DETERMINANTS OF ENVIRONMENTAL SUSTAINABILITY INFORMATION DISCLOSURE IN DEVELOPING COUNTRIES: A LITERATURE REVIEW

Nnachi Egwu Onuoha, Gregory Onuora Okoye

Abstract


This study  aimed at reviewing existing empirical studies on the determinants of environmental sustainability information disclosure, highlighting these key drivers in developing countries and the dominants theoretical underpinning in this research area, and directing attention to research gaps for future research. Overall, a total of 18 articles from empirical studies conducted in developing countries on this topic and published mainly in Scopus indexed journals for a decade (from 2013 to 2022) were drawn and reviewed by means of content analysis. While the dominant theoretical bases for studies in this area were legitimacy, stakeholder and agency theories, firm size, profitability and industry type were found to be the key determinants of environmental sustainability disclosure in developing countries. In addition, the study highlights environmental sustainability performance as uncommonly explored rationale for environmental sustainability information disclosure, while the reviewed papers are predominantly single-country studies. This study is the first of its kind to review existing empirical studies on determinants of environmental sustainability information disclosure in developing countries. Accordingly, it not only extends extant literature on the determinants of environmental sustainability information disclosure, but its findings provide insights for theory formulation and theory deepening.


Keywords


Sustainability, Environmental sustainability, Environmental sustainability dis+closure, Determinants of environmental sustainability disclosure, Developing countries

Full Text:

PDF

References


Acar, E., Çalıyurt, K. T., & Zengin-Karaibrahimoglu, Y. (2021). Does ownership type affect environmental disclosure?. International Journal of Climate Change Strategies and Management, 13 (2), 120-141.

Acar, M. & Temiz, H. (2020). Empirical analysis on corporate environmental performance and environmental disclosure in an emerging market context: Socio-political theories versus economics disclosure theories. International Journal of Emerging Markets, 15(6), 1061-1082.

Ajape, K. M. , Adeyemi, S. B., & Omolehinwa, E. O. (2021). Correlate of environmental sustainability disclosures in Nigeria: A perceptual approach. International Journal of Contemporary Accounting Issues, 10(2), 49-63.

Alade, M. E., & Odugbemi, O. M. (2021).Determinants of Environmental Disclosure of Listed Oil and Gas Firms in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 6 (2), 53-65.

Ali, W., Frynas, J. G., & Mahmood, Z. (2017). Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review. Corporate Social Responsibility and Environmental Management, DOI: 10.1002/csr.1410

Al-Shaer, H., Salama, A. & Toms, S. (2017). Audit committees and financial reporting quality: Evidence from UK environmental accounting disclosures. Journal of Applied Accounting Research, 18(1), 2-21.

Amato, C. H. & Amato, L. H.(2011). Corporate Commitment to Global Quality of Life Issues: Do Slack Resources, Industry Affiliations, and Multinational Headquarters Matter?, Business and Society, 50(2), 388 –416.

An, Y. (2012). Voluntary disclosure of intellectual capital in Chinese (mainland) companies”, doctoral dissertation, available at: https://researchcommons.waikato.ac.nz/handle/10289/6581 (accessed 15 February 2020)

Brown, N. & Deegan, C. (1998). The public disclosure of environmental performance information—a dual test of media agenda setting theory and legitimacy theory. Accounting and Business Research, 29, 21–41.

Chandok, R.I.S. & Singh, S. (2017). Empirical study on determinants of environmental disclosure: Approach of chosen conglomerates. Managerial Auditing Journal, 32(4/5), 332-355.

Chouaibi, S. & Affes, H. (2021). The effect of social and ethical practices on environmental disclosure: evidence from an international ESG data. Corporate Governance, 21(7), 1293-1317.

Dienes, D., Sassen, R. & Fischer, J. (2016). What are the drivers of sustainability reporting? A systematic review. Sustainability Accounting, Management and Policy Journal, 7(2), 154-189.

Dobler, M., Lajili, K. & Zéghal, D. (2015). Corporate environmental sustainability disclosures and environmental risk: Alternative tests of socio-political theories. Journal of Accounting & Organizational Change, 11(3), 301-332.

Ezhilarasi, G. & Kabra, K. C. (2017). The Impact of Corporate Governance Attributes on Environmental Disclosures: Evidence from India. Indian Journal of Corporate Governance, 10(1), 1–20.

Fernandes, S.M., Bornia, A.C. & Nakamura, L.R. (2019). The influence of boards of directors on environmental disclosure. Management Decision, 57 (9), 2358-2382.

