various types of IO and their nature. We found that most prior research concentrates on the impact of IO heterogeneity on corporate sustainability performance. Long-term, sustainable, and foreign IO leads to better ESG/CSR outputs. Based on the business case argument for corporate sustainability, long-term institutional investors moderate the positive link between corporate sustainability and future financial performance. We provide useful recommendations for future research by focusing on endogeneity concerns as methodological challenges and content-related proposals for future research designs.

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The color of shareholders' money: Institutional shareholders' political values and corporate environmental disclosure

Cited by 59 publications

References 76 publications

Impact of foreign directors on carbon emissions performance and disclosure: empirical evidence from France

Impact of foreign directors on carbon emissions performance and disclosure: empirical evidence from France

Environmental Uncertainty and Manager's Personnel Value Effect on Environmental Disclosure

Which institutional investors drive corporate sustainability? A systematic literature review

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