Environmental disclosure and its relation to waste performance
ISSN: 2049-372X
Article publication date: 3 November 2022
Issue publication date: 13 November 2023
Abstract
Purpose
This paper aims to examine the association between environmental disclosure and waste performance.
Design/methodology/approach
This study is based on a sample of S&P 500 firms over a nine-year period from 2010 to 2018. The pooled ordinary least squares (OLS), logistic, propensity score matching (PSM) and instrumental variable-generalized method of moments regressions analyses have been used to examine the data.
Findings
The findings show a significant positive relationship between waste performance and environmental disclosure, suggesting that firms with superior waste performance tend to disclose more environmental information. Further, the authors distinguish between “hard” and “soft” environmental disclosures and find that the effect of waste performance is consistently positive and significant for each type. The observed positive and significant association of waste performance with environmental disclosure remains unchanged, regardless of the industry affiliation of firms, although firms from industries that are less environmentally sensitive provide a slightly higher level of environmental disclosure. The authors also explore possible channels that may explain the association between waste performance and environmental disclosure and find that litigation risk and cash holdings positively moderate the association. The finding remains robust to a number of alternative estimation approaches.
Originality/value
Overall, the authors present important evidence that waste performance is an important indicator of environmental disclosure. The findings are useful for corporations and stakeholders and have important implications around the globe as the authors continue to grapple with the ongoing issue of waste.
Keywords
Acknowledgements
The authors would like to thank the Editor-in-Chief Warren Maroun, Associate Editor Muhammad Nadeem and the anonymous referees for their insightful comments.
Citation
Benjamin, S.J., Biswas, P.K., Wellalage, N.H. and Man, Y. (2023), "Environmental disclosure and its relation to waste performance", Meditari Accountancy Research, Vol. 31 No. 6, pp. 1545-1577. https://doi.org/10.1108/MEDAR-04-2021-1261
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited