Sustainability disclosure, dominant owners and earnings informativeness

Carolina Bona-Sánchez, Jerónimo Pérez-Alemán and Domingo J. Santana-Martin

Research in International Business and Finance, 2017, vol. 39, issue PA, 625-639

Abstract: Focusing on an environment where ownership concentration is prevalent and where sustainability disclosure is not a new phenomenon, we investigate the effect that communication via social responsibility reporting has on earnings informativeness. We further address the moderating role of the dominant owner’s voting-cash flow wedge in the relation between sustainability disclosure and earnings informativeness.We show that communication via social responsibility reporting provides additional information to market participants to assess earnings informativeness. Furthermore, we show that the positive relationship between sustainability reporting and earnings informativeness intensifies as the dominant owner’s voting-cash flow wedge increases. Our results are consistent with sustainability disclosure reducing investors’ and other stakeholders’ uncertainty, thereby helping them better interpret financial information.

Keywords: Corporate social responsibility; Earnings informativeness; Dominant owners (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S027553191630160X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:39:y:2017:i:pa:p:625-639

DOI: 10.1016/j.ribaf.2016.07.020

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().