Comparison of propensity for carbon disclosure between developing and developed countries: A resource constraint perspective

Accounting Research Journal

Volumn 26, Issue 1, 2013, Pages 6-34

  Luo, le ^a   Tang, Qingliang ^a   Lan, Yi Chen ^a  

^a UNIVERSITY OF WESTERN SYDNEY   (Australia)

Author keywords

Carbon; Carbon disclosure; Climate change; Dependency; Developing countries; Financial resources availability; Information disclosure; Large enterprises

Indexed keywords

EID: 84880205411     PISSN: 10309616     EISSN: None     Source Type: Journal    
DOI: 10.1108/ARJ-04-2012-0024     Document Type: Article

References (113)

1. Afsah, S. and Ratunanda, D. (1999), “Environmental performance measurement and reporting in developing countries: the case of Indonesia's program for pollution control evaluation and rating (PROPER)”, in Bennett, M. and Sheffield, P.J. (Eds), Sustainable Measures: Evaluation and Reporting of Environmental and Social Performance, Greenleaf Publishing, London, pp. 185-201.
2. Al-Tuwaijri, S.A., Christensen, T.E. and Hughes, K.E. (2004), “The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach”, Accounting, Organizations and Society, Vol. 29 Nos 5/6, pp. 447-471.
3. Azim, M.I., Ahmed, S. and Islam, M.S. (2009), “Corporate social reporting practice: evidence from listed companies in Bangladesh”, Journal of Asia-Pacific Business, Vol. 10 No. 2, pp. 130-145.
4. Ball, R., Kothari, S. and Robin, A. (2000), “The effect of international institutional factors on properties of accounting earnings”, Journal of Accounting and Economics, Vol. 29 No. 1, pp. 1-52.
5. Bansal, P. (2005), “Evolving sustainably: a longitudinal study of corporate sustainable development”, Strategic Management Journal, Vol. 26 No. 3, pp. 197-218.
6. Baughn, C.C. and McIntosh, J.C. (2007), “Corporate social and environmental responsibility in Asian countries and other geographical regions”, Corporate Social Responsibility and Environmental Management, Vol. 14 No. 4, pp. 189-205.
7. Bebbington, J. and Larrinaga-González, C. (2008), “Carbon trading: accounting and reporting issues”, European Accounting Review, Vol. 17 No. 4, pp. 697-717.
8. Belal, A.R. (2000), “Environmental reporting in developing countries: empirical evidence from Bangladesh”, Eco-Management and Auditing, Vol. 7 No. 3, pp. 114-121.
9. Belal, A.R. (2001), “A study of corporate social disclosures in Bangladesh”, Managerial Auditing Journal, Vol. 16 No. 5, pp. 274-289.
10. Belal, A.R. (2008), Corporate Social Responsibility Reporting in Developing Countries: The Case of Bangladesh, Ashgate, Aldershot.
11. Belal, A.R. and Momin, M. (2009), “Corporate social reporting (CSR) in emerging economies: a review and future direction”, in Tsamenyi, M. and Uddin, S. (Eds), Accounting in Emerging Economies, Research in Accounting in Emerging Economies, Vol. 9, Emerald, Bingley, pp. 119-143.
12. Belal, A.R. and Owen, D.L. (2007), “The views of corporate managers on the current state of, and future prospects for, social reporting in Bangladesh: an engagement-based study”, Accounting, Auditing & Accountability Journal, Vol. 20 No. 3, pp. 472-494.
13. Bewley, K. and Li, Y. (2000), “Disclosure of environmental information by Canadian manufacturing companies: a voluntary disclosure perspective”, Advances in Environmental Accounting and Management, Vol. 1, pp. 201-226.
14. Blyth, W. and House, C. (2007), Incentives, Risk and Decision-Making in Mitigating Climate Change, Chatham House (The Royal Institute of International Affairs), London.
15. Bourgeois, L.J. (1981), “On the measurement of organizational slack”, Academy of Management Review, Vol. 6 No. 1, pp. 29-39.
