The Drivers of Corporate Water Disclosure in Enhancing Information Transparency

Hui-Cheng Yu, Lopin Kuo and Beiling Ma
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Hui-Cheng Yu: School of Finance and Accounting, Fuzhou University of International Studies and Trade, Fuzhou 350202, China
Lopin Kuo: Department of Accounting, Tamkang University, New Taipei City 25137, Taiwan
Beiling Ma: School of Tourism Management, Hunan University of Technology and Business, Changsha 410205, China

Sustainability, 2020, vol. 12, issue 1, 1-14

Abstract: This paper explores drivers of corporate water disclosure (CWD) from an aspect of accountability. Based on legitimacy theory and stakeholder theory, we propose six potential drivers of CWD. First, this paper uses an independent sample t -test to analyze differences in CWD among US firms. Later, potential drivers on CWD were identified using ordinal logit regression. These hypotheses posit that debt ratio, blockholders’ ownership ratio, inclusion in a capital market index (i.e., S&P500), and the status of belonging to a water-sensitive industry (WSensi) all have a positive effect on CWD. However, the relations of firm size and profitability on CWD are insignificant. This suggests that the supervision of blockholders and creditors can effectively improve the transparency of CWD.

Keywords: accountability; legitimacy theory; stakeholder theory; water-sensitive industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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