IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v13y2023i2p61-d1069365.html
   My bibliography  Save this article

The Determinants of TCFD Reporting: A Focus on the Italian Context

Author

Listed:
  • Salvatore Principale

    (Dipartimento di Diritto ed Economia delle Attività Produttive, Università degli Studi di Roma “La Sapienza”, 00183 Rome, Italy)

  • Simone Pizzi

    (Dipartimento di Scienze dell’Economia, Università del Salento, 73100 Lecce, Italy)

Abstract

The recommendations of the Task Force on Climate Change Disclosure (TCFD) represent fundamental guidelines for managing climate-change-related risks. Indeed, the TCFD outlines good practices for integrated risk management as well as aims to protect investors and stakeholders through a more transparent and complete disclosure on the subject. However, the adoption of the recommendations was slow and differentiated between countries. The study aims to analyze the determinants that have influenced the voluntary choice of companies to adopt the TCFD recommendations. Using a logistic regression on a sample of Italian public interest entities, the results show that the size of the board, the integration of ESG risks, and the size of the company are variables that influenced the managers’ decision to adopt the guidelines.

Suggested Citation

  • Salvatore Principale & Simone Pizzi, 2023. "The Determinants of TCFD Reporting: A Focus on the Italian Context," Administrative Sciences, MDPI, vol. 13(2), pages 1-12, February.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:2:p:61-:d:1069365
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/13/2/61/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/13/2/61/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eissa A. Al‐Homaidi & Mosab I. Tabash & Najib H. Farhan & Faozi A. Almaqtari, 2019. "The determinants of liquidity of Indian listed commercial banks: A panel data approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1616521-161, January.
    2. Walid Ben‐Amar & Philip McIlkenny, 2015. "Board Effectiveness and the Voluntary Disclosure of Climate Change Information," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 704-719, December.
    3. Juhyun Jung & Kathleen Herbohn & Peter Clarkson, 2018. "Carbon Risk, Carbon Risk Awareness and the Cost of Debt Financing," Journal of Business Ethics, Springer, vol. 150(4), pages 1151-1171, July.
    4. Silvia Panfilo & Joanna Krasodomska, 2022. "Climate Change Risk Disclosure in Europe: The Role of Cultural-Cognitive, Regulative, and Normative Factors," Accounting in Europe, Taylor & Francis Journals, vol. 19(1), pages 226-253, January.
    5. Bikki Jaggi & Alessandra Allini & Riccardo Macchioni & Annamaria Zampella, 2018. "Do investors find carbon information useful? Evidence from Italian firms," Review of Quantitative Finance and Accounting, Springer, vol. 50(4), pages 1031-1056, May.
    6. Faozi A. Almaqtari & Eissa A. Al‐Homaidi & Mosab I. Tabash & Najib H. Farhan, 2019. "The determinants of profitability of Indian commercial banks: A panel data approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 168-185, January.
    7. Simone Pizzi & Francesco Rosati & Andrea Venturelli, 2021. "The determinants of business contribution to the 2030 Agenda: Introducing the SDG Reporting Score," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 404-421, January.
    8. Arturs Kalnins, 2018. "Multicollinearity: How common factors cause Type 1 errors in multivariate regression," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2362-2385, August.
    9. Cedric Dawkins & John Fraas, 2011. "Coming Clean: The Impact of Environmental Performance and Visibility on Corporate Climate Change Disclosure," Journal of Business Ethics, Springer, vol. 100(2), pages 303-322, May.
    10. Jeremy Galbreath, 2010. "Corporate governance practices that address climate change: an exploratory study," Business Strategy and the Environment, Wiley Blackwell, vol. 19(5), pages 335-350, July.
    11. Samira Demaria & Sandra Rigot, 2021. "Corporate environmental reporting: Are French firms compliant with the Task Force on Climate Financial Disclosures' recommendations?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 721-738, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jeanne, Amar & Demaria, Samira & Rigot, Sandra, 2023. "What are the drivers of corporates' climate transparency? Evidence from the S&P 1200 index," Ecological Economics, Elsevier, vol. 213(C).
    2. Beatriz Aibar‐Guzmán & Nicola Raimo & Filippo Vitolla & Isabel‐María García‐Sánchez, 2024. "Corporate governance and financial performance: Reframing their relationship in the context of climate change," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1493-1509, May.