16. Brammer, S. and Pavelin, S. (2006), “Voluntary environmental disclosures by large UK companies”, Journal of Business Finance & Accounting, Vol. 33 Nos 7/8, pp. 1168-1188.
17. Brammer, S. and Pavelin, S. (2008), “Factors influencing the quality of corporate environmental disclosure”, Business Strategy and the Environment, Vol. 17 No. 2, pp. 120-136.
18. Busch, T. and Hoffmann, V. (2007), “Emerging carbon constraints for corporate risk management”, Ecological Economics, Vol. 62 Nos 3/4, pp. 518-528.
19. CDP Australia 200 & New Zealand 50 Report (2009), Carbon Disclosure Project Report 2009 Australia & New Zealand, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
20. CDP Canada 200 Report (2009), Carbon Disclosure Project Report 2009 Canada 200, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
21. CDP China 100 Report (2009), Carbon Disclosure Project 2009 China 100 Report, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
22. CDP Draft Framework (2010), “Draft framework for responding to the CDP information request”, Carbon Disclousre Project.
23. CDP Germany 200 Report (2009), Carbon Disclosure Project Report 2009 Germany, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
24. CDP Global 500 Report (2009), Carbon Disclosure Project 2009 Global 500 Report, available at: www.cdproject.net/CDPResults/CDP%202009%20Global%20500%20Report.pdf.
25. CDP Global 500 Report (2010), Carbon Disclosure Project 2010 Global 500 Report, Carbon Disclosure Project, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
26. CDP India 200 Report (2009), Carbon Disclosure Project Report 2009 India 200, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
27. CDP Ireland 50 Report (2009), Carbon Disclosure Project 2009 Ireland Report, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
28. CDP Japan 500 Report (2009), Carbon Disclosure Project 2009 Japan 500 Report, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
29. CDP Korea 100 Report (2009), Carbon Disclosure Project 2009 Korea 100 Report, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
30. CDP The Netherlands 50 Report (2009), Carbon Disclosure Project 2009 The Netherlands 50, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
31. CDP South Africa 100 Report (2009), Carbon Disclosure Project 2009 South Africa JSE 100, Carbon Disclosure Project, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
32. CDP Switzerland 100 Report (2009), Carbon Disclosure Projec Switzerland Report 2009, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
33. CDP UK 350 Report (2009), Carbon Disclosure Project 2009 FTSE 350 Report, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
34. CDP US500 Report (2009), Carbon Disclosure Project 2009 S&P 500 Report, available at: www.cdproject.net/en-US/Results/Pages/All-Investor-Reports.aspx.
35. Chapple, L., Clarkson, P.M. and Gold, D.L. (2012), “The cost of carbon: capital market effects of the proposed emission trading scheme”, Abacus (in press).
36. Chinese Association of Listed Companies and Securities Daily (2012), Social Responsibility Reports 2012: A Study of Chinese A-share Listed Company, Association of Listed Companies and Securities Daily, available at: http://money.163.com/12/0817/02/8930BV5A00253B0H.html (accessed 15 October 2012).
37. Clarkson, P.M., Overell, M.B. and Chapple, L. (2011a), “Environmental reporting and its relation to corporate environmental performance”, Abacus, Vol. 47 No. 1, pp. 27-60.
38. Clarkson, P.M., Fang, X., Li, Y. and Richardson, G. (2011b), “The relevance of environmental disclosures for investors and other stakeholder groups: are such disclosures incrementally informative?”, working paper, University of Queensland, Georgia State University, The University of Toronto, Toronto, 19 April.
39. Clarkson, P.M., Li, Y., Richardson, G.D. and Vasvari, F.P. (2008), “Revisiting the relation between environmental performance and environmental disclosure: an empirical analysis”, Accounting, Organizations and Society, Vol. 33 Nos 4/5, pp. 303-327.
40. Clarkson, P.M., Li, Y., Richardson, G.D. and Vasvari, F.P. (2011c), “Does it really pay to be green? Determinants and consequences of proactive environmental strategies”, Journal of Accounting & Public Policy, Vol. 30 No. 2, pp. 122-144.
