Environmental disclosure effects on returns and market value

Angela Patrícia Bovolini Pedron (), Clea Beatriz Macagnan (), Davi Souza Simon () and Daniel Francisco Vancin ()
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Angela Patrícia Bovolini Pedron: Universidade do Vale do Rio dos Sinos
Clea Beatriz Macagnan: Universidade do Vale do Rio dos Sinos
Davi Souza Simon: Universidade do Vale do Rio dos Sinos
Daniel Francisco Vancin: Universidade do Vale do Rio dos Sinos

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2021, vol. 23, issue 3, No 81, 4614-4633

Abstract: Abstract This paper analyzes whether the environmental information disclosure level practiced by firms listed on the Brazilian Stock Market affects their profitability and value. The results show some disclosure by most of the sample firms, and significant differences in characteristics between firms that disclose and those that do not disclose environmental information. The paper contributes to the extant social responsibility and environmental disclosure literature by analyzing annual reports and standardized financial statements as a source of evidence, but especially for analyzing the relationship between the level of disclosure of environmental information and its lack of reflection on the profitability and value of firms. Results suggest the importance of both legitimacy theory and proprietary costs theory, each explaining part of the decision process regarding the disclosure of environmental information. Our results also demonstrate that environmental disclosure positively affects the value of publicly traded Brazilian companies.

Keywords: Environmental information; Disclosure; Returns (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10668-020-00790-2

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