Do students have satisfying educational experiences at sustainable universities? Evidence from Australian universities

Drawing on a sample of Australian universities from 2012 to 2018, we investigate the association between the extent of university sustainability disclosure and student satisfaction. University sustainability disclosures are critical for communicating with key stakeholders when seeking resources, thereby facilitating student satisfaction. Using hand-collected data from university annual reports and the Student Experience Survey, we find that the extent of university sustainability disclosure is positively associated with student satisfaction in both short and long terms. Our channel analysis suggests that sustainability disclosures help universities attract increased government funding and student income. Moreover, universities with a greater extent of sustainability disclosure offer better employee benefits and are more likely to invest in student facilities, engagement and activities. In cross-sectional tests, we find that the effect of sustainability disclosures is contingent on public monitoring, organisational culture and managerial environmental awareness. We also show that sustainability disclosures can help universities mitigate the adverse effects of reputational risks and promote university rankings through enhanced student satisfaction. Our findings remain robust to an array of endogeneity tests. The findings of this study provide important implications for policymakers and regulators, sustainability reporting standard setters and university management.