41. Collier, P.M. (2008), “Stakeholder accountability: a field study of the implementation of a governance improvement plan”, Accounting, Auditing & Accountability Journal, Vol. 21 No. 7, pp. 933-954.
42. Cormier, D. and Magnan, M. (1999), “Corporate environmental disclosure strategies: determinants, costs and benefits”, Journal of Accounting Auditing and Finance, Vol. 14 No. 4, pp. 429-452.
43. Cormier, D. and Magnan, M. (2003), “Environmental reporting management: a continental European perspective”, Journal of Accounting and Public Policy, Vol. 22 No. 1, pp. 43-62.
44. Cormier, D. and Magnan, M. (2007), “The revisited contribution of environmental reporting to investors' valuation of a firm's earnings: an international perspective”, Ecological Economics, Vol. 62 Nos 3/4, pp. 613-626.
45. Cormier, D., Magnan, M. and Van Velthoven, B. (2005), “Environmental disclosure quality in large German companies: economic incentives, public pressures or institutional conditions?”, European Accounting Review, Vol. 14 No. 1, pp. 3-39.
46. Cotter, J. and Najah, M.M. (2012), “Institutional investor influence on global climate change disclosure practices”, Australian Journal of Management, June.
47. Deegan, C. (2002), “Introduction: the legitimising effect of social and environmental disclosures – a theoretical foundation”, Accounting, Auditing & Accountability Journal, Vol. 15 No. 3, pp. 282-311.
48. De Villiers, C. and Van Staden, C. (2006), “Can less environmental disclosure have a legitimising effect? Evidence from Africa”, Accounting, Organizations and Society, Vol. 31 No. 8, pp. 763-781.
49. Dhaliwal, D.S., Li, O.Z., Tsang, A. and Yang, Y.G. (2011), “Voluntary nonfinancial disclosure and the cost of equity capital: the initiation of corporate social responsibility reporting”, The Accounting Review, Vol. 86 No. 1, p. 59.
50. Dobers, P. and Halme, M. (2009), “Corporate social responsibility and developing countries”, Corporate Social Responsibility and Environmental Management, Vol. 16 No. 5, pp. 237-249.
51. Elijido-Ten, E. (2004), “Determinants of environmental disclosures in a developing country: an application of the stakeholder theory”, paper presented at the Fourth Asia Pacific Interdisciplinary Research in Accounting Conference, Singapore, 4-6 July (15 October 2012).
52. Elijido-Ten, E., Kloot, L. and Clarkson, P. (2010), “Extending the application of stakeholder influence strategies to environmental disclosures: an exploratory study from a developing country”, Accounting, Auditing & Accountability Journal, Vol. 23 No. 8, pp. 1032-1059.
53. Francis, J.R. and Khurana, I.K. (2005), “Disclosure incentives and effects on cost of capital around the world”, The Accounting Review, Vol. 80 No. 4, pp. 1125-1162.
54. Frankel, R., McNichols, M. and Wilson, G.P. (1995), “Discretionary disclosure and external financing”, The Accounting Review, Vol. 70 No. 1, pp. 135-150.
55. Freedman, M. and Jaggi, B. (2005), “Global warming, commitment to the Kyoto protocol, and accounting disclosures by the largest global public firms from polluting industries”, The International Journal of Accounting, Vol. 40 No. 3, pp. 215-232.
56. Friedman, A.L. and Miles, S. (2002), “Developing stakeholder theory”, Journal of Management Studies, Vol. 39 No. 1, pp. 1-21.
57. Gao, S.S., Heravi, S. and Xiao, J.Z. (2005), Determinants of Corporate Social and Environmental Reporting in Hong Kong: A Research Note, Elsevier, Amsterdam, pp. 233-242.
58. Gao, Y. (2009), “Corporate social performance in China: evidence from large companies”, Journal of Business Ethics, Vol. 89 No. 1, pp. 23-35.
