Sustainability Disclosures and Their Influence on Cost of Capital: A Comprehensive Bibliometric Study

Kiran Fatima, Habiba Azam, Fiaz Sulehri, Syeda Ambreen Fatima Bukhari, Hafiz Khalique Ur Rehman Virk, Yunjiang Geng, Marc Audi and Muhammad Saleem Ashraf
Additional contact information
Kiran Fatima: Department of Commerce, University of Punjab, Gujranwala Campus, Pakistan
Habiba Azam: Head of Department, Riphah International College, Gujranwala, Pakistan
Syeda Ambreen Fatima Bukhari: CEO RAH International & Lecturer, Lahore School of Accountancy and Finance, The University of Lahore, Pakistan
Hafiz Khalique Ur Rehman Virk: Lecturer, Lahore School of Accountancy and Finance, The University of Lahore, Pakistan
Yunjiang Geng: Professor, School of Accounting, Dongbei University of Finance and Economics, Dalian, Liaoning Province, China
Muhammad Saleem Ashraf: Associate Professor, Minhaj University Lahore, Lahore, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 2, 799-810

Abstract: Since the beginning of the twenty-first century, corporate social responsibility (CSR) has emerged as a global phenomenon in the business sector, capturing the attention of all stakeholders. Both early-stage and established firms often engage in high levels of voluntary disclosure, thereby reducing their cost of capital. This study synthesizes existing literature related to the impact of CSR on the cost of capital, focusing on sustainability and environmental disclosure. Utilizing the Scopus database, we conducted a bibliometric analysis through VOSviewer, analyzing 76 research articles from reputable academic journals published between 2002 and 2022. Our analysis identified three primary clusters: (1) the red cluster, titled "CSR and ESG disclosure and its impact on cost of capital" with 43 articles examining corporate social performance strategies, environmental risks, and green support; (2) the green cluster, titled "CSR activities and environmental or voluntary disclosure" with 21 articles focusing on corporate social investment, greenhouse gas emissions, voluntary disclosure, and their impact on cost of capital; and (3) the blue cluster, titled "sustainability disclosure or toxic release" with 12 articles centered on corporate social decoupling and toxic release. Our findings provide valuable insights for enhancing a firm's environmental and economic performance and offer guidance for decision-makers, lenders, investors, shareholders, and policymakers on reducing a firm's cost of capital through sustainability policies and strategies. Additionally, we highlight unexplored dimensions for future research, including forecasting firm investments using decoupling techniques, exploring the mediating role of CSR on the cost of capital, and examining the relationship between carbon intensity, greenhouse gases, and toxic release.

Keywords: corporate social responsibility; sustainability; cost of capital (search for similar items in EconPapers)
Date: 2024
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Working Paper: Sustainability Disclosures and Their Influence on Cost of Capital: A Comprehensive Bibliometric Study (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:13:y:2024:i:2:p:799-810

DOI: 10.61506/01.00395

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