Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures

Ali Meftah Gerged

doi:10.1002/bse.2642

journal article Open Access Oct 25, 2020

Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures

Ali Meftah Gerged

Business Strategy and the Environment Vol. 30 No. 1 pp. 609-629 · Wiley

View at Publisher Save 10.1002/bse.2642

Abstract

AbstractThis study seeks to examine whether internal corporate governance (CG) mechanisms affect corporate environmental disclosure (CED) in emerging economies. Using a sample of 500 firm‐year observations, this study distinctively applies a linear panel quantile regression (PQR) model to examine the CG–CED nexus in Jordan. This technique is supplemented with conducting a two‐step dynamic generalised method of moment (GMM) model to overcome any potential occurrence of endogeneity problems. This study reports an increasing trend in CED practice among the sampled companies over the period of analysis, yet it is still at an early stage as compared with their developed counterparts. Furthermore, this study suggests that board size, board independence, CEO duality and foreign ownership have positive associations with CED. In contrast, managerial ownership, institutional ownership and ownership concentration are negatively associated with the disclosed amount of environmental information in the Jordanian context. Theoretically, board structures appeared to be more efficient than ownership structures in reducing agency conflicts by addressing the asymmetric gap of information and promoting the disclosure of environmental information. These findings add to the debate about whether ownership structures detrimental to CED in developing economies. Specifically, when it comes to spending money on CED, owners seemed to be more concerned about any reductions in their share of the pie and may, therefore, be less motivated to disclose their companies' environmental information. This paper provides managers, owners and policymakers with a set of context‐specific recommendations related to the crucial need for a more concerted effort to integrate governance and environmental regulations in order to ensure sustainability in emerging markets.

Topics

No keywords indexed for this article. Browse by subject →

References

123

[1]

10.1111/j.1467-8683.2006.00515.x

[2]

10.1515/jeb-2016-0007

[3]

10.1108/jfrc-07-2015-0035

[4]

Alghamdi S.(2012).Investigation into earnings management practices and the role of corporate governance and external audit in emerging markets: Empirical evidence from Saudi listed companies.(Doctoral dissertation Durham University).

[5]

10.1108/cg-05-2018-0183

[6]

Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review

Waris Ali, Jedrzej George Frynas, Zeeshan Mahmood

Corporate Social Responsibility and Environmental... 10.1002/csr.1410

[7]

Al‐Sharari S. "The legal framework for nuclear energy and the nuclear program in the Hashemite Kingdom of Jordan" Journal of Politics and Law (2014)

[8]

10.1108/arj-03-2018-0060

[9]

ASE Annual Report. (2015) “Amman Stock Exchange”. Available at:http://ase.com.jo/sites/default/files/Annual_Report_%202015_en.pdf

[10]

10.1108/srj-01-2017-0001

[11]

Bani Khalid T. "The impact of corporate characteristics on social and environmental disclosure (CSED): The case of Jordan" Journal of Accounting and Auditing: Research and Practice (2017)

[12]

Barako D. G. "Determinants of voluntary disclosures in Kenyan companies annual reports" African Journal of Business Management (2007)

[13]

Barako D. "Relationship between corporate governance attributes and voluntary disclosures in annual reports: The Kenyan experience" Financial Reporting, Regulation and Governance (2006)

[14]

10.1016/j.intacc.2014.04.003

[15]

Baum Christopher F. (2013). “Quantile regression”http://fmwww.bc.edu/EC-C/S2013/823/EC823.S2013.nn04.slides.pdf

[16]

10.1111/j.0023-5962.2004.00257.x

[17]

Bell E. (2018)

[18]

Bland J. M. "Cronbach's alpha" BMJ (Clinical Research Ed.) (1997) 10.1136/bmj.314.7080.572

[19]

10.1016/s0304-4076(98)00009-8

[20]

10.1002/bse.506

[21]

10.1016/j.jclepro.2015.07.099

[22]

Chang K. "The effect of ownership and capital structure on environmental information disclosure: Empirical evidence from Chinese listed electric firms" WSEAS Transaction on Systems (2013)

[23]

Chang K. "The effects of ownership and capital structure on environmental information disclosure: Empirical evidence from Chinese listed electric firms" TERI Information Digest on Energy and Environment (2013)

[24]

Chang K. "The effects of corporate ownership structure on environmental information disclosure empirical evidence from unbalanced penal data in heavy‐pollution industries in China" WSEAS Transaction on System and Control (2015)

[25]

10.1016/j.intaccaudtax.2010.07.002

[26]

10.1016/j.jbankfin.2016.06.013

[27]

10.1002/bse.1829

[28]

Cowton C. J. "Making a contemporary contribution using old data: Reflections on delayed doctorates" International Journal of Management Education (2019)

[29]

10.1111/joes.12055

[30]

10.1002/bse.1865

[31]

Department of Statistics‐Jordan. (2016). ‘Jordan in figures’. Available at:http://web.dos.gov.jo/(Accessed 13 November 2016).

