Search Results (31)

This study examines the causal and dynamic effects of carbon information disclosure on firm value, using a policy-driven setting in China’s carbon-intensive industries. In 2018, the Ministry of Ecology and Environment implemented a regulatory policy requiring internal carbon accounting and third-party verification for carbon-intensive enterprises, without mandating public disclosure. This exogenous policy shock offers a quasi-natural experiment to investigate how firms in carbon-intensive industries respond to environmental mandates through voluntary disclosure and how such disclosure affects their market valuation. Employing a difference-in-differences framework combined with two-stage least squares estimation, we identify a significant increase in carbon information disclosure following the policy intervention. This disclosure leads to a positive and growing effect on firm value, particularly when sustained over multiple years. Moreover, the valuation effect is moderated by regional environmental regulation: firms in areas with lower enforcement intensity benefit more from disclosure, as the signal is perceived to be more voluntary and credible. These findings provide robust causal evidence on the role of carbon information disclosure in shaping market outcomes under regulatory pressure. The study contributes to the literature on environmental regulation and corporate financial behavior in emerging markets. Full article

Environmental accounting information disclosure is crucial for heavily polluting enterprises to strengthen environmental governance and realize sustainable development. However, some enterprises still suffer from weak disclosure awareness and low disclosure quality. Therefore, improving the quality of environmental accounting information disclosure in the digital era has become an urgent task to achieve China’s goal of a green and low-carbon economy. Using data from Shanghai and Shenzhen A-share listed companies in China’s polluting industries from 2013 to 2022, this study explores the impact and channels of influence of digital transformation and environmental accounting information disclosure. It has been found that digital transformation significantly impacts the quality of environmental accounting information disclosure. Further, based on the dual perspectives of internal empowerment and external monitoring, digital transformation improves environmental accounting information disclosure by promoting executive compensation incentives and enhancing analyst attention. Furthermore, the positive impact of digital transformation on environmental accounting information disclosure is more pronounced with the implementation of new environmental protection laws, high-quality audits and a high level of digital transformation, and non-state-owned enterprises. The findings provide theoretical support for the government to improve the environmental accounting information disclosure system and provide valuable policy insights to promote digitalization and green, low-carbon transformation paths for heavily polluting enterprises. Full article

Investments in circular eco-innovation projects require rigorous measurement and management accounting to assess environmental performance and enable circular economy reporting. Using a double-focused theoretical framework, a methodology is proposed to classify five circular eco-innovation projects in Spanish manufacturing companies. Projects are assessed at implementation under the prism of the resource-based view theory and over time to examine their disclosure in the stakeholder’s theoretical framework. The findings show that companies consistently report sustainability issues and circular economy principles. Specific project information is disseminated punctually, but declines significantly over time, revealing different levels of accountability throughout the lifecycle of circular eco-innovation investments. This study advances circular accounting and the eco-innovation literature by equipping practitioners with tools to compare heterogeneous projects, even during budgeting, and introducing a novel temporal perspective on circular reporting. Given the application of the European Union sustainability disclosure regulations, it also informs the debate on circular accounting and reporting. Policymakers seeking to enhance circular reporting should prioritize monitoring disclosure practices, especially for inter-company and collaborative investments. This paper first introduces the research context, followed by a description of the qualitative research methodology, the main findings, and the conclusions, where the study’s contributions and limitations are discussed. Full article

The aim of this article is to analyse the disclosure of financial and non-financial information in an ESG report on the energy sector in Poland, using the example of the Enea Group, i.e., information on the following: (1) the structure of the Enea Group, its business model, and created values; (2) the impact of the energy sector on the natural environment; (3) environmental protection costs in correlation with the calculation of electricity prices and rates (financial and non-financial aspects); and (4) pro-ecological projects. The specific aim is to adapt the accounting policy of business entities to environmental challenges by proposing changes to the energy sector’s chart of accounts, using the example of the Enea Group, which ultimately leads to changes in the structure of the integrated report and finally in the ESG report. This study is of a theoretical and conceptual nature. As a result of the triangulation of the scientific methods used in this article, it was found that neither the accounting policy nor the company’s chart of accounts have so far presented correct records of costs related to environmental protection, which implies the development and proposal of implementing changes in this area. The research sample is limited to three years and includes a case study of the Enea Group. The presented discussion allows us to fill the research gap in the scope of information on the activities undertaken by the Enea Group for the protection of the natural environment and the costs of environmental protection incurred. The added value is the original structure of the integrated report presented by the authors and ultimately the ESG report of the energy group and adapting the accounting policy to environmental challenges. Full article

