Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures

Gerged, Ali Meftah; Albitar, Khaldoon; Al‐Haddad, Lara

doi:10.1002/ijfe.2564

Cited by 96 publications

(113 citation statements)

References 127 publications

(268 reference statements)

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“… Covid-19 disclosure: Measured by the wordlist developed by Elmarzouky et al (2020) (Appendix 1). Board Size (BS): The number of directors on the firm’s board is used to measure board size (Allegrini and Greco, 2011; Albitar, 2015; Allini et al , 2016; Gerged et al , 2021). Independent non-executive directors (IND): The percentage of independent non-executive directors (Albitar, 2015; Allini et al , 2016; Salem et al , 2019; Gerged et al , 2021).…”

Section: Methodsmentioning

confidence: 99%

“… Board Size (BS): The number of directors on the firm’s board is used to measure board size (Allegrini and Greco, 2011; Albitar, 2015; Allini et al , 2016; Gerged et al , 2021). Independent non-executive directors (IND): The percentage of independent non-executive directors (Albitar, 2015; Allini et al , 2016; Salem et al , 2019; Gerged et al , 2021). Gender diversity (GD): The percentage of women on the board of directors has been used to measure women on the board (Adams and Ferreira, 2009; Giannarakis et al , 2014; Husted and Sousa-Filho, 2018).…”

Section: Methodsmentioning

confidence: 99%

“…Board Size (BS): The number of directors on the firm’s board is used to measure board size (Allegrini and Greco, 2011; Albitar, 2015; Allini et al , 2016; Gerged et al , 2021).…”

Section: Methodsmentioning

confidence: 99%

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Covid-19 and performance disclosure: does governance matter?

Elmarzouky

Albitar

Hussainey

2021

IJAIM

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Purpose This paper aims to investigate whether Covid-19 related information is associated with a higher level of performance disclosure in the annual reports. Furthermore, it examines the moderating effect of corporate governance on the relationship between Covid-19 and the performance disclosure by using three governance mechanisms: board size, board independence and gender diversity. Design/methodology/approach The authors use quantitative content analysis. The authors applied an automated textual analysis technique to measure the level of Covid-19 information and performance disclosure for the UK Financial Times Stock Exchange all-share non-financial firms. Findings The authors found a significant positive relationship between the Covid-19 disclosure and the firm performance disclosure in the annual reports. The authors also find that both board independence and gender diversity moderate the relationship between the Covid-19 related information and the level of performance disclosure in the annual reports. The authors further run a robustness analysis, which confirms the main results. Practical implications The finding is beneficial for the regulatory setters to better understand whether firms provide generic or meaningful Covid-19 information linked to the firm’s performance. The unique findings of this paper are relevant to regulators, governments, management, shareholders and academics. Originality/value The authors contribute to the literature in a unique and core research area not researched previously. The paper links the Covid-19 disclosure with the firm performance from the corporate narrative perspective. The paper underlines governance factors as a moderating role in this relationship by considering three main mechanisms: board size, board independence and gender diversity.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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Covid-19 and performance disclosure: does governance matter?

Elmarzouky

Albitar

Hussainey

2021

IJAIM

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“…This in order to address any potential endogeneity problems relating to omitted variables, we employ a set of firm-related factors to control for the studied associations (Wooldridge 2010). These control variables are selected based on the previous literature (Agyei-Mensah 2017; Gerged et al 2021). These variables are bank size, profitability, leverage, liquidity, age, complexity, year dummies, and the country of domicile (country dummies).…”

Section: The Control Variablesmentioning

confidence: 99%

Does Governance Affect Compliance with IFRS 7?

Hussainey

Albitar

2021

JRFM

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Although there has been considerable research on the impact of corporate governance on corporate voluntary disclosure, empirical evidence on how governance affects compliance with mandatory disclosure requirements is limited. We contribute to governance and disclosure literature by examining the impact of corporate governance on compliance with IFRS 7 for the banking sector in Gulf Cooperation Council (GCC). We use a self-constructed disclosure index to measure compliance with IFRS 7. We use regression analyses to examine the impact of board characteristics, audit committee characteristics and ownership structure on compliance with IFRS 7. Using a sample of 335 bank-year observations for GCC listed banks over the period 2011–2017, we report evidence that corporate governance variables affect compliance with IFRS 7. However, the significance of these variables depends on the type of the regression model used. Our findings suggest that governance matters for mandatory disclosure requirements. So to improve the level of compliance, regulators, official authorities, and policymakers should intensify their efforts toward improving corporate governance codes, following up their implementation and enhancing the enforcement mechanisms.

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“…Global economic development has generated detrimental environmental impacts such as carbon emissions, global warming and natural disasters. Corporations have thus been compelled to engage proactively in corporate environmental disclosures (CED) (Belal and Momin, 2009; Belal et al , 2010; Campbell, 2004; Gerged et al , 2021a) to mitigate the potential risks to their financial and economic sustainability created by their environmental practices (Gray, 2000). CED is defined by Wilmshurst and Frost (2000) as the impact of business operations and activities on the natural and physical environment in which the company operates.…”

Section: Introductionmentioning

confidence: 99%

Determinants of corporate environmental disclosures in Sri Lanka: the role of corporate governance

Nuskiya

Ekanayake

Beddewela

et al. 2021

JAEE

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PurposeThis study explores the levels of and trends in corporate environmental disclosure (CED) among a sample of Sri Lankan listed companies from 2015 to 2019. Furthermore, this article examines the firm-level determinants of CED, including corporate governance (CG) mechanisms, in Sri Lanka from a multi-theoretical perspective.Design/methodology/approachUsing a sample of 205 firm-year observations, this paper distinctively applies a panel quantile regression (PQR) model to examine the determinants of CED in Sri Lanka. This method was supported by estimating a two-step generalized method of moment (GMM) model to tackle any possible existence of endogeneity concerns.FindingsThe authors’ findings indicate an increasing trend in CED practice among the sampled companies (i.e. 41 firms, the only adopters of the GRI framework) in Sri Lanka from 2015 to 2019. However, it is still considered at an early stage compared with other developed counterparts. Furthermore, this study suggests that board size, board independence, board meetings, industry type, profitability and firm size are positively associated with CED level. In contrast, and consistent with our expectation, CEO duality is negatively attributed to the disclosed amount of environmental information in the Sri Lankan context.Research limitations/implicationsThe authors’ empirical evidence reiterates the crucial need to propagate and promote further substantive CG reforms, mandating CED in Sri Lanka.Originality/valueThe authors’ findings provide much-needed insights for indigenous companies, operating across similar emerging economies, to understand how CED can be incorporated into their reporting process based on the GRI framework in order to enhance their firm value, reduce legitimacy gaps and mitigate other operational risks.

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Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures

Cited by 96 publications

References 127 publications

Covid-19 and performance disclosure: does governance matter?

Covid-19 and performance disclosure: does governance matter?

Does Governance Affect Compliance with IFRS 7?

Determinants of corporate environmental disclosures in Sri Lanka: the role of corporate governance

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