Environmental disclosure level: A firms’ proactive or defensive posture?
Article Sidebar
Main Article Content
Abstract
This paper investigated which theory best explains companies' motivation for environmental disclosure: the image theory (proxy: adherence to the Corporate Sustainability Index - ISE), or the legitimacy theory (proxy: materiality of provisions for environmental damage in the Balance Sheet - MatPA). Listed non-financial Brazilian companies with Environmental Disclosure Score (EDS) available on Bloomberg for the period 2010-2018 were analyzed. The panel data analysis indicated that among non-potentially polluting companies, ISE is significant to explain environmental disclosure and MatPA is not; among potentially polluting firms, MatPA is significant, but ISE is not. This suggests the coexistence of two antagonistic motivations for disclosure: the proactive strategy of
creating value and differentiation through environmental disclosure prevails (image theory) in non-potentially polluting companies, whereas potentially polluters primarily adopt a reactive attitude toward disclosure, seeking self-legitimation with stakeholders after causing damage to the environment (legitimacy theory).
Downloads
Metrics
Article Details
A RAE compromete-se a contribuir com a proteção dos direitos intelectuais do autor. Nesse sentido:
- adota a licença Creative Commoms BY (CC-BY) em todos os textos que publica, exceto quando houver indicação de específicos detentores dos direitos autorais e patrimoniais;
- adota software de detecção de similaridades;
- adota ações de combate ao plagio e má conduta ética, alinhada às diretrizes do Committee on Publication Ethics (COPE)
References
Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38(4), 932-968. doi: 10.1177/0149206311436079
Akerlof, G. A. (1970). The Market for “Lemons”: Quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 84(3), 488. doi: 10.2307/1879431
Albitar, K., Hussainey, K. Kolade, N., & Gerged, A. M. (2020). ESG disclosure and firm performance before and after IR: The moderating role of governance mechanisms. International Journal of Accounting & Information Management, 28(30), 429-444. doi: 10.1108/IJAIM-09-2019-0108
Aragón-Correa, J. A., Marcus, A., & Hurtado-Torres, N. (2016). The natural environmental strategies of international firms: Old controversies and new evidence on performance and disclosure. Academy of Management Perspectives, 30(1), 24-39. doi: 10.5465/amp.2014.0043
Barth, M. E., McNichols, M. F., & Wilson, G. P. (1997). Factors influencing firm’s disclosures about environmental liabilities. Review of Accounting Studies, 2(1), 35-64. doi: 10.1023/A:1018321610509
Bebbington, G., Larrinaga, C., & Moneva, J. M. (2008). Corporate social reporting and reputation risk management. Accounting, Auditing & Accountability Journal, 21(3), 337-361. doi: 10.1108/09513570810863932
Bellamy, M. A., Dhanorkar, S., & Subramanian, R. (2020). Administrative environmental innovations, supply network structure, and environmental disclosure. Journal of Operations Management, 66(7/8), 895-932. doi: 10.1002/joom.1114
Chen, J. C., Cho, C. H., & Patten, D. M. (2014). Initiating disclosure of environmental liability information: An empirical analysis of firm choice. Journal of Business Ethics, 125(4), 681-692. doi: 10.1007/s10551-013-1939-0
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4/5), 303-327. doi: 10.1016/j.aos.2007.05.003
Coelho, F. Q., Ott, E., Pires, C. B., & Alves, T. W. (2013). Uma análise dos fatores diferenciadores na divulgação de informações voluntárias sobre o meio ambiente. Contabilidade Vista & Revista, 24(1), 112-130. Recuperado de https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/1290
Cormier, D, & Magnan, M. (2015). The economic relevance of environmental disclosure and its impact on corporate legitimacy: An empirical investigation. Business Strategy and the Environment, 24(6), 431-450. doi: 10.1002/bse.1829
Cormier, D., Magnan, M., & Velthoven, B. V. (2005). Environmental disclosure quality inlarge German companies: Economicincentives, public pressures orinstitutional conditions? European Accounting Review, 14(1), 3-39. doi: 10.1080/0963818042000339617
