Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Determinants of social and economic reportings

Determinants of social and economic reportings PurposeThis paper aims to provide new insights on the determinants of social and economic sustainability reportings of multinational enterprises (MNEs) in three Anglo-Saxon countries, mainly Australia, the UK and South Africa, from the perspective of corporate governance, stakeholder and corporate legitimacy.Design/methodology/approachThis paper examines stand-alone sustainability reports of 67 large MNEs from three countries available in the Global Reporting Initiative (GRI) website for the period of 2008-2009. It undertakes two distinct methodological approaches: first, principal component analysis (PCA) of GRI guidelines (G3) on social and economic indicators to identify the most appropriate dependent variables, and second, hierarchical multiple regression for the hypotheses testing and finding determinants of respective dependent variables on social and economic reportings.FindingsThe results from the PCA of GRI guidelines (G3) provide an alternative way of categorizing the social and economic indicators when compared to the categories given by the GRI. Again, the results from hierarchical multiple regression indicate the industry sector as the dominant determinant of social and economic reportings. In particular, the positive, significant association of board independence, assurance and employee performance variables with economic reporting confirms the significant roles of corporate governance, stakeholders and corporate legitimacy in determining economic reporting. The findings also suggest the complementary nature of relevant theories in corporate voluntary disclosures relating to economic performance. However, social reporting shows no such relations, which rather relies more on firm-specific/financial variables of MNEs including firm size and age.Research limitations/implicationsThe sample of this study is limited to two-year periods and large MNEs available in the GRI website with stand-alone sustainability reports only.Practical implicationsThe PCA focuses on most relevant and specific categories of social and economic reportings as opposed to GRI generic categories. The PCA findings also suggest the GRI to contemplate reducing the social and economic indicators for future guidelines. The hierarchical multiple regression results highlight specific areas of emphasis that MNEs should focus on when reporting social and economic information.Originality/valueThis study adds value to the existing literature on GRI-based social and economic reportings as well as the complementary nature of corporate governance, stakeholders and corporate legitimacy perspectives. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Accounting and Information Management Emerald Publishing

Loading next page...
 
/lp/emerald-publishing/determinants-of-social-and-economic-reportings-mcIG9aaua7
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1834-7649
DOI
10.1108/IJAIM-01-2016-0003
Publisher site
See Article on Publisher Site

Abstract

PurposeThis paper aims to provide new insights on the determinants of social and economic sustainability reportings of multinational enterprises (MNEs) in three Anglo-Saxon countries, mainly Australia, the UK and South Africa, from the perspective of corporate governance, stakeholder and corporate legitimacy.Design/methodology/approachThis paper examines stand-alone sustainability reports of 67 large MNEs from three countries available in the Global Reporting Initiative (GRI) website for the period of 2008-2009. It undertakes two distinct methodological approaches: first, principal component analysis (PCA) of GRI guidelines (G3) on social and economic indicators to identify the most appropriate dependent variables, and second, hierarchical multiple regression for the hypotheses testing and finding determinants of respective dependent variables on social and economic reportings.FindingsThe results from the PCA of GRI guidelines (G3) provide an alternative way of categorizing the social and economic indicators when compared to the categories given by the GRI. Again, the results from hierarchical multiple regression indicate the industry sector as the dominant determinant of social and economic reportings. In particular, the positive, significant association of board independence, assurance and employee performance variables with economic reporting confirms the significant roles of corporate governance, stakeholders and corporate legitimacy in determining economic reporting. The findings also suggest the complementary nature of relevant theories in corporate voluntary disclosures relating to economic performance. However, social reporting shows no such relations, which rather relies more on firm-specific/financial variables of MNEs including firm size and age.Research limitations/implicationsThe sample of this study is limited to two-year periods and large MNEs available in the GRI website with stand-alone sustainability reports only.Practical implicationsThe PCA focuses on most relevant and specific categories of social and economic reportings as opposed to GRI generic categories. The PCA findings also suggest the GRI to contemplate reducing the social and economic indicators for future guidelines. The hierarchical multiple regression results highlight specific areas of emphasis that MNEs should focus on when reporting social and economic information.Originality/valueThis study adds value to the existing literature on GRI-based social and economic reportings as well as the complementary nature of corporate governance, stakeholders and corporate legitimacy perspectives.

Journal

International Journal of Accounting and Information ManagementEmerald Publishing

Published: May 2, 2017

References