{"title":"Corporate initial responses to COVID-19 and ESG ratings: the role of ESG consistency","authors":"Nava Cohen, Xiaodi Zhu","doi":"10.1108/sampj-03-2023-0118","DOIUrl":"https://doi.org/10.1108/sampj-03-2023-0118","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to examine the consistency between firms’ stakeholder-friendly responses to the COVID-19 pandemic and their environmental, social and governance (ESG) ratings. Consistent firms are those with high prior ESG ratings that actively support stakeholders during the COVID-19 crisis.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors use data from JUST Capital, which tracks Russell 1000 firms’ actions in response to the pandemic, to examine the relationship between pre-pandemic ESG ratings and their COVID responses towards employees, customers and communities. The authors also analyse the impact of firms’ consistency between pre-pandemic ESG ratings and stakeholder-friendly COVID responses on ESG ratings and stock returns.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>This study finds that firms with higher pre-pandemic ESG ratings are more likely to support their stakeholders during the pandemic. The authors also find that firms with high ESG ratings before the pandemic experience a decline in their ESG ratings if they do not actively support their communities during the COVID-19 crisis, although insufficient employee/customer support does not impact their ESG ratings. Finally, the authors find that firms with higher pre-pandemic ESG ratings that continue to uphold their ESG commitments through community assistance during the pandemic achieve higher stock returns compared to inconsistent firms.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The results reveal gaps in how comprehensively ESG agencies assess firms’ crisis responses, highlighting areas for rating improvements. The findings contribute to sustainable development by revealing the importance of firms upholding their ESG commitments during crises to maintain stakeholder trust and drive long-term value creation.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The findings underscore the need for responsive, transparent ESG rating processes to support the integration of sustainability considerations into corporate practices and investment decisions, particularly during evolving societal expectations during crises.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this study is the first to investigate how pre-pandemic ESG ratings explain firms’ stakeholder-friendly responses during the COVID-19 pandemic and analyse the integration of these responses and pandemic risks into ESG ratings during the crisis.</p><!--/ Abstract__block -->","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"36 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141191800","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mercedes Luque-Vílchez, Javier Husillos, Carlos Larrinaga
{"title":"The construction of the normative persuasion of social and environmental reporting regulation","authors":"Mercedes Luque-Vílchez, Javier Husillos, Carlos Larrinaga","doi":"10.1108/sampj-11-2023-0816","DOIUrl":"https://doi.org/10.1108/sampj-11-2023-0816","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to understand why some social and environmental reporting (SER) regulations are more successful than others in modifying collective corporate reporting behaviour and expectations. More specifically, it presents a qualitative and historically informed exploration of the construction of the enabling conditions for corporate adoption of SER regulation in a national context.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Drawing on insights from structuration theory and the sociological approach to legal studies, the authors examined the normative persuasion of the first regulation in Spain requiring firms to disclose social and environmental information in a stand-alone report: Article 39 of the Spanish Sustainable Economy Law. The case study is based primarily on 38 semi-structured interviews with relevant actors involved in this SER regulation from 2008 to 2014. Other sources such as legal and policy documents, historical documents, books, press reports and field notes from attendance at technical meetings related to the phenomenon under study help inform and complement the analysis of the interviews.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The analysis reveals that the agency of regulators, regulatees and other relevant actors involved in the SER regulation led to the law becoming a dead letter. However, only by examining the structural circumstances, shaped by history and socio-economic context, can the authors understand how the normative persuasion of law is constructed or undermined.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The study underscores the importance of the national context in developing corporate social responsibility (CSR) regulation and the crucial role of history. The results of this research also suggest that significant progress towards a more transformative CSR regulation cannot be achieved without the support of enabling structures/</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Recent SER regulations (European Corporate Sustainability Reporting Directive and IFRS sustainability standards, to mention those that are gaining most traction) may not achieve sufficient compliance if those responsible for drafting them do not ensure that the conditions for the emergence of regulatory persuasion are met. Regulators must therefore have a profound understanding of how these conditions are constructed as part of a historical process inextricably linked to the social structures of the environment in which the law is to be applied.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The study reveals the changing landscape of corporate social responsibility, where scientists, academics, NGO activists and civil society organisations struggle to gain some agency in a field populated by actors, such as trade unions or employers, who were constitutive of Western industrial liberal democracies.</p><!--/ Abstract__bl","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"70 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141170412","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Faisal Alshahrani, Baban Eulaiwi, Lien Duong, Grantley Taylor
