Is voluntary external assurance relevant for the valuation of environmental reporting by firms in environmentally sensitive industries?
| Autor: | Haithem Nagati, Ikram Radhouane, Mehdi Nekhili, Gilles Paché |
|---|---|
| Přispěvatelé: | Groupe d'Analyse des Itinéraires et des Niveaux Salariaux (GAINS), Le Mans Université (UM), Pôle de Recherche - Rouen Business School, Rouen Business School, Centre de Recherche sur le Transport et la Logistique (CRET-LOG), Aix Marseille Université (AMU), emlyon business school, business school, emlyon |
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Accounting
Shareholder 0502 economics and business Environmentally sensitive industries Endogeneity [SHS.ECO] Humanities and Social Sciences/Economics and Finance Market value ComputingMilieux_MISCELLANEOUS Generalized method of moments Valuation (finance) Renewable Energy Sustainability and the Environment business.industry 05 social sciences Assurance Voluntary environmental disclosure 050201 accounting [SHS.ECO]Humanities and Social Sciences/Economics and Finance General Business Management and Accounting Turnover [SHS.GESTION]Humanities and Social Sciences/Business administration Business France [SHS.GESTION] Humanities and Social Sciences/Business administration Capital market 050203 business & management Environmental reporting |
| Zdroj: | Sustainability Accounting, Management and Policy Journal Sustainability Accounting, Management and Policy Journal, 2019, ahead-of-print (ahead-of-print), ⟨10.1108/SAMPJ-06-2018-0158⟩ Sustainability Accounting, Management and Policy Journal, 2019 |
| ISSN: | 2040-8021 |
| DOI: | 10.1108/SAMPJ-06-2018-0158⟩ |
| Popis: | PurposeThis paper aims to investigate whether providing voluntary external assurance on voluntary environmental information by firms operating in environmentally sensitive industries (ESI) is relevant in terms of market value. It also examines how various characteristics of assurance statements (i.e. level of assurance, scope of assurance and provider of assurance) affect the value-relevance of environmental disclosure by ESI firms.Design/methodology/approachTo mitigate the endogeneity problem, the authors use the two-step generalized method of moments estimation approach.FindingsFocusing on annual and social reports of French companies listed in the SBF120 index, results show that environmental disclosure by ESI firms and its assurance are destructive in terms of market value. Moreover, while providing a broader scope of assurance and having a professional accountant as the assurance provider enhance the value relevance of environmental reporting of the whole sample, this is unlikely to be the case for ESI firms. In particular, a higher level of environmental disclosure is financially rewarded by market participants for ESI firms that provide a higher level of assurance.Practical implicationsThe study provides a better understanding of the circumstances under which market participants assign value to voluntary environmental information disclosed by companies operating in ESI. It also provides insights into the value added to different characteristics inherent in the quality of assurance provided with regard to environmental disclosure.Social implicationsThe study indicates that the institutional context of the relationship between the firm and its shareholders influence the value obtained from assurance. Results provide value insights regarding cultural and legal dimensions of environmental reporting.Originality/valueThe study extends the prior literature on the capital market benefits of voluntary assurance practices by focusing on the French legal environment. France can be considered as a new institutional context that has been little addressed by the existing literature. |
| Databáze: | OpenAIRE |
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