59. Graham, J.R., Harvey, C.R. and Rajgopal, S. (2005), “The economic implications of corporate financial reporting”, Journal of Accounting and Economics, Vol. 40 Nos 1-3, pp. 3-73.
60. Grant, R.M. (1991), “The resource-based theory of competitive advantage”, California Management Review, Spring.
61. Griffin, P.A., Lont, D.H. and Sun, Y. (2012), “The relevance to investors of greenhouse gas emission disclosures”, working paper, University of California, University of Otago, Dunedin (3 October 2011).
62. Hart, S. (1995), “A natural-resource-based view of the firm”, Academy of Management Review, Vol. 20 No. 4, pp. 986-1014.
63. Hassanien, M.A. (2011), “Atmospheric heavy metals pollution: exposure and prevention policies in mediterranean basin”, in Simeonov, L.I., Kochubovski, M.V. and Simeonova, B.G. (Eds), Environmental Heavy Metal Pollution and Effects on Child Mental Development, Springer, Berlin, pp. 287-307.
64. Hossain, M., Islam, K. and Andrew, J. (2006), “Corporate social and environmental disclosure in developing countries: evidence from Bangladesh”, paper presented at the Asian Pacific Conference on International Accounting Issues Hawaii, available at: http://ro.uow.edu.au/commpapers/179 (accessed 15 October 2012).
65. Husted, B.W. (2005), “Culture and ecology: a cross-national study of the determinants of environmental sustainability”, Management International Review, Vol. 45, pp. 349-371.
66. Imam, S. (1999), “Environmental reporting in Bangladesh”, Social and Environmental Accountability Journal, Vol. 19 No. 2, pp. 12-14.
67. Imam, S. (2000), “Corporate social performance reporting in Bangladesh”, Managerial Auditing Journal, Vol. 15 No. 3, pp. 133-142.
68. Islam, M.A. (2010), “Social and environmental accounting research: major contributions and future directions for developing countries”, Journal of the Asia-Pacific Centre for Environmental Accountability, Vol. 16 No. 2, pp. 27-43.
69. Islam, M.A. and Deegan, C. (2008), “Motivations for an organisation within a developing country to report social responsibility information: evidence from Bangladesh”, Accounting, Auditing & Accountability Journal, Vol. 21 No. 6, pp. 850-874.
70. Jamali, D. and Mirshak, R. (2007), “Corporate social responsibility (CSR): theory and practice in a developing country context”, Journal of Business Ethics, Vol. 72 No. 3, pp. 243-262.
71. Jensen, M.C. (2001), “Value maximization, stakeholder theory, and the corporate objective function”, Journal of Applied Corporate Finance, Vol. 14 No. 3, pp. 8-21.
72. King, A. and Lenox, M. (2001), “Does it really pay to be green? An empirical study of firm environmental and financial performance”, Journal of Industrial Ecology, Vol. 5 No. 1, pp. 105-116.
73. King, R. (2009), Investors Demand Carbon-Risk Disclosure, available at: www.businessweek.com/technology/content/jun2009/tc2009061_144414_page_2.htm (accessed 23 March 2011).
74. Kolk, A. and Pinkse, J. (2008), “Business and climate change: emergent institutions in global governance”, Corporate Governance, Vol. 8 No. 4, pp. 419-429.
75. Kolk, A., Levy, D. and Pinkse, J. (2008), “Corporate responses in an emerging climate regime: the institutionalization and commensuration of carbon disclosure”, European Accounting Review, Vol. 17 No. 4, pp. 719-745.
76. Kuasirikun, N. and Sherer, M. (2004), “Corporate social accounting disclosure in Thailand”, Accounting, Auditing & Accountability Journal, Vol. 17 No. 4, pp. 629-660.
77. Lang, M. and Lundholm, R. (1993), “Cross-sectional determinants of analyst ratings of corporate disclosures”, Journal of Accounting Research, Vol. 31 No. 2, pp. 246-271.
78. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. (1998), “Law and finance”, Journal of Political Economy, Vol. 106 No. 6, pp. 1113-1155.