In a highly volatile environment, strengthening resilience is essential for businesses to promote sustainable development, and environmental information disclosure (EID), as a crucial approach for companies to actively practice the concept of green development, has far-reaching impacts on the enhancement of corporate resilience (CR). To explore ways to efficiently enhance the sustainability of enterprises, this research, based on information asymmetry theory, investigates how EID affects CR, using data from China’s A-share-listed companies between 2011 and 2022. The study indicates that the effect of EID on CR was significantly positive at the 1% level. Mediation analysis suggests that this effect is facilitated by heightened investor attention and enhanced corporate innovation. Additionally, the positive impact is more pronounced for firms in high uncertainty environments, high levels of legalization, high levels of digital transformation, non-state-owned firms, small-scale firms, and firms in growth or decline. Based on this, EID is of great significance to enhance the resilience of enterprises, and policymakers, business managers, and investors should take into account their own development situation and the actual environment, and make scientific decisions according to local conditions. Full article

This study conducts a comprehensive meta-synthesis of review-based research on environmental accounting, spanning from 1995 to 2024. Environmental accounting, also known as green accounting, has evolved as a critical tool for integrating sustainability into corporate financial practices. Using bibliometric methods via Bibliometrix R-package (Biblioshiny—Version 4.2.0) and VOSviewer (Version 1.6.20), the research mainly examines scholarly discussion in review-based studies and identifies dominant themes. The main clusters identified are (1) environmental audits and management, (2) green accounting, financial reporting and sustainable development, (3) CSR, stakeholder engagement, and accountability, and (4) environmental accounting and protection. On the descriptive end, publication trends, prominent authors, articles, and sources are identified. The findings highlight a significant increase in review-based studies since 2022, coinciding with the growing global awareness and importance of sustainability. This study contributes to the field by consolidating fragmented research on environmental accounting, offering a framework for future academic exploration. Practically, it informs policymakers and business leaders on the importance of unified reporting standards across regions; integrating environmental considerations into financial decision-making; promoting transparency, accountability, and sustainability accounting; and disclosure across industries and regions. Full article

Environmental, Social, and Governance (ESG) disclosures are pivotal in steering listed companies toward a balanced trajectory of economic efficiency and environmental/social accountability. Disclosure of ESG information can enhance consumer confidence, create shareholder value, and promote sustainable corporate development. Based on the ESG information disclosure data of Chinese listed companies, this study investigates and empirically analyzes the frequency, content, and quality of ESG information disclosure by Chinese listed companies using a mixed-methodological research approach combining qualitative and quantitative approaches. The findings indicate a low and unreliable frequency of ESG disclosure among Chinese listed companies, with a predominant focus on descriptive content primarily in the “E” and “G” dimensions, while neglecting information disclosure in the “S” dimension. The results of subgroup analyses show that industry classification and the regional economic development level do not increase the disclosure rate. Although the nature of ownership, industry classification, and the level of regional economic development can contribute to improving the overall quality of disclosure, there are differences in the “E”, “S”, and “G” dimensions. In addition, mandatory disclosure requirements can improve disclosure quality, but some differences in the “G” dimension are not significant. The findings provide empirical support for improving the ESG disclosure performance of Chinese listed companies to achieve the “dual-carbon” goal. Full article

This research study aims to assess the impact of environmental accounting information disclosure on financial risk within the context of Vietnam’s stock market. The data collection process involved 60 non-financial companies, carefully selected from both the pool of 100 Sustainable Companies listed in the “Programme on Benchmarking and Announcing Sustainable Companies in Vietnam (CSI)”, as organized by VBCSD, and companies outside this list. The data span a timeframe from 2018 to 2022. Afterward, we utilize regression models to assess relationships and employ the t-test to evaluate differences. The results indicate that environmental accounting information disclosure has an inverse effect on the financial risk of the current year and the following year. This implies that companies that are more transparent and proactive in reporting their environmental performance are likely to experience decreased financial risk. Furthermore, the results also show differences in financial risk between the group of companies within the “100 Sustainable Companies” list and the group of companies outside this list. This disparity underscores the potential financial benefits of being recognized as a sustainable company. Based on the findings, the research team has provided several recommendations to enhance environmental accounting information disclosure and awareness. Full article

