A Study of the Determinants of Corporate Environmental Disclosure in MENA Emerging Markets
DOI:
https://doi.org/10.6000/1929-7092.2013.02.5Keywords:
Environmental disclosure, determinants, Arab Middle Eastern and North African (MENA), web sitesAbstract
Abstract: The purpose of this study is to investigate environmental disclosure determinants in Arab Middle Eastern and North African (MENA) companies. In this regard, we investigate factors which are specific to this context. We include the ‘business culture' variable inherited from former colonisers and main economic partners and the ‘state ownership' and ‘family ownership' variables. In addition, we consider “Country's Internet Penetration†as a new explanatory variable which is expected to influence environmental disclosure on the web site. Using a sample of 153 web sites of listed companies, findings show a negative and significant relationship between environmental disclosure and ‘family ownership'. Moreover, consistent with prior work, the level of environmental disclosure is substantially affected by company size and performance.References
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Abu-Baker, N and K. Naser. 2000. “Empirical Evidence on Corporate Social Disclosure (CSD) Practices in Jordan”. International Journal of Commerce and Management 10: 18.
http://dx.doi.org/10.1108/eb047406
Adams, C. A and N. Kuasirikum. 2000. “A Comparative Analysis of Corporate Reporting on Ethical Issues by UK and German Chemical and Pharmaceutical Companies”. The European Accounting Review 9(1): 53-79.
http://dx.doi.org/10.1080/096381800407941
Adams, C and G. Frost. 2004. “The Development of Corporate Web-Sites and Implications for Ethical, Social and Environmental Reporting Through These Media”. The Institute of Chartered Accounting of Scotland, Edinburg.
Al-Htaybat, K. 2011. ”Corporate Online Reporting in 2010 : A Case Study in Jordan”. Journal of Financial Reporting and Accounting 9(1): 5-26