IDEAS home Printed from https://ideas.repec.org/a/eee/bracre/v37y2005i2p231-248.html
   My bibliography  Save this article

Quantity versus quality: the impact of environmental disclosures on the reputations of UK Plcs

Author

Listed:
  • Hasseldine, J.
  • Salama, A.I.
  • Toms, J.S.

Abstract

The theoretical framework of this paper integrates quality-signalling theory and the resource based view of the firm to test the differential effects of the quantity and quality of environmental disclosures on the firm's environmental reputation. Uniquely, the study uses a quality-adjusted method of content analysis, so that sentences are not merely counted but also weighted to reflect their likely significance. Investments in research and development and diversification, as potential methods of enhancing of environmental reputation, are also considered. In doing so the paper complements and extends the work of [Toms, J.S., 2002. Firm resources, quality signals and the determinants of corporate environmental reputation: some UK evidence. British Accounting Review 34 (3), 257–282]. The results confirm the framework and models tested in the original paper on more recent data and also suggest that quality of environmental disclosure rather than mere quantity has a stronger effect on the creation of environmental reputation amongst executive and investor stakeholder groups. Research and development expenditure, and under certain circumstances, diversification, also add to reputation.

Suggested Citation

  • Hasseldine, J. & Salama, A.I. & Toms, J.S., 2005. "Quantity versus quality: the impact of environmental disclosures on the reputations of UK Plcs," The British Accounting Review, Elsevier, vol. 37(2), pages 231-248.
    • Handle: RePEc:eee:bracre:v:37:y:2005:i:2:p:231-248
    DOI: 10.1016/j.bar.2004.10.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S089083890500017X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.bar.2004.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    2. Christian Chan & Markus Milne, 1999. "Investor reactions to corporate environmental saints and sinners: an experimental analysis," Accounting and Business Research, Taylor & Francis Journals, vol. 29(4), pages 265-279.
    3. Patten, Dennis M., 1991. "Exposure, legitimacy, and social disclosure," Journal of Accounting and Public Policy, Elsevier, vol. 10(4), pages 297-308.
    4. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    5. Herremans, Irene M. & Akathaporn, Parporn & McInnes, Morris, 1993. "An investigation of corporate social responsibility reputation and economic performance," Accounting, Organizations and Society, Elsevier, vol. 18(7-8), pages 587-604.
    6. Ingram, Rw & Frazier, Kb, 1980. "Environmental Performance And Corporate Disclosure," Journal of Accounting Research, Wiley Blackwell, vol. 18(2), pages 614-622.
    7. Roberts, Robin W., 1992. "Determinants of corporate social responsibility disclosure: An application of stakeholder theory," Accounting, Organizations and Society, Elsevier, vol. 17(6), pages 595-612, August.
    8. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    9. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Neu, D. & Warsame, H. & Pedwell, K., 1998. "Managing public impressions: environmental disclosures in annual reports," Accounting, Organizations and Society, Elsevier, vol. 23(3), pages 265-282, April.
    2. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    3. Samy Garas & Osama El-Temtamy, 2020. "The “simultaneous cycle” between corporate social responsibility and firms’ financial performance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 39-50, September.
    4. Sudipta Bose & Amitav Saha & Indra Abeysekera, 2020. "The Value Relevance of Corporate Social Responsibility Expenditure: Evidence from Regulatory Decisions," Abacus, Accounting Foundation, University of Sydney, vol. 56(4), pages 455-494, December.
    5. Elena Platonova & Mehmet Asutay & Rob Dixon & Sabri Mohammad, 2018. "The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector," Journal of Business Ethics, Springer, vol. 151(2), pages 451-471, August.
    6. Sergio Vergalli & Laura Poddi, 2009. "Does Corporate Social Responsibility Affect the Performance of Firms?," Working Papers 2009.52, Fondazione Eni Enrico Mattei.
    7. Varsha Sehgal & Naval Garg & Jagvinder Singh, 2023. "Impact of sustainability performance & reporting on a firm’s reputation," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 228-240, February.
    8. Nour Chams & Josep García-Blandón & Khaled Hassan, 2021. "Role Reversal! Financial Performance as an Antecedent of ESG: The Moderating Effect of Total Quality Management," Sustainability, MDPI, vol. 13(13), pages 1-18, June.
    9. Laura Poddi & Sergio Vergalli, 2008. "Does Corporate Social Responsibility Affect Firms' Performance?," Working Papers 0809, University of Brescia, Department of Economics.
    10. Wafa Sahraoui & Rimvie Enoc Kabore, 2021. "The relationship between Corporate Social Responsibility and performance: the moderating effect of financial leverage," Working Papers hal-03503462, HAL.
    11. Amel Ben Rhouma & Marie-José Scotto, 2011. "Implications du principe de matérialité sur le contenu du reporting Développement Durable," Post-Print hal-00646525, HAL.
    12. Monica Singhania & Dimple Gupta, 2024. "Impact of Environmental, Social and Governance (ESG) disclosure on firm risk: A meta‐analytical review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3573-3613, July.
    13. Jane Andrew & Max Baker, 2020. "Corporate Social Responsibility Reporting: The Last 40 Years and a Path to Sharing Future Insights," Abacus, Accounting Foundation, University of Sydney, vol. 56(1), pages 35-65, March.
    14. José Allouche & Patrice Laroche, 2005. "A Meta-analytical investigation of the relationship between corporate social and financial performance," Post-Print hal-00923906, HAL.
    15. Thanh Hung Nguyen & Quang Trong Vu & Duc Minh Nguyen & Hoang Long Le, 2021. "Factors Influencing Corporate Social Responsibility Disclosure and Its Impact on Financial Performance: The Case of Vietnam," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    16. Kalpana Tokas & Kartik Yadav, 2023. "Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market," Global Business Review, International Management Institute, vol. 24(6), pages 1302-1325, December.
    17. Stephen Brammer & Stephen Pavelin, 2006. "Voluntary Environmental Disclosures by Large UK Companies," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(7‐8), pages 1168-1188, September.
    18. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    19. Denis Cormier & Marie-Josée Ledoux & Michel Magnan, 2010. "The Informational Contribution of Social and Environmental Disclosures for Investors," Post-Print hal-00481571, HAL.
    20. MuiChing Chan & John Watson & David Woodliff, 2014. "Corporate Governance Quality and CSR Disclosures," Journal of Business Ethics, Springer, vol. 125(1), pages 59-73, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bracre:v:37:y:2005:i:2:p:231-248. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/the-british-accounting-review .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.