Flórez-Parra, J.M., Lopez-Perez, M.V., López Hernández, A.M. & Garde Sánchez, R. (2021). Analyzing and evaluating environmental information disclosure in universities: the role of corporate governance, stakeholders and culture. International Journal of Sustainability in Higher Education, 22(4), 931-957.

Fontana, S., D'Amico, E., Coluccia, D. & Solimene, S. (2015). Does environmental performance affect companies’ environmental disclosure?. Measuring Business Excellence, 19 (3), 42-57.

Kannenberg, L. & Schreck, P. (2018). Integrated reporting: boon or bane? A review of empirical research on its determinants and implications. Journal of Business Economics, available at: https://doi.org/10.1007/s11573-018-0922-8(accessed 20 February 2022)

Kolk, A. & Fortanier, F. (2013). Internationalization and environmental disclosure: the role of home and host institutions. Multinational Business Review, 21(1), 87 – 114.

Kuo, L. & Yu, H.-C. (2017). Corporate political activity and environmental sustainability disclosure: The case of Chinese companies. Baltic Journal of Management, 12(3), 348-367.

Le, H.N.M., O’Connell, B.T. & Safari, M. (2021). The influence of overseas study and work experience on corporate environmental disclosures: evidence from Vietnam. Meditari Accountancy Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MEDAR-11-2020-1109

Maama, H., Akande, J.O. & Doorasamy, M. (2020). NGOs' Engagements and Ghana's Environmental Accounting Disclosure Quality, Yekini, K.C., Yekini, L.S. and Ohalehi, P. (Ed.) Environmentalism and NGO Accountability. Available at: https://doi.org/10.1108/S1479-359820200000009005(accessed 20 April 2022)

Miles M. P. & Covin J. G. (2000). Environmental marketing: a source of reputational, competitive, and financial advantage. Journal of Business Ethics, 23, 299–311.

Monteiro, A.P., Pereira, C. & Barbosa, F.M. (2021). Environmental disclosure on mandatory and voluntary reporting of Portuguese listed firms: the role of environmental certification, lucratively and corporate governance. Meditari Accountancy Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MEDAR-09-2020-1001

Nuskiya, M.N.F., Ekanayake, A., Beddewela, E. & Meftah Gerged, A. (2021). Determinants of corporate environmental disclosures in Sri Lanka: the role of corporate governance. Journal of Accounting in Emerging Economies, 11 (3), 367-394.

Ohidoa, T., Omokhudu, O. O., & Oserogho, I. A. F. (2016). Determinants of environmental disclosure. International Journal of Advanced Academic Research , 2(8), 49-58.

Roy, A. & Ghosh, S. K.(2018). Determinants of Corporate Environmental Disclosure from an Asian Perspective. IIM Kozhikode Society & Management Review, 8 (2), 1–19.

Santos, L. M. D., Lucena, W. G. L., Da Silva, W. V., Bach, T. M. & Da Veiga, C.P. (2019). Explanatory Factors of the Environmental Disclosure of Potentially Polluting Companies: Evidence From Brazil. DOI: 10.1177/2158244019829548

Verawaty, Merina, C. I., Jaya, A. K., & Widianingsih, Y. (2020). Determinants of Environmental Disclosure in Indonesia. Advances in Economics, Business and Management Research, 117, 217- 226.

Wachira, M.M. & Mathuva, D.M. (2022). Corporate Environmental Reporting in Sub-Saharan Africa: A Literature Review and Suggestions for Further Research, Tauringana, V. and Moses, O. (Ed.) Environmental Sustainability and Agenda 2030(Advances in Environmental Accounting & Management, 10, 159-182. Available at: https://doi.org/10.1108/S1479-359820220000010008(accessed 20 May 2022).

Welbeck, E. E., Owusu, G. M. Y., Bekoe, R. A., & Kusi, J. A. (2017). Determinants of environmental disclosures of listed firms in Ghana. International Journal of Corporate Social Responsibility, 2 (11), 1-12.

Wichianrak, J., Wong, K., Khan, T., Siriwardhane, P. & Dellaportas, S. (2022). Soft law, institutional signalling – Thai corporate environmental disclosures. Social Responsibility Journal, 18(2), 205-220.


Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Nnachi Egwu Onuoha, Gregory Onuora Okoye

 

 

 

ISSN PRINT: 2630 - 7081

 

 

   

 

 

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.