[32]

Dintimala Y. "The effect of ownership structure, financial and environmental performances on environmental disclosure" Accounting Analysis Journal (2018)

[33]

10.2307/258191

[34]

10.1177/0007650317746108

[35]

10.5539/ijef.v4n10p201

[36]

10.1002/bse.2250

[37]

Ezhilarasi G. "The impact of corporate governance attributes on environmental disclosures: Evidence from India" Indian Journal of Corporate Governance (2017)

[38]

10.1086/260866

[39]

10.1086/467038

[40]

Fernandes S. M. "The influence of boards of directors on environmental disclosure" Management Decision (2019)

[41]

10.1002/bse.729

[42]

10.1057/palgrave.crr.1540226

[43]

10.1590/1982-7849rac2017160053

[44]

Fun A. (2002)

[45]

10.1016/j.jclepro.2017.02.180

[46]

10.1016/j.brq.2016.06.001

[47]

Gerged A. M.(2018).Corporate environmental disclosure in the Arab Middle Eastern and North African region: An institutional perspective(Doctoral dissertation University of Huddersfield).

[48]

10.1108/arj-05-2018-0082

[49]

Gerged A. M. "Is corporate environmental disclosure associated with firm value? A multicountry study of Gulf Cooperation Council firms" Business Strategy and the Environment. Forthcoming (2020)

[50]

10.1002/bse.2021

Showing 50 of 123 references

Cited By

276

Saving the Environment in Emerging Markets: The Synergistic Roles of Corporate Ownership Structure, Financing Strategy, and Innovation Capacity

Wu Ning, Ummar Faruk Saeed · 2025

Business Strategy and the Environme...

From measurement to impact: How resource efficiency accounting strengthens corporate environmental performance and social responsibility

Nguyen Phu Giang, Cao Hong Loan · 2025

Journal of Open Innovation: Technol...

Driving Circular Economy Strategies for Sustainable Development: The Role of Board Capital and Innovation Capacity in Emerging Markets

Ishmael Wiredu, Naiping Zhu · 2025

Business Strategy and the Environme...

Advancing ESG Performance in MENA Economies: Do Governance Structures and Eco‐Technology Matter?

Naiping Zhu, Timothy Masuni Nagriwum · 2025

Corporate Social Responsibility and...

Synergizing CEO capability and green innovation intensity to drive ESG disclosure: insights from contemporaneous correlation techniques

Timothy Masuni Nagriwum, Ummar Faruk Saeed · 2025

SN Business & Economics

New path to green transformation: Exploring the impact of corporate governance on environmental information disclosure quality of new energy companies

Jihong Sun, Lei Zheng · 2025

Journal of Environmental Management

The moderating role of technological innovation on ownership structure, financing decisions and environmental accounting disclosure

Ummar Faruk Saeed, Rabiatu Kamil · 2024

Cogent Business & Management

Stakeholders’ perspectives on critical success factors for environmental social and governance (ESG) implementation

Muhammad Sani Khamisu, Ratna Achuta Paluri · 2024

Journal of Environmental Management

A Study on the Impact of Board Characteristics on the Environmental, Social, and Governance (ESG) Responsibilities of Listed Companies—Evidence from Chinese Listings

Haoming Ding, Zerui Wang · 2024

Sustainability

Green Governance: How ESG Initiatives Drive Financial Performance in UK Firms?

Ahmed Saber Moussa, Mahmoud Elmarzouky · 2024

Sustainability

An assessment of methods to deal with endogeneity in corporate governance and reporting research

Saleh F.A. Khatib · 2024

Corporate Governance: The internati...

Addressing corporate governance and carbon accounting disclosure gaps: A path toward firms commitment to sustainable development goal 13

Naiping Zhu, Ishmael Wiredu · 2024

Sustainable Development

Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective

Tingli Liu, Aya Abdelbaky · 2023

Heliyon

Environmental benefits of enterprise digitalization in China

Mengling Zhou, Kangqi Jiang · 2023

Resources, Conservation and Recycli...

Environmental accounting and performance: empirical evidence from China

Andrew Osei Agyemang, Kong Yusheng · 2023

Environment, Development and Sustai...

Environmental Information Disclosure and Corporate Green Innovation: The Moderating Effect of Formal and Informal Institutions

Xiyan Bai, Chan Lyu · 2023

Sustainability

Environmental information disclosure and corporate innovation: The “Inverted U-shaped” regulating effect of media attention

Yuanda Luo, Guobao Xiong · 2022

Journal of Business Research

Sustainable corporate governance: A review of research on long‐term corporate ownership and sustainability

Nikolaos Kavadis, Steen Thomsen · 2022

Corporate Governance: An Internatio...

Does the presence of an environmental committee strengthen the impact of board gender diversity on corporate environmental disclosure? Evidence from sub‐Saharan Africa

Ali Meftah Gerged, Aruoriwo Marian Chijoke‐Mgbame · 2022

Business Strategy and the Environme...

Linking green supply chain management practices with competitiveness during covid 19: The role of big data analytics

Qingyu Zhang, Bohong Gao · 2022

Technology in Society

Metrics

276

Citations

123

References

Details

Published: Oct 25, 2020
Vol/Issue: 30(1)
Pages: 609-629
License: View

Authors

A

Ali Meftah Gerged

Leicester Castle Business School De Montfort University UK; Faculty of Economics Misurata University Libya

Cite This Article

Ali Meftah Gerged (2020). Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures. Business Strategy and the Environment, 30(1), 609-629. https://doi.org/10.1002/bse.2642

Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures

You May Also Like