Abstract

http://ssrn.com/abstract=1744114
 
 

Citations



 


 



Voluntary Environmental Disclosure Quality and Firm Value: Further Evidence


Marlene Plumlee


University of Utah - School of Accounting

Darrell Brown


Portland State University - School of Business Administration; Indiana University - Kelley School of Business - Management & Entrepreneurship

Rachel M. Hayes


University of Utah - David Eccles School of Business

Scott Marshall


Portland State University - School of Business Administration

December 31, 2010


Abstract:     
This study examines the relationship between the quality of a firm’s voluntary environmental disclosures and firm value by exploring the relationship between the components of firm value (expected future cash flows and cost of equity) and voluntary environmental disclosure quality. We measure voluntary environmental disclosure quality using a disclosure index consistent with the Global Reporting Initiative disclosure framework for a sample of US firms across five industries. In addition to overall disclosure quality, we consider the type (i.e., hard/soft) and the nature (i.e., positive/neutral/negative) of the disclosure in our analysis. We also include controls for both positive and negative environmental performance. Based on this analysis, we document (1) a positive association between some aspects of voluntary environmental disclosure quality and future expected cash flows, and (2) both a negative and positive association between some aspects of voluntary environmental disclosure quality and a firm’s cost of equity capital. Our findings are consistent with increased voluntary environmental disclosure quality being associated with firm value through both the expected cash flow and cost of equity capital components. The results also highlight the benefit of parsing broader measures (e.g. voluntary disclosure quality) when examining complex relationships.

working papers series


Not Available For Download

Date posted: January 21, 2011  

Suggested Citation

Plumlee, Marlene and Brown, Darrell and Hayes, Rachel M. and Marshall, Scott, Voluntary Environmental Disclosure Quality and Firm Value: Further Evidence (December 31, 2010). Available at SSRN: http://ssrn.com/abstract=1744114

Contact Information

Marlene A. Plumlee (Contact Author)
University of Utah - School of Accounting ( email )
1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States
Darrell Brown
Portland State University - School of Business Administration ( email )
Portland, OR 97207-0751
United States
503-725-3096 (Phone)
503-725-5850 (Fax)
Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )
Bloomington, IN 47405
United States

Rachel M. Hayes
University of Utah - David Eccles School of Business ( email )
1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States
Scott Marshall
Portland State University - School of Business Administration ( email )
Portland, OR 97207-0751
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,416

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.250 seconds