Determinants of Corporate Environment, Social and Governance (ESG) Reporting among Asian Firms

Rashidah Abdul Rahman and Maha Faisal Alsayegh
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Rashidah Abdul Rahman: Department of Accounting, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia
Maha Faisal Alsayegh: Department of Accounting, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia

JRFM, 2021, vol. 14, issue 4, 1-13

Abstract: Departing from previous studies, which have mostly focused on Western countries, our work investigates the determinants of the corporate environment, social and governance (ESG) reporting among Asian firms. Examining Asian public listed firms from 2005 to 2017, our cross-sectional model results indicate that firm characteristics (economic performance, profitability, leverage and size) are found to disclose additional ESG information. The outcome is consistent with the legitimacy theory, which posits that firms provide higher ESG reporting to legitimize and justify the firm’s continuous existence. The findings are important for firms, stakeholders and policymakers. While firms may formulate ways to improve ESG reporting to compete in the international market, the stakeholders may pressure firms to disclose more information on ESG and policymakers to designalegal framework on ESG that suits firms in Asia.

Keywords: corporate sustainability reporting; environment; social; governance; Asian companies; determinants; economic performance (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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