The Power of Comparability: How Improved Financial Reporting Leads to Better Environmental Outcomes for Firms
Tracks
Gallery 1
Monday, July 1, 2024 |
4:45 PM - 5:00 PM |
Presenter
Dr Sandip Dhole
Senior Lecturer
Monash University
The Power of Comparability: How Improved Financial Reporting Leads to Better Environmental Outcomes for Firms
Abstract
This study examines the association between financial statement comparability (comparability) and environmental performance. We find that there is a positive relationship between comparability and environmental performance, indicating that comparability provides additional information motivating managers to enhance environmental practices. The association is stronger for firms with stronger CSR strategies, those operating in US states with Democratic governments, firms with greater litigation risk, and those whose CEOs have sustainability-linked compensation. We find that the association between comparability and environmental performance is mediated by information asymmetry comparability affects environmental performance by reducing information asymmetry.
Biography
Chair
Solomon Opare
Senior Lecturer
Massey University