Soft law, institutional signalling – Thai corporate environmental disclosures

Abstract

Purpose

This study aims to examine the impact of soft law and institutional signalling on voluntary reporting of environmentally sensitive companies in Thailand.

Design/methodology/approach

Environmental disclosures in annual reports and sustainability reports of 108 listed companies for the years 2010–2014 were analysed using a checklist of un-weighted scores combined with panel data modelling.

Findings

The results show increasing trends of voluntary reporting dominated by disclosures on emissions data. Thai sustainability reporting guidelines released in 2012 were found to have a significant effect on the amount of disclosures of companies in the agriculture and food sector only. Results show that the age of the company and media attention have a significant positive relationship with environmental disclosures. Profitability is found to have a negative relationship with the level of environmental disclosures.

Research limitations/implications

This study adds to existing environmental reporting literature from the perspective of soft law and institutional signalling and their impact on environmental reporting in the context of an economically developing, environmentally sensitive and in a Buddhist cultural setting country, Thailand.

Originality/value

This paper looks at Thai environmental disclosures from the perspective of soft law and institutional signalling, which is an original and unique contribution to CSR literature, considered through the lens of institutional legitimacy.

Citation

Wichianrak, J., Wong, K., Khan, T., Siriwardhane, P. and Dellaportas, S. (2022), "Soft law, institutional signalling – Thai corporate environmental disclosures", Social Responsibility Journal, Vol. 18 No. 2, pp. 205-220. https://doi.org/10.1108/SRJ-08-2019-0282