79. Leighton Holdings CDP Report (2010), Investor CDP 2010 Information Request-Leighton Holdings Ltd, The Carbon Disclosure Project, available at: www.cdproject.net/en-US/Pages/HomePage.aspx (accessed 3 August 2012).
80. Lend Lease CDP Report (2010), Investor CDP 2010 Information Request-Lend Lease Corporation Ltd, The Carbon Disclosure Project, available at: www.cdproject.net/en-US/Pages/HomePage.aspx (accessed 3 August 2012).
81. Li, Y. and McConomy, B. (1999), “An empirical examination of factors affecting the timing of environmental accounting standard adoption and the impact on corporate valuation”, Journal of Accounting Auditing and Finance, Vol. 14, pp. 279-313.
82. Li, Y., Richardson, G.D. and Thornton, D.B. (1997), “Corporate disclosure of environmental liability information: theory and evidence”, Contemporary Accounting Research, Vol. 14 No. 3, pp. 435-474.
83. Liu, X. and Anbumozhi, V. (2009), “Determinant factors of corporate environmental information disclosure: an empirical study of Chinese listed companies”, Journal of Cleaner Production, Vol. 17 No. 6, pp. 593-600.
84. Luo, L., Lan, Y.-C. and Tang, Q. (2012), “Corporate incentives to disclose carbon information: evidence from the CDP Global 500 Report”, Journal of International Financial Management & Accounting, Vol. 23 No. 2, pp. 93-120.
85. Lynn, M. (1992), “A note on corporate social disclosure in Hong Kong”, The British Accounting Review, Vol. 24 No. 2, pp. 105-110.
86. Matsumura, E.M., Prakash, R. and Vera-Munoz, S.C. (2011), “Voluntary disclosures and the firm-value effects of carbon emissions”, working paper, University of Wisconsin-Madison, Georgetown University, University of Notre Dame, Notre Dame, IN, 31 May.
87. Mitchell, R.K., Agle, B.R. and Wood, D.J. (1997), “Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts”, The Academy of Management Review, Vol. 22 No. 4, pp. 853-886.
88. Mounteer, T. and Ranchod, S. (2010), SEC Issues Guidance Regarding Disclosure of Climate Change Risks, available at: www.paulhastings.com/assets/publications/1506.pdf (accessed 13 April 2011).
89. Munich Re (2005), Topics Geo, Annual Review: Natural Catastrophes 2004, Munich Reinsurance Group, Munich.
90. Newson, M. and Deegan, C. (2002), “Global expectations and their association with corporate social disclosure practices in Australia, Singapore, and South Korea”, The International Journal of Accounting, Vol. 37 No. 2, pp. 183-213.
91. O'Dwyer, B. (2005), “Stakeholder democracy: challenges and contributions from social accounting”, Business Ethics: A European Review, Vol. 14 No. 1, pp. 28-41.
92. OECD (2010), Transition to a Low-Carbon Economy: Public Goals and Corporate Practices, OECD, Paris, available at: http://dx.doi.org/10.1787/9789264090231-en (accessed 20 August 2011).
93. O'Rourke, D. (2004), “Opportunities and obstacles for corporate social responsibility reporting in developing countries”, The World Bank Group œ Corporate Social Responsibility Practice, March, Vol. 27, pp. 39-40.
94. O'Sullivan, N. and O'Dwyer, B. (2009), “Stakeholder perspectives on a financial sector legitimation process: the case of NGOs and the equator principles”, Accounting, Auditing & Accountability Journal, Vol. 22 No. 4, pp. 553-587.
95. Patten, D. (2002a), “Media exposure, public policy pressure, and environmental disclosure: an examination of the impact of tri data availability”, Accounting Forum, Vol. 26 No. 2, pp. 152-171.
96. Patten, D. (2002b), “The relation between environmental performance and environmental disclosure: a research note”, Accounting, Organizations and Society, Vol. 27 No. 8, pp. 763-773.
