The Impact of Environmental and Social Disclosure on Earnings Persistence

Thai Van Ha, Amena Sibghatullah, Sang Soo Chae and Talla M. Aldeehani
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Thai Van Ha: National Academy of Education Management, Phan Dinh Giot, Thanh Xuan, Ha Noi, Vietnam,
Amena Sibghatullah: College of Management Sciences PAF-KIET University, Pakistan,
Sang Soo Chae: Department of Economics and Statistics, Korea University, South Korea,
Talla M. Aldeehani: College of business administration, Kuwait University, Kuwait

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 6, 690-696

Abstract: This paper investigates the relationship between environmental and social disclosure with earnings persistence as a proxy of earnings quality. This research is based on the secondary data obtained from the final reports of the listed firms of Malaysia. The empirical analysis applied on 136 listed firms of Bursa Malaysia throughout 2011 to 2018 with the observation of 1088. The measure of earnings persistence is derived from the panel data based on the regression of the time series model. The results of our study indicate that environmental and social disclosures are positively correlated with earnings persistence. This means that the more the level of commitment a firm shows with environmental and social responsibility, the more persistent earnings it carries. Moreover, earnings persistence is the proxy of earnings quality, and it is desirable by every investor.

Keywords: Environmental Disclosure; Social Disclosure; Earnings (search for similar items in EconPapers)
JEL-codes: O13 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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