This paper aims at finding out the quality of environmental reporting and its association with company characteristics considering listed companies from various sectors through the lens of legitimacy theory and stakeholder theory in Bangladesh. Design/ Methodology/ Approach: Secondary data relevant to company characteristics and environmental disclosure have been collected from various parts of the annual reports of firms for the year 2016. This study considers one dependent variable breaking down into three levels and four independent variables. Level of environmental disclosure (LED) is the dependent variable while size, profitability, leverage and industry type are independent variables. Research finding: By employing Ordinary Least Square (OLS), the level of environmental disclosures (LED-1) is significantly associated with firm size, unlike the profitability, leverage and production attributes. The moderate disclosure level (LED-2) is likely to be affected by the firm size, unlike the other factors. Furthermore, the greatest disclosure level (LED-3) is to be strongly affected by business size and profitability. Moreover, the study confirms that firm type has no impact on environmental disclosure. Theoretical contribution/ Originality: This paper provides insights into the quality of environmental disclosure of Bangladeshi companies. It reveals that only leverage and size affect the total environmental disclosure of firms, unlike type and other features. This has a perfect alignment with the legitimacy theory that larger firms tend to disclose more to legitimise their activities and scale up their image. Practitioner/ Policy implication: This paper helps firms in implementing environmental disclosure policies and make them more environmentally responsible. Limitation/ Implication: Exploring the qualitative environmental disclosures among various types of industries in Bangladesh in a longitudinal manner by addressing more control variables may contribute to future research on determinants of corporate environmental reporting.
This study examines simultaneous relationships between regulatory capital, risk, and cost-inefficiency for a sample of 30 commercial banks in Bangladesh from 2006 to 2018. To conduct the analysis, we used the Generalized Methods of Moments (GMM) in an unbalanced panel data framework. The empirical results show that there is a negative and significant relationship between capital regulation and credit, and overall risk. It is also evident from the results that the capital adequacy ratio is positively and significantly related to default risk and liquidity risk. Therefore, higher capitalized banks take an effort to prevent more credit risk and promote financial stability by reducing liquidity risk. Results also report that banks have been characterized as inefficient, less capitalized, and high risk. On the other hand, efficient banks are more stable but have a high level of liquidity risk. Besides, from the size of the bank, large banks are defined as having lower regulatory capital, are more risk seekers but stable with higher cost-efficiency. Notably, higher capitalized banks are more profitable and cost-efficient by reducing risk. Finally, this study also provides some insightful policy suggestions to the stakeholders.
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