Environmental Information Disclosure and Financial Constraint

Yao, Sheng; Hong, Yuan; Lin, Chen-Miao

doi:10.1111/ajfs.12277

Cited by 12 publications

(13 citation statements)

References 76 publications

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“…They add that greatly polluting firms are conducting more environmental activities which will lead to reducing their financial constraints. Yao et al (2019) show that disclosing of information may decrease the asymmetric information and probably reduce the financial constraints of firms. One of this information is the firms' environmental practices.…”

Section: Moderating Effect Of Financial Constraints In Environmental mentioning

confidence: 99%

“…Disclosing environmental information will enhance the firm transparency and will offer the stockholders important information concerning the ways that firms handle the environmental concerns. This environmental information will mitigate the ambiguity of investors regarding the interventions of regulatory as well as fines (Yao et al 2019).…”

Section: Moderating Effect Of Financial Constraints In Environmental mentioning

confidence: 99%

“…Second, previous evidences examined the direct relationship between environmental practices and financial constraints (e.g., Yao et al 2019), ESG and financial constraints (e.g., Hong et al 2012) and CSR and capital constraints (e.g., Cheng et al 2014). However, our study differs from previous once as it is the first to investigate the moderating impact of financial constraints on the relationship between environmental disclosure and stock return.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Environmental Sustainability Disclosure on Stock Return of Saudi Listed Firms: The Moderating Role of Financial Constraints

Alsahlawi

Chebbi

Ammer

2021

IJFS

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Environmental sustainability represents nowadays a significant factor for business sector. Firms carry out many initiatives to develop environmental practices. Investors increasingly consider environmental discloser by firms and integrate this disclosure into the investment decision-making process. Using a database of Saudi listed firms, this study adds to the literature by examining the relationship between the environmental sustainability disclosure and stock return and whether this relationship is moderated by the financial constraints. We find that the environmental sustainability disclosure has significant and negative impact on stock return, indicating that investors do not consider environmental disclosure when valuing the stocks. Furthermore, our results propose that the negative impact of environmental disclosure on stock return is more evident in firms with financial constraints. This study provides managerial implications for regulatory authorities, firms and investors. The environmental practices can be value relevant. However, these practices need to be efficiently integrated into stock valuation.

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Section: Moderating Effect Of Financial Constraints In Environmental mentioning

confidence: 99%

Section: Moderating Effect Of Financial Constraints In Environmental mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Impact of Environmental Sustainability Disclosure on Stock Return of Saudi Listed Firms: The Moderating Role of Financial Constraints

Alsahlawi

Chebbi

Ammer

2021

IJFS

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“…Even though the disclosure of this report could help companies to set goals, measure their performance, and manage change in operational activities to become more sustainable [17]. In addition, the disclosure of sustainability reports has the potential to reduce the company's financial constraints [19].…”

Section: Sustainability Reportmentioning

confidence: 99%

Descriptive Analysis of Environmental Performance, Sustainability Report, and Access to Finance

Nareswari¹,

Bramanti²,

Gunawan³

et al. 2022

Proceedings of the 3rd International Conference on Business and Management of Technology (ICONBMT 2021)

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This research aims to identify environmental performance, role of external assurance in sustainability reports, financial access, the quality of sustainability report disclosure and external assurance of a company. The samples are Indonesia non-financial public companies which are listed in the Performance Rating Assessment Program on Environment Management (Program Penilaian Peringkat Kinerja Perusahaan/PROPER) from 2014 to 2019. Using descriptive analysis, this research finds a fairly good environmental performance and an adequate performance of environmental management efforts as required from the observed sample. It also indicates that more than 78% of companies during the year of observation tend to not disclose separate sustainability reports. In addition, the lack of urgency in disclosing separate sustainability reports also reflected on the companies tendency of not using external assurance during the reporting process. This research also showed that financial access of the observed companies has various values with a fairly high value of standard deviation. Furthermore, this research suggests an analysis of the influence and correlation between variables used in this research as potential future studies.

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“…In fact, the disclosure of sustainability reports can help companies to decide their objectives, value its performance, and plan to alter operational activities more sustain (GRI, 2013). In addition, the disclosure of sustainability reports also has the potential to reduce the company's financial constraints which include the inability to obtain loan, issue equity, dependence on bank credits, or the inadequacy of assets (Yao, Hong, & Lin, 2019).…”

Section: Sustainability Reportmentioning

confidence: 99%

Analysis of Sustainability Report Disclosure, External Assurance, Environmental Performance and Financial Access on Non-Financial Sector Companies

Bramanti

Nareswari

Gunawan

et al. 2021

BFJ

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Economic growth in Indonesia is growing rapidly, this further exacerbates the current environmental conditions which are characterized by high levels of pollution, greenhouse gas effects, global warming and the threat of ecosystem extinction. The emergence of various environmental problems that occur today are caused by various sectors, one of which is the industrial sector. As the largest contributor to GDP in Indonesia, the industrial sector which is an IDX listing company has an obligation to have a sustainability report where this report describes economic, social and environmental activities. This sustainability report can provide information symmetry that can be considered by third parties, both financial institutions and investors. This sustainability report must have external quality and assurance so that it is not just a disclosure but can be a reliable sustainability report. Therefore, this study has an aim to analyze the relationship between the sustainability reports quality, the external assurance quality, usage of external assurance, environmental performance and financial access. The sample population are non-financial sector companies listed on the Indonesia Stock Exchange and PROPER during the 2014-2019 period. The analytical method used is panel data regression analysis using STATA.The result of this study found a significant strongly relationship between environmental performance and the quality of sustainability report disclosures on the company's financial access. In contrast, there is an insignificant effect between the quality of external assurance sustainability report disclosure on the financial access of the main sector and manufacturing companies.

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Environmental Information Disclosure and Financial Constraint

Cited by 12 publications

References 76 publications

The Impact of Environmental Sustainability Disclosure on Stock Return of Saudi Listed Firms: The Moderating Role of Financial Constraints

The Impact of Environmental Sustainability Disclosure on Stock Return of Saudi Listed Firms: The Moderating Role of Financial Constraints

Descriptive Analysis of Environmental Performance, Sustainability Report, and Access to Finance

Analysis of Sustainability Report Disclosure, External Assurance, Environmental Performance and Financial Access on Non-Financial Sector Companies

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