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Sustainability Reporting and Corporate Reputation: The Moderating Effect of CEO Opportunistic Behavior

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  • Grzegorz Zimon

    (Department of Finance, Banking, and Accountancy, The Faculty of Management, Rzeszow University of Technology, 35-959 Rzeszow, Poland)

  • Arash Arianpoor

    (Department of Accounting, Attar Institute of Higher Education, Mashhad 9177939579, Iran)

  • Mahdi Salehi

    (Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran)

Abstract

The present study’s main objective is to assess the impact of non-financial sustainability reporting (NFSR) on corporate reputation and the role of the CEO in the opportunistic behavior of companies listed on the Tehran Stock Exchange. In total, 178 firms were assessed for this paper during 2013–2020. In this study for calculating the NFSR, environmental sustainability reporting (ESR), social sustainability reporting (SSR), governance sustainability reporting (GSR) and ethical sustainability reporting (ETSR), Arianpoor and Salehi’s comprehensive and conceptual model has been used. In addition, the literature states that a CEO’s power can be classified as an opportunity for discretion and opportunistic behavior in CEOs that is in contrast with stakeholder demands. To this end, in this study, CEOs’ power has been used as an indicator for the CEO’s opportunistic behavior, and the CEO pay slice (CPS) index was used to calculate the CEO’s level of power. The results revealed that NFSR affects corporate reputation positively. In addition, ESR, SSR, ETSR and GSR positively affect corporate reputation. Moreover, the CEO’s power affects the relationship between NFSR/ESR/SSR/ETSR and corporate reputation. Because managers desire to engage in social and ethical activities, they try to hide the company’s errors and increase its reputation. The results revealed that the CEO’s power did not affect the relationship between GSR and corporate reputation. Since companies in the Tehran Stock Exchange are under intensive supervision, such as in governance, the impact of a CEO’s power and the interaction of a CEO’s power and GSR on company reputation in this study might, thus, not apply to these companies. It is crucial to investigate NFSR, corporate reputation and CEO power within Iran-specific conditions because of differences in emerging markets and developing countries such as Iran, which have diverse ownership structures, economic status, legal systems, government policies, and culture.

Suggested Citation

  • Grzegorz Zimon & Arash Arianpoor & Mahdi Salehi, 2022. "Sustainability Reporting and Corporate Reputation: The Moderating Effect of CEO Opportunistic Behavior," Sustainability, MDPI, vol. 14(3), pages 1-28, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1257-:d:731471
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    Citations

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    Cited by:

    1. Francesco Napoli, 2023. "Corporate Digital Responsibility: A Board of Directors May Encourage the Environmentally Responsible Use of Digital Technology and Data: Empirical Evidence from Italian Publicly Listed Companies," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    2. Jing Wu & Chee Yoong Liew, 2024. "Revisiting the nexus between corporate social responsibility and corporate value: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2066-2085, May.
    3. Arumega Zarefar & Dian Agustia & Noorlailie Soewarno, 2022. "Bridging the Gap between Sustainability Disclosure and Firm Performance in Indonesian Firms: The Moderating Effect of the Family Firm," Sustainability, MDPI, vol. 14(19), pages 1-13, September.
    4. Adesi Michael & Owusu-Manu De-Graft & Boateng Frank & Ahiabu Moses, 2023. "Employee perspective on site accidents and corporate reputation in developing countries," Organization, Technology and Management in Construction, Sciendo, vol. 15(1), pages 50-62, January.
    5. Shenshen Zhang, 2024. "The impact of digital transformation on ESG performance and the moderation of mixed‐ownership reform: The evidence from Chinese state‐owned enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2195-2210, May.
    6. Violeta Jovanović & Sunčica Stanković & Vesna Krstić, 2023. "Environmental, Social and Economic Sustainability in Mining Companies as a Result of the Interaction between Knowledge Management and Green Innovation—The SEM Approach," Sustainability, MDPI, vol. 15(16), pages 1-15, August.
    7. Weizhou Su & Nieping Wei & Zihan Yuan & Sidai Guo, 2023. "The Impact of Environmental Information Disclosure on the Efficiency of Enterprise Capital Allocation," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    8. Alsuhaibani, Waleed & Houmes, Robert & Wang, Daphne, 2023. "The evolution of financial reporting quality for companies listed on the Tadawul Stock Exchange in Saudi Arabia: New emerging markets' evidence," Emerging Markets Review, Elsevier, vol. 55(C).
    9. Vahab Rostami & Hamed Kargar & Mahdis Samimifard, 2022. "The Effect of Managerial Myopia on the Adjustment Speed of the Company’s Financial Leverage towards the Optimal Leverage," JRFM, MDPI, vol. 15(12), pages 1-12, December.
    10. Congbin Cheng & Sayed Fayaz Ahmad & Muhammad Irshad & Ghadeer Alsanie & Yasser Khan & Ahmad Y. A. Bani Ahmad (Ayassrah) & Abdu Rahman Aleemi, 2023. "Impact of Green Process Innovation and Productivity on Sustainability: The Moderating Role of Environmental Awareness," Sustainability, MDPI, vol. 15(17), pages 1-19, August.
    11. Moataz Elmassri & María Luisa Pajuelo & Abdulhadi Ali Alahbabi & Ahmed Mohamed Alali & Moufak Alzitawi & Hamdan Hussain & Khaled Alnabhani & Tariq Elrazaz, 2023. "Student Perceptions of Pedagogical Approaches to Integrating the SDG 8 into Business School Education," Sustainability, MDPI, vol. 15(19), pages 1-22, September.

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