Effective stakeholder engagement is vital for sustainable water management in the Bogotá River Basin, which faces serious environmental and socio-economic challenges, including water scarcity, pollution, and inequitable distribution. Engaging diverse stakeholders can promote shared decision-making, identify common goals, and enhance the implementation of sustainable water governance strategies. Taking this into account, this research evaluates multi-stakeholder engagement in the Bogotá River Basin in Colombia over the past 30 years to promote sustainable water management in the face of current global challenges. The research methodology includes a desk-based and systematic review, as well as policy analysis using descriptive and quantitative methods. With the use of MAXQDA software, we identified 74 national, regional, and local policies focused on stakeholder engagement for water management in Colombia, which were narrowed down to 22 documents for the Bogotá River Basin. The policy analysis is based on the Organization for Economic Co-operation and Development (OECD) indicator for Principle 10 to self-assess the level of legal framework implementation and stakeholder engagement. The self-assessment pointed out that despite the strong legal background and the enhancement of stakeholder engagement via formal and informal participatory mechanisms in the first stages of policy-making, there is a lack of engagement in the evaluation and follow-up phases, leading to box-ticking mechanisms. The findings suggest that effective stakeholder engagement needs to be comprehensive in policy-making processes, especially in the evaluation and follow-up stages. Moreover, the river basin’s management can improve by making a clear disclosure about the outcomes of participatory processes. This research concludes that promoting shared decision-making, identifying common goals, and enhancing the implementation of sustainable water management strategies can greatly benefit the Bogotá River Basin. These efforts can lead to more effective and efficient use of water resources and ultimately contribute to a healthier and more sustainable environment. Full article

The gaps observed in entities’ traditional reports and accounts led to the emergence of the integrated report (IR), which includes several content elements, namely the component relating to risks and opportunities. Within this scope, the specific risks that may affect an organization’s capacity to create value are disclosed, among others, which is information of interest to the different stakeholders. This paper aims to identify the explanatory factors that influence the disclosure of risks in IRs. For this purpose, the IRs of entities listed on the Brazilian stock exchange for the year 2020 were assessed. The study was based on the explanatory theories of risk disclosure usually found in the literature, namely, the legitimacy, the agency, the signaling, and the upper echelon theories. Linear regression models were used with the disclosure rates of different types of risk as dependent variables. The size, profitability, indebtedness, independence, and gender diversity in the board of directors (BD), audit, and activity sector comprised the selected explanatory factors. Associations were found between some of the types of risks disclosed and the size of the entity, the existence of an audit, the independence of the BD, and the activity sector. The paper contributes to the literature about the explanatory factors of risk disclosure by exploring its analysis with different typologies and attributes, having the IR as a source of information, which is still little explored. The scientific contribution encompasses proposing a new risk analysis model in the IR. The innovative elements also comprise the classification of risks related to sustainable development (SD), including environmental, social, and governance (ESG) factors. Full article

This study examines the nature of environmental disclosures of Thai public listed companies (PLCs) which operate in environmentally sensitive industries and the factors affecting environmental disclosures as well as the need for a critical perspective from Non-Governmental Organizations (NGOs) on corporate environmental reporting. A semi-structured interview approach was used for 19 interviews to attain critical perspectives of NGOs on environmental reporting. Thematic analysis through the lens of legitimacy theory and stakeholder theory is undertaken to identify themes and patterns that emerged from the study. Findings of this study reveal that the lack of quantity and quality when it comes to corporate environmental reports are serious issues, thus activating civil society’s criticism. Quality issues are dominant for the lack of reliance on voluntary environmental reporting by NGOs. The government’s monitoring and regulatory compliance systems is key, which has been highlighted as another factor. NGOs prefer government information over environmental information reported by companies. There is strong support for third-party verification and assurance to make the reports more reliable and useful. This study adds to the environmental disclosures and reporting literature by providing insights into civil society perspectives on corporate environmental reporting in the context of a developing country—Thailand. It sheds light on how companies can improve their stakeholder management and engagement strategy. It provides recommendations which may be used to inform relevant policy makers in improving Thai disclosure regulation and compliance mechanisms to promote greater monitoring and accountability. It also suggests companies further explore and examine potential technologies to support their reporting. Full article