    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. Zahra Borghei, 2021. "Carbon disclosure: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5255-5280, December.
    2. Julián Andres Díaz Tautiva & Joana Huaman & Roberto D. Ponce Oliva, 2024. "Trends in research on climate change and organizations: a bibliometric analysis (1999–2021)," Management Review Quarterly, Springer, vol. 74(1), pages 227-261, February.
    3. Ruiqin Mou & Tao Ma, 2023. "A Study on the Quality and Determinants of Climate Information Disclosure of A-Share-Listed Banks," Sustainability, MDPI, vol. 15(10), pages 1-19, May.
    4. Kentaro Azuma & Akira Higashida, 2024. "Climate change disclosure and evolving institutional investor salience: Roles of the Principles for Responsible Investment," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3669-3686, May.
    5. Mercè Sala‐Ríos, 2024. "What are the determinants affecting cooperatives’ profitability? Evidence from Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 85-111, March.
    6. Naif Alsagr & Stefan F. Van Hemmen Almazor, 2020. "Oil Rent, Geopolitical Risk and Banking Sector Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 305-314.
    7. Liao, Tianlong & Liu, Guanchun & Liu, Yuanyuan & Lu, Rui, 2023. "Environmental regulation and corporate employment revisited: New quasi-natural experimental evidence from China's new environmental protection law," Energy Economics, Elsevier, vol. 124(C).
    8. Larissa Batrancea, 2021. "The Nexus between Financial Performance and Equilibrium: Empirical Evidence on Publicly Traded Companies from the Global Financial Crisis Up to the COVID-19 Pandemic," JRFM, MDPI, vol. 14(5), pages 1-12, May.
    9. Breeda Comyns, 2016. "Determinants of GHG Reporting: An Analysis of Global Oil and Gas Companies," Journal of Business Ethics, Springer, vol. 136(2), pages 349-369, June.
    10. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental disclosure and idiosyncratic risk in the European manufacturing sector," Energy Economics, Elsevier, vol. 87(C).
    11. Rick Hardcopf & Kevin Linderman & Rachna Shah, 2024. "Do Firms Follow through on Environmental Commitments? An Empirical Examination," Sustainability, MDPI, vol. 16(17), pages 1-29, August.
    12. Mohammad Jizi, 2017. "The Influence of Board Composition on Sustainable Development Disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 640-655, July.
    13. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental and financial performance in the European manufacturing sector: An analysis of extreme tail dependency," The British Accounting Review, Elsevier, vol. 52(6).
    14. David Blanco‐Alcántara & Jorge Gallud‐Cano & Félix J. López‐Iturriaga & Óscar López‐de‐Foronda, 2022. "Have European banks maintained their payout policy during the crisis? The role of scrip dividends," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4619-4632, October.
    15. Provaty, Sagira Sultana & Hasan, Mostafa Monzur & Luo, Le, 2024. "Organization capital and GHG emissions," Energy Economics, Elsevier, vol. 131(C).
    16. Meskat Ibne Sharif, 2023. "Parametric test of liquidity wavering in response to the dynamic equity constituents," SN Business & Economics, Springer, vol. 3(1), pages 1-26, January.
    17. Ebrahim Mohammed Al‐Matari, 2023. "The determinants of bank profitability of GCC: The role of bank liquidity as moderating variable—Further analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1423-1435, April.
    18. Maximilian Hettler & Lorenz Graf‐Vlachy, 2024. "Corporate scope 3 carbon emission reporting as an enabler of supply chain decarbonization: A systematic review and comprehensive research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 263-282, February.
    19. Sahil Chopra, 2022. "Are Public Sector Banks in India a Government Failure? -A Comparative Empirical Analysis of Public Sector and Private Sector Banks in India," Working Papers REM 2022/0240, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    20. Mohammed S. Albarrak & Marwa Elnahass & Aly Salama, 2019. "The effect of carbon dissemination on cost of equity," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1179-1198, September.

    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:gam:jadmsc:v:13:y:2023:i:2:p:61-:d:1069365. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.