{"title":"Climate change disclosure performance and audit fees: evidence from Australia","authors":"Faisal Alshahrani, Baban Eulaiwi, Lien Duong, Grantley Taylor","doi":"10.1108/sampj-07-2023-0509","DOIUrl":"https://doi.org/10.1108/sampj-07-2023-0509","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine the relationship between climate change disclosure performance (CCDP) and audit pricing. The moderating effect of corporate governance characteristics on that relationship is also investigated.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Using a sample of top 300 Australian Securities Exchange listed non-financial firms over the period 2008–2019, this study investigates the association between CCDP and audit fees. The findings are robust to a difference-in-difference test thereby alleviating potential endogeneity concerns.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>CCDP is found to be significantly positively related to external auditor fees.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The findings show some important implications for firm management, regulators, investors and auditors. This study presents empirical evidence that climate change, as a factor of external risk, influences audit fees.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Firms with governance structures characterized by larger more independent boards, larger audit committees and audit committees with a higher level of independence significantly moderate the relationship between CCDP and audit fees.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>Investors’ demand for firm transparency and disclosure of information regarding the risks of climate change, effects and opportunities has increased significantly over the past decade, as these factors could have a significant effect on valuation and investment decisions.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Importantly, stakeholders need to be aware of the costs of climate change, the quantification of climate change impacts and how firms address climate change in their business risk management processes. This study quantifies the impact of CCDP on auditor risk assessments via audit fees.</p><!--/ Abstract__block -->","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"6 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140936597","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Circular economy promotion and disclosure among Canadian municipalities","authors":"Camélia Radu, Gulliver Lux","doi":"10.1108/sampj-06-2023-0445","DOIUrl":"https://doi.org/10.1108/sampj-06-2023-0445","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Municipalities have the potential to become models of the circular economy (CE). This paper aims to examine the impact of the municipal council’s characteristics on municipal CE disclosure and promotion.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This paper is based on the resource dependence and upper echelons theories. For a sample of the 100 largest cities in Canada, a mixed methodology is used to code and analyze data and test the hypotheses.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Municipal councillors’ education and experience related to the environment or sustainability are both likely to affect CE disclosure, and their sector membership (public or private) moderates the relationship between CE disclosure and councillors’ experience. This experience may be reinforced by membership in the private sector, which has applied CE principles more extensively than the public sector has. Municipal councils with a greater number of councillors from the private sector appear to perform better in matters of transparency and to disclose more CE information on their public websites.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Municipalities could use the findings to foster their transition to CE by implementing a CE-related training plan for their councillors. A CE-dedicated section on their websites could improve transparency and inform and educate residents about CE.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The public sector could learn from the private sector’s best practices regarding CE.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This paper contributes to the literature by providing empirical evidence of the transparency and engagement of municipalities toward CE. The authors extend the resource dependence and upper echelons theories to a new context, that of public organizations.</p><!--/ Abstract__block -->","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"37 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140609704","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Issues in sustainability reporting assurance: evidence from interviews","authors":"Sulaiman Aliyu","doi":"10.1108/sampj-07-2023-0457","DOIUrl":"https://doi.org/10.1108/sampj-07-2023-0457","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to examine the processes of sustainability reporting assurance (SRA) and the influence they have on shaping perception from disclosures. Given the evidence of inconsistencies and ambiguities in assurance processes, this paper examines how legitimacy is attained and maintained at different stages of SRA.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Evidence collected from 23 semi-structured interviews with assurance providers (APs), consultants, professionals and non-governmental organisations (NGOs) (non-APs) was used to conduct a thematic analysis from the perspectives of interviewees.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>APs and non-APs are united in recognising the value of SRA, although, perspectives on transparency between the two groups differ. Experience and industry knowledge are essential to SRA delivery with non-APs preferring accounting APs. Nevertheless, non-APs are concerned about the role of companies in deciding assurance scope, as it can affect scrutiny. APs favour data accuracy (as opposed to data relevance) assurance due to team dynamics and internal review influences, with the latter also restricting assurance innovation. APs are interested in accessing better evidence and stakeholder engagement evaluations. Providing advisory services was not rejected by all APs. The perspectives of APs and non-APs demonstrate how progress in SRA has gained pragmatic legitimacy with noticeable gaps that serve to undermine attainment of moral legitimacy.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>SRA is a developing practice that will adopt changes as it continues to mature; some of these changes could impact findings in this research. General perspectives on SRA were sought from interviewees, this affected the ability for an in-depth focus on any of the range of interesting SRA issues that arose over the course of the research. Interviews were conducted with relevant parties in the SRA space that operate in the UK. Perspectives from parties outside the UK were not solicited.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Companies make an important decision to commission SRA. Findings in this research have highlighted specific non-APs issues of concern that can be useful in structuring operations and reporting regimes to facilitate assurance procedures. The findings will also be helpful to APs as they can direct more emphasis on stakeholder concerns towards demonstrating greater stakeholder accountability. Regulatory and standard setters can enact appropriate policies that can potentially drive the practice forward for assessment of cognitive legitimacy.