Deegan, C., & Gordon, B. (1996). A study of the environmental disclosure practices of Australian corporations. Accounting and Business Research, 26(3), 187-199. doi: 10.1080/00014788.1996.9729510
Deegan, C., Rankin, M., & Voght, P. (2000). Firms' disclosure reactions to major social incidents: Australian evidence. Accounting Forum, 24(1), 101-130. doi: 10.1111/1467-6303.00031
Dye, R. A. (2001). An evaluation of “essays on disclosure” and the disclosure literature in accounting. Journal of Accounting and Economics, 31(1/3), 181-185. doi: 10.1016/S0165-4101(01)00024-6
Garcia, A. S., Mendes-Da-Silva, W., & Orsato, R. (2017). Sensitive industries produce better ESG performance: evidence from emerging markets. Journal of Cleaner Production, 150, 135-147. doi: 10.1016/j.jclepro.2017.02.180
Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate, social and environmental reporting: A review of literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47-77. doi: 10.1108/09513579510146996
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1/3), 405-440. doi: 10.1016/S0165-4101(01)00018-0
Hooghiemstra, R. (2000). Corporate communication and impression management: New perspectives why companies engage in corporate social reporting. Journal of Business Ethics, 27(1/2), 55-68. doi: 10.1007/978-94-011-4311-0_7
International Accounting Standard Board. (2001). International Accounting Standard 37 – Provisions, Contingent Liabilities and Contingent Assets. London, UK: IFRS Foundation
Kim, I., Ryou, J. W., & Yang, R. (2020). The color of shareholders' money: Institutional shareholders'political values and corporate environmental disclosure. Journal of Corporate Finance, 64. doi: 10.1016/j.jcorpfin.2020.101704
Leal, P. H., Costa, B. M. do N., Oliveira, M. C., & Rebouças, S. M. D. P. (2018). Divulgação de provisões e passivos contingentes ambientais sob a ótica da teoria institucional. Enfoque: Reflexão Contábil, 37(3), 37-54. doi: 10.4025/enfoque.v37i3.39477
Lindblom, C. K. (1994). The implications of organisational legitimacy for corporate social performance and disclosure. Critical Perspectives on Accounting Conference, New York, USA
Lourenço, I. C., & Branco, M. C. (2013). Determinants of corporate sustainability performance in emerging markets: the Brazilian case. Journal of Cleaner Production, 57, 134-141. doi: 10.1016/j.jclepro.2013.06.013
McBrayer, G. A. (2018). Does persistence explain ESG disclosure decisions?. Corporate Social Responsibility and Environmental Management, 25(6), 1074-1086. doi: 10.1002/csr.1521
Minutolo, M. C, Kristjanpoller, W. D., & Stakeley. (2019). Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance. Business Strategy and the Environment, 28(6), 1083-1095. doi: 10.1002/bse.2303
Miralles-Quirós, M. M., Miralles-Quirós, J. L., & Gonçalves, L. M. V. (2018). The value relevance of environmental, social, and governance performance. The Brazilian case Sustainability, 10, 574. doi: 10.3390/su10030574
Qiu, Y., Shaukat, A., & Tharyan, R. (2016). Environmental and social disclosures: Link with corporate financial performance. The British Accounting Review, 48(1), 102-116. doi: 10.1016/j.bar.2014.10.007
Rosa, F. S., Guesser, T., Hein, N., Pfitscher, E. D., & Lunkes, R. J. (2015). Environmental impact management of Brazilian companies: Analyzing factors that influence disclosure of waste, emissions, effluents, and other impacts. Journal of Cleaner Production, 96, 148-160. doi: 10.1016/j.jclepro.2013.10.035
Rover, S., Tomazzia, E. C., Murcia, F. D.-R., & Borba, J. A. (2012). Explicações para a divulgação voluntária ambiental no Brasil utilizando análise de regressão em painel. Revista de Administração, 47(2), 217-230. doi: 10.5700/rausp1035
Verrecchia, R. E. (2001). Essays on disclosure. Journal of Accounting and Economics, 32, 97-180. doi: 10.1016/S0165-4101(01)00025-8
Walden, W. D., & Schwartz, B. N. (1998). Environmental disclosures and public policy pressure. Journal of Accounting and Public Policy, 16, 125-154. doi: 10.1016/S0278-4254(96)00015-4