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The Impact of Corporate Environmental Disclosures and Audit Committees on Environmental Reputation

34 Pages Posted: 13 Jul 2015  

Habiba Al-Shaer

Newcastle University Business School

A. Salama

Newcastle University (UK) - Business School

Steve Toms

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

Date Written: July 12, 2015

Abstract

We examine the impact of the volume and quality of environmental disclosures in corporate annual reports on the creation and sustenance of firms’ reputation for environmental responsibility, and the extent to which these effects are enhanced by the quality of audit committees. Using a sample of UK FTSE350 companies from 2007-2011, we find evidence that firms enhance reputations by the quality of their environmental disclosures and by virtue of the quality of audit committees. Higher disclosure volume alone does not lead to increased reputation. Audit committees that comply with Smith (2003) recommendations, complement higher quality, difficult to replicate disclosures, in promoting reputation.

Keywords: Environmental Disclosure, Audit Committees, Environmental Reputation, UK FTSE350

Suggested Citation

Al-Shaer, Habiba and Salama, A. and Toms, Steve, The Impact of Corporate Environmental Disclosures and Audit Committees on Environmental Reputation (July 12, 2015). Available at SSRN: https://ssrn.com/abstract=2629763 or http://dx.doi.org/10.2139/ssrn.2629763

Habiba Al-Shaer

Newcastle University Business School ( email )

Department of Accounting and Finance
5 Barrack Road
Newcastle, NE1 4SE
United Kingdom

Aly Salama

Newcastle University (UK) - Business School ( email )

Newcastle upon Tyne, NE1 4SE
United Kingdom

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

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