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The findings provide relevant account of stakeholder voices on the quality of corporate disclosures that has a direct effect on the wellbeing of communities and sustainability of societies. Collective stakeholder ","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"26 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140586162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Global investor responses to the International Sustainability Standards Board draft sustainability and climate-change standards: sites of dissonance or consensus","authors":"John Millar, Richard Slack","doi":"10.1108/sampj-03-2023-0128","DOIUrl":"https://doi.org/10.1108/sampj-03-2023-0128","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to examine sites of dissonance or consensus between global investor responses to the draft standards, International Financial Reporting Standards S1 (IFRS) (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures), issued by the International Sustainability Standards Board (ISSB).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>A thematic content analysis was used to capture investor views expressed in their comment letters submitted in the consultation period (March to July 2022) in comparison to the ex ante position (issue of draft standards, March 2022) and ex post summary feedback (ISSB staff papers, September 2022) of the ISSB.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>There was investor consensus in support of the ISSB and the development of the draft standards. However, there were sites of dissonance between investors and the ISSB, notably regarding the basis and focus of reporting (double or single/financial materiality and enterprise value); definitional clarity; emissions reporting; and assurance. Incrementally, the research further highlights that investors display heterogeneity of opinion.</p><!--/ Abstract__block -->\u0000<h3>Practical and Social implications</h3>\u0000<p>The ISSB standards will provide a framework for future sustainability reporting. This research highlights the significance of such reporting to investors through their responses to the draft standards. The findings reveal sites of dissonance in the development and alignment of draft standards to user needs. The views of investors, as primary users, should help inform the development of sustainability-related standards by a global standard-setting body apposite to current policy and future reporting requirements, and their usefulness to users in practice.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this paper makes an original contribution to the comment letter literature, hitherto focused on financial reporting with a relative lack of investor engagement. Using thematic analysis, sites of dissonance are examined between the views of investors and the ISSB on their development of sustainability reporting standards.</p><!--/ Abstract__block -->","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"143 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140586274","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
María Jesús Barroso-Méndez, Maria-Luisa Pajuelo-Moreno, Dolores Gallardo-Vázquez
{"title":"A meta-analytic review of the sustainability disclosure and reputation relationship: aggregating findings in the field of social and environmental accounting","authors":"María Jesús Barroso-Méndez, Maria-Luisa Pajuelo-Moreno, Dolores Gallardo-Vázquez","doi":"10.1108/sampj-04-2022-0168","DOIUrl":"https://doi.org/10.1108/sampj-04-2022-0168","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Previous research has explored the link between sustainability disclosure and reputation but produced contradictory results. This study aims to clarify the sustainability disclosure–reputation relationship through a quantitative analysis of the correlations between these variables reported in empirical research papers. The second objective was to determine how various moderators affect the sustainability disclosure–reputation link.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The meta-analysis was based on a systematic review of the literature covering empirical research on the corporate sustainability disclosure and reputation relationship. A total of 92 articles were meta-analyzed to compile their findings on four extrinsic moderators: company size, ownership, stock listing status and activity sector.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings confirm that a significant positive correlation exists between corporate sustainability disclosure and reputation. The moderator analysis also revealed that companies’ different characteristics can explain researchers’ divergent results.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The results have considerable practical relevance for organizational management. First, they can motivate managers to improve and disclose their company’s social and environmental impacts to strengthen their reputation, which in turn will help accelerate the achievement of the Sustainable Development Goals. Second, the findings can ensure organizations develop disclosure and reputation management strategies adapted for each firm’s size, ownership, stock listing status and activity sector.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The results have considerable practical relevance for organizational management. First, they can motivate managers to improve and disclose their company’s social and environmental impacts to strengthen their reputation, which in turn will help accelerate the achievement of the Sustainable Development Goals. Second, the findings can ensure organizations develop disclosure and reputation management strategies adapted for each firm’s size, ownership, stock listing status and activity sector.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this meta-analysis is the first to clarify the link between disclosure and reputation, which makes a unique contribution to the field of social and environmental accounting. A larger sample of primary research was collected, and key extrinsic moderators were examined to explain prior studies’ contradictory findings.</p><!--/ Abstract__block -->","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"55 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-03-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140156933","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Catalyzing the growth of green bonds: a closer look at the drivers and barriers of the Canadian green bond market","authors":"Vasundhara Saravade, Olaf Weber","doi":"10.1108/sampj-08-2023-0604","DOIUrl":"https://doi.org/10.1108/sampj-08-2023-0604","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to examine the Canadian financial sector’s reaction to opportunities and risks created by the green bond market in a low-carbon and climate-resilient (LCR) economy.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors used a concurrent mixed methodological approach that undertakes an online survey and semistructured interviews with critical green bond market stakeholders.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The most significant market driver in Canada is the reputational benefit for stakeholders, i.e. its ability to meet the high demand for sustainable finance and the marketing potential of its green credentials. The major market barriers are transactional costs, i.e. additional tracking required for reporting purposes, lack of market liquidity and identification of environmental impact or additionality. Canadian green bonds are also more likely to be evaluated on their green impact than their global market peers.