arbiter
JournalsPricingAccount

The Role of Environmental Disclosures in Enhancing Firm Value: Evidence from Listed Manufacturing Firms

Nolwando Mgilane et al.

Issues in Social and Environmental Accounting: An International Journal2023https://doi.org/10.7176/isea/s2-03article
ABDC C
Weight
0.26

What the paper says

The traditional approach to financial performance reporting has experienced a significant shift as stakeholders increasingly demand greater transparency regarding firms' environmental and social impact. This has elevated the importance of environmental reporting due to its potential influence on firms' financial strength. This study investigates the relationship between environmental reporting and the value of manufacturing firms listed on the Johannesburg Stock Exchange (JSE) in South Africa. The study conducted a content analysis on 250 annual integrated reports from 50 manufacturing firms listed on the JSE between 2016 and 2020 and utilized a multiple regression analysis. The findings revealed a negative relationship between environmental reporting and firm value, suggesting that adopting environmental reporting may involve additional financial resources, which are perceived as an outflow of funds in an economic context. Consequently, this study recommends that manufacturing companies analyse their stakeholders' characteristics and information needs to present relevant environmental reporting in their annual integrated reports. By doing so, companies can enhance their legitimacy with stakeholders, maximise shareholder value, and ultimately increase firm value. This research contributes to the existing literature on environmental, social, and financial reporting, particularly in South Africa, by focusing specifically on manufacturing firms listed on the JSE. Keywords : Environmental Reporting, Social Reporting, Financial Performance, Firm Value.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.7176/isea/s2-03

Or copy a formatted citation

@article{nolwando2023,
  title        = {{The Role of Environmental Disclosures in Enhancing Firm Value: Evidence from Listed Manufacturing Firms}},
  author       = {Nolwando Mgilane et al.},
  journal      = {Issues in Social and Environmental Accounting: An International Journal},
  year         = {2023},
  doi          = {https://doi.org/https://doi.org/10.7176/isea/s2-03},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The Role of Environmental Disclosures in Enhancing Firm Value: Evidence from Listed Manufacturing Firms

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.26

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.20 × 0.15 = 0.03
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.