Firm Resources, Quality Signals and The Determinants of Corporate Environmental Reputation: Some UK Evidence

26 Pages Posted: 24 Nov 2010

See all articles by Steve Toms

Steve Toms

University of Leeds - Leeds University Business School (LUBS); University of Leeds - Division of Accounting and Finance

Date Written: November 23, 2010

Abstract

Using the example of the creation of corporate environmental reputation, the article offers a theoretical extension of the resource-based view of the ®rm to include quality signaling via the channel of accounting disclosure. The proposed framework is then tested via an empirical survey into the relationship between environmental disclosure and environmental reputation. The results suggest that implementation, monitoring and disclosure of environmental policies and their disclosure in annual reports contribute significantly to the creation of environmental reputation. Diverse institutional share ownership and low systematic risk are also associated with positive environmental reputation. Prior financial performance has no impact and there is no evidence that environmental reputation is created by a financial halo effect or by the availability of slack financial resources.

Keywords: resource based view, accounting disclosure, quality signalling, corporate social responsibility

JEL Classification: D18, M41

Suggested Citation

Toms, Steve, Firm Resources, Quality Signals and The Determinants of Corporate Environmental Reputation: Some UK Evidence (November 23, 2010). Available at SSRN: https://ssrn.com/abstract=1714030 or http://dx.doi.org/10.2139/ssrn.1714030

Steve Toms (Contact Author)

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
215
Abstract Views
961
rank
139,971
PlumX Metrics