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>Limitations of this study include its focus on Canada, which may exclude or not apply to drivers and barriers in other green bond markets.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The paper helps create an accounting-based conceptual framework for key motivations and barriers that affect financial decision-making regarding green bonds.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The authors identify economic and policy-related barriers and drivers for green bonds, addressing the financing gap for the LCR economy.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this study is the first to identify and compare Canadian green bond market drivers and barriers and to examine relevant stakeholder- and policy-related approaches that can be targeted to scale this market effectively.</p><!--/ Abstract__block -->","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"18 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140007653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Negative media coverage of ESG issues and corporate tax avoidance","authors":"Luca Menicacci, Lorenzo Simoni","doi":"10.1108/sampj-01-2023-0024","DOIUrl":"https://doi.org/10.1108/sampj-01-2023-0024","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate the role of negative media coverage of environmental, social and governance (ESG) issues in deterring tax avoidance. Inspired by media agenda-setting theory and legitimacy theory, this study hypothesises that an increase in ESG negative media coverage should cause a reputational drawback, leading companies to reduce tax avoidance to regain their legitimacy. Hence, this study examines a novel channel that links ESG and taxation.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study uses panel regression analysis to examine the relationship between negative media coverage of ESG issues and tax avoidance among the largest European entities. This study considers different measures of tax avoidance and negative media coverage.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results show that negative media coverage of ESG issues is negatively associated with tax avoidance, suggesting that media can act as an external monitor for corporate taxation.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The findings have implications for policymakers and regulators, which should consider tax transparency when dealing with ESG disclosure requirements. Tax disclosure should be integrated into ESG reporting.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The study has social implications related to the media, which act as watchdogs for firms’ irresponsible practices. According to this study’s findings, increased media pressure has the power to induce a better alignment between declared ESG policies and tax strategies.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes to the literature on the mechanisms that discourage tax avoidance and the literature on the relationship between ESG and taxation by shedding light on the role of media coverage.</p><!--/ Abstract__block -->","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"26 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139771346","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mawih Kareem Al Ani, Faris ALshubiri, Habiba Al-Shaer
{"title":"Sustainable products and audit fees: empirical evidence from western European countries","authors":"Mawih Kareem Al Ani, Faris ALshubiri, Habiba Al-Shaer","doi":"10.1108/sampj-03-2023-0131","DOIUrl":"https://doi.org/10.1108/sampj-03-2023-0131","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine whether firms that appear to exhibit high sustainable outputs are more likely to pay higher audit fees than firms without such outputs.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The sustainability outputs are measured using a sustainable product portfolio consisting of four products: clean energy products, eco-design products (EDP), environmental products (EP) and sustainable building projects (SBP). The audit fee variable is measured by the natural logarithm of the total amount of audit fees. The study tests two models of the association between these outputs and audit fees; Model 1 tests this association in the absence of the moderating variable (sustainability committee), and Model 2 tests the association in the presence of the moderating variable.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>An analysis of data on 261 European firms from the Refinitiv Eikon database from 2010 to 2019 shows that high sustainability outputs are significantly and positively associated with audit fees. More importantly, this association is moderated by the presence of a board-level sustainability committee, suggesting that this type of committee reflects a factor considered by auditors in their audit risk assessment practices. The findings indicate that in Model 1, one (EP) out of four variables has a significant and positive association with audit fees, while in Model 2 and in the presence of sustainability committee, two variables (EP and EDP) have a significant and negative association with audit fees. However, the robust analysis shows that three variables (EP, EDP and SBP) have significant and negative associations with audit fees.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The study findings have important implications for policymakers, auditors and firms’ managers. For policymakers, the findings provide support for the argument that sustainable attitudes incentivise firms to manage sustainable product profiles more effectively. As such, policymakers should incentivise firms to establish a sustainability committee and regulate its role and responsibilities. Auditors should coordinate with the sustainability committee to facilitate audit efforts and reduce audit fees.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>Understanding the relationship between sustainable products and audit fees will allow firms to improve their portfolio of sustainable products. In addition, other social implications of this study relate to improving relationships with society by establishing a sustainability committee that is responsible to communicate with that society.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The results support the argument that firms should manage sustainable product portfolios more effectively. In addition, the results of the study highlight the importance of a new variable as a moderator, the sustainability committee, which has ","PeriodicalId":22143,"journal":{"name":"Sustainability Accounting, Management and Policy Journal","volume":"14 1","pages":""},"PeriodicalIF":4.5,"publicationDate":"2024-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139679900","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}