97. Perry, M. and Sheng, T.T. (1999), “An overview of trends related to environmental reporting in Singapore”, Environmental Management and Health, Vol. 10 No. 5, pp. 310-320.
98. Peters, G. and Romi, A. (2009), “Carbon disclosure incentives in a global setting: an empirical investigation”, working paper, University of Arkansas, Fayetteville, AR, 4 September.
99. Pinkse, J. and Kolk, A. (2009), International Business and Global Climate Change, Taylor & Francis, Basingstoke.
100. Porter, M. and van der Linde, C. (1995), “Green and competitive: ending the stalemate”, Harvard Business Review, September-October, pp. 119-134.
101. Prado-Lorenzo, J., Rodriguez-Dominguez, L., Gallego-Alvarez, I. and Garcia-Sanchez, I. (2009), “Factors influencing the disclosure of greenhouse gas emissions in companies world-wide”, Management Decision, Vol. 47 No. 7, pp. 1133-1157.
102. Ramasamy, B. and Ting, H.W. (2004), “A comparative analysis of corporate social responsibility awareness: Malaysian and Singaporean firms”, Journal of Corporate Citizenship, Vol. 13, pp. 109-123.
103. Reid, E. and Toffel, M. (2009), “Responding to public and private politics: corporate disclosure of climate change strategies”, Strategic Management Journal, Vol. 30 No. 11, pp. 1157-1178.
104. Roberts, R.W. (1992), “Determinants of corporate social responsibility disclosure: an application of stakeholder theory”, Accounting, Organizations and Society, Vol. 17 No. 6, pp. 595-612.
105. Stanny, E. (2010), “Voluntary disclosures by US firms to the Carbon Disclosure Project”, working paper, School of Business and Economics, Sonoma State University, Rohnert Park, CA.
106. Stanny, E. and Ely, K. (2008), “Corporate environmental disclosures about the effects of climate change”, Corporate Social Responsibility and Environmental Management, Vol. 15 No. 6, pp. 338-348.
107. Stern, N. (2006), The Economics of Climate Change: The Stern Review, Cambridge University Press, Cambridge.
108. Ullmann, A.A. (1985), “Data in search of a theory: a critical examination of the relationships among social performance, social disclosure, and economic performance of US firms”, The Academy of Management Review, Vol. 10 No. 3, pp. 540-557.
109. Verrecchia, R.E. (2001), “Essays on disclosure 1”, Journal of Accounting and Economics, Vol. 32 Nos 1-3, pp. 97-180.
110. Waldman, D. A., de Luque, M. S., Washburn, N., House, R. J., Adetoun, B., Barrasa, A., Bobina, M., Bodur, M., Chen, Y.-J., Debbarma, S., Dorfman, P., Dzuvichu, R. R., Evcimen, I., Fu, P., Grachev, M., Duarte, R. G., Gupta, V., Hartog, D. N. D., de Hoogh, A. H. B., Jon, H., Jone, K.-Y., Kabasakal, H., Konrad, E., Koopman, P. L., Lang, R., Lin, C.-C., Liu, J., Martinez, B., Munley, A. E., Papalexandris, N., Peng, T. K., Prieto, L., Quigley, N., Rajasekar, J., Rodríguez, F. G., Steyrer, J., Tanure, B., Thierry, H., Thomas, F. V. M., van den Berg, P. T. and Wilderom, C. P. M. (2006), “Cultural and leadership predictors of corporate social responsibility values of top management: a GLOBE study of 15 countries”, Journal of International Business Studies, Vol. 37 No. 6, pp. 823-837.
111. Welford, R. (2005), “Corporate social responsibility in Europe, North America and Asia”, Journal of Corporate Citizenship, Vol. 17 No. 1, pp. 33-52.
112. Wikipedia (2012), “Developing country”, available at: http://en.wikipedia.org/wiki/Developing_country (accessed 10 January 2012).
113. Wiley, J. (1997), “Sustainable competitive advantage: combining institutional and resource-based views”, Strategic Management Journal, Vol. 18 No. 9, pp. 697-713.