Do global firms increase their environmental disclosure and performance? Symbolic versus effective operations and the moderating role of liability of origin. Legitimation implications

Ellimäki, Pia; Gómez‐Bolaños, Efrén; Hurtado‐Torres, Nuria Esther; Aragón‐Correa, J. Alberto

doi:10.1016/j.indmarman.2019.10.015

Cited by 16 publications

(15 citation statements)

References 58 publications

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“…NGOs, mass media, regulators) know that their operations align with the best global business practices. This disclosure helps EM-MNEs gain legitimacy from their stakeholders (Ellimäki et al , 2019; Fiaschi et al , 2017).…”

Section: Conceptual Foundationsmentioning

confidence: 99%

“…The inferences that stakeholders make using their perceptions of the country of origin of these firms are a source of legitimacy advantages (Rabbiosi and Santangelo, 2019; Stevens and Newenham-Kahindi, 2017). As noted by Ellimäki et al (2019), firms from developed countries enjoy an a priori legitimation because stakeholders tend to consider that they have the characteristics of their home countries. As stakeholders perceive developed countries as less corrupt than developing ones, stakeholders tend to give the DC-MNEs the positive institutional attributes (e.g.…”

Section: Theoretical Foundations and Hypotheses Developmentmentioning

confidence: 99%

“…Management literature shows that information disclosure is a mechanism that MNEs use to reduce uncertainty and information asymmetry in their relationships with their stakeholders (Ellima ¨ki et al, 2019). In our embedded agency approach, MNEs may voluntarily disclose CG-related information to reduce the distorting effects of corruption on information processing by stakeholders (Monteverde, 2020).…”

Section: Disclosure Legitimacy and Agency Issuesmentioning

confidence: 99%

“…There are advancements in the quantity and quality of disclosing CG-related information by MNEs (Kaymak and Bektas, 2017); however, these advancements are not followed by theoretical developments on what accounts for differences across MNEs in disclosing CG-related information (Ali et al , 2017). While many studies explore why MNEs disclose environmental, social or economic information (Blanc et al , 2019; Ellimäki et al , 2019), studies on the disclosure of information on the mechanisms designed for smoothing the agency issues are scarce in the current literature (Correa-Mejía, 2022). Also, the disclosure of CG-related information still falls short of what is needed to protect the MNEs’ stakeholders’ rights (Kamal, 2021; Raimo et al , 2021; Reinecke and Donaghey, 2021; Zattoni and Pugliese, 2021).…”

Section: Introductionmentioning

confidence: 99%

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MNEs’ corporate governance disclosure: a strategic response to corrupt environments

Juliao‐Rossi

Losada-Otálora

Católico-Segura

2022

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Purpose This study aims to examine how corruption influences the voluntary disclosure of corporate governance (CG)-related information by developed country multinationals (DC-MNEs) and emerging market multinationals (EM-MNEs) investing in six Latin American countries. Design/methodology/approach The study uses information from 300 MNEs included in the 2018 ranking of the 500 Largest Latin American companies (America Economía, 2018). Each MNE’s final annual report for the financial year ending 2018 was examined and coded to obtain the corporate governance disclosure index. Fractional probit regression was applied to test the hypotheses of the research. Findings DC-MNEs disclose more CG-related information in corrupt environments than EM-MNEs. This differentiated behavior occurs because DC-MNEs face higher legitimacy pressures in corrupt environments than EM-MNEs and because EM-MNEs are more experienced than DC-MNEs in dealing with such corrupt environments. Practical implications While both EM-MNEs and DC-MNEs need to continue investing in corrupt countries to grow, they need to disclose CG-related information as a strategic tool to manage the legitimacy issues triggered by corruption in the markets they operate. Originality/value Despite corruption being pervasive in emerging markets, its implications for firms’ strategic behaviors are still under-researched. This paper extends the scope of corporate governance and international business fields by studying how MNEs respond to relevant dimensions of the macro environment. This research shows that voluntary disclosure of CG-related information is a strategic response of the MNEs to gain legitimacy in corrupt environments.