It is important to assess the factors that affect firms’ strategies for environmental improvement. Taking China’s pilot of officials’ off-office accountability audit of natural resource assets (hereafter accountability audit) that commenced in 2014 as an exogenous shock to government audits of leading officials, we use a difference-in-differences method (DID) to examine the impact of government audits on firms’ green innovation strategies. Our results show that the accountability audit increases the proximity between firms’ previous and present green innovation fields and enhances incremental rather than radical green innovation. Furthermore, these influences are stronger in the case of pressure from local governments for firms to adopt environmental protection measures, government control of firms, and market performance pressures than in other cases. In addition, the accountability audit drives investment in environmental protection toward green innovation in existing fields. Finally, the accountability audit increases firms’ economic value added and disclosure of social responsibility information. Overall, our study provides evidence that firms conduct similar and known green innovations in response to government audits. Full article

The proliferation of sustainability reporting (SR) is in response to environmental and social responsibility, but investors are increasingly concerned over the effects of sustainability reporting in corporate sustainability. The Sustainability Accounting Standard Board (SASB)’s sustainability standards are acknowledged as the main framework for implementing this activity, yet the influencing factors among sustainability reports highly correlate and are diverse and complicated, especially in the semiconductor industry, which is the key driving force for economic development in China. To exploit and evaluate those key factors, this research introduces a hybrid model that integrates fuzzy rough set theory with particle swarm optimization (FRST-PSO) and a fuzzy decision-making trial and evaluation laboratory (fuzzy DEMATEL). FRST-PSO is adopted to filter out redundant and irrelevant factors, and the selected results are then inserted into fuzzy DEMATEL to depict the opaque relationships and set up a prioritization strategy for improvement among the factors. According to the findings on the magnitude of the impact, the priorities for improvement are environment, human capital, social capital, leadership and governance, and business model and innovation. Based on the results, an optimal and practical solution is proposed as the basis for information disclosure of sustainability reporting for the semiconductor industry. Full article

Prior research has shown that companies’ sustainability reporting in relation to environmental, social, and governance disclosures influences investors’ investment decisions. Since the credibility of these disclosures is often questionable, it is important to understand how investors perceive sustainability reporting and include it in their decision-making process. Although the high relevance of this topic has already been clarified in research, the extant literature is heterogeneous and poorly connected on several levels. Against this background, we conducted a systematic literature review of 27 experimental studies on this topic published in leading accounting journals between 2000 and 2021. By clustering the results according to Mercer’s credibility factors, we synthesize the research on investors’ perceptions of sustainability reporting in a novel way, and derive suggestions for future research. We find that the interest in experimental research on sustainability reporting perception has grown in recent years. Researchers so far have examined sustainability performance and external assurance as the most relevant factors determining the credibility of sustainability information. Other factors, such as disclosure precision and inherent plausibility, are sparsely explored. We provide avenues for future research to investigate the perception of sustainability disclosures more comprehensively, by focusing on understudied credibility factors and on new theories and heuristics. Additionally, we suggest considering diverse experimental settings, such as different investor groups, company characteristics, or experimental procedures in general. Full article

This study explores factors that drive environmental accounting information disclosure (EAID) among corporations in China. Using a sample of 200 A-shared listed firms, we apply a structural equation model (SEM) and multiple linear regressions to examine how, and to what extent, external pressure, corporate performance and corporate governance affects the EAID of corporations. The results show that external pressure and corporate performance can significantly and positively affect corporate EAID. Regarding external pressure, government regulations, media pressure and loans are the most important driving factors, whereas profitability and sales ability are the most important ones among corporate performance factors. However, we found that governance factors have no significant impact on EAID. This paper enriches research on environmental accounting information disclosure and provides important insights for Chinese regulators into effective ways of fostering disclosures of environmental accounting information and raising corporate awareness of CSR fulfillment to ensure sustainable development. Full article