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Section: Conceptual Foundationsmentioning

confidence: 99%

Section: Theoretical Foundations and Hypotheses Developmentmentioning

confidence: 99%

Section: Disclosure Legitimacy and Agency Issuesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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MNEs’ corporate governance disclosure: a strategic response to corrupt environments

Juliao‐Rossi

Losada-Otálora

Católico-Segura

2022

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“…Environmental reporting practices are means of communicating to the stakeholders the efforts made by firms to reduce or compensate the negative effect of their activities on the environment and its host community (Atif et al , 2020; Plumlee et al , 2015; Sial et al , 2021; Sun et al , 2020). Thus, a firm would become environmentally responsible when it incorporates environmental accounting as part of its business strategy and accounts for its environment by disclosing its intervention to mitigating the negative operational impact on the environment (Ellimäki et al , 2019; Manita et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

Corporate board gender, institutional strength and energy disclosure in Nigeria

Jibril¹,

Isa

Maigoshi

2022

JCEFTS

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Purpose The study aims to evaluate the impact of corporate board gender on the energy disclosure with moderating effect of institutional strength (global competitiveness index) by the listed firms in Nigeria. Design/methodology/approach The study uses a sample of 49 non-financial firms listed on the floor of the Nigerian stock exchange commission for the period of five years (2016–2020). The study uses content analysis techniques to obtain data on environmental disclosure through the use of Global Reporting Initiative standards from the sampled firms. Random and fixed effect regression analyses were run for both direct and moderation models. Based on the results of the Hausman tests, random results were adopted and used in examining the relationship among research variables. Findings The study revealed average energy disclosure by the sampled firms. The overall results of the regression analysis found that board gender diversity is significantly related to energy disclosure. The institutional strength moderation result was found to have an insignificant impact on the relationship between board gender and energy disclosure. Research limitations/implications The study is constrained by not considering all environmentally sensitive firms in the country. Furthermore, the study considered only gender among numerous important board attributes. Hence, other important board attributes should be assessed for better energy disclosure. Future studies should consider data from all sensitive firms and other board attributes. Practical implications Recently, the Nigerian Government mandates all firms to comply with environmental disclosure in Nigeria, this should be used as a way forward to encourage and compel all listed firms to improve their energy disclosure. Social implications With diverse and vibrant women on boards, firms would benefit and gain legitimacy across demographic, ethnic and religious groups in the society. Hence, corporate bodies can effectively contribute toward enhancing the social welfare of various segments of society. Originality/value To the best of the authors’ knowledge, this is the first study that provides empirical evidence on the effect of board gender attributes on the energy disclosure using institutional strength as a moderator in Nigeria.

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Corporate governance perspective on environmental reporting: Literature review and future research agenda

Aluchna,

Roszkowska‐Menkes,

Khan

2023

Corp Soc Responsibility Env

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The last three decades have witnessed substantial growth in the literature exploring the motives and drivers of corporate greening. Extant research analyzing the governance determinants of corporate environmental disclosure provides competing and contrasting results; despite the growing sustainability challenges create an urgent need for effective monitoring and incentive mechanisms to promote corporate transparency and accountability. This warrants further inquiry in the field, yet very few comprehensive reviews have been presented on governance determinants of corporate environmental disclosure. To fill this gap we conduct a systematic review of 121 published papers and distinguish the governance mechanisms fostering corporate environmental disclosure. Our paper identifies factors influencing the adoption, extant, and quality of environmental disclosure, and provides useful future research directions.

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Do global firms increase their environmental disclosure and performance? Symbolic versus effective operations and the moderating role of liability of origin. Legitimation implications

Cited by 16 publications

References 58 publications

MNEs’ corporate governance disclosure: a strategic response to corrupt environments

MNEs’ corporate governance disclosure: a strategic response to corrupt environments

Corporate board gender, institutional strength and energy disclosure in Nigeria

Corporate governance perspective on environmental reporting: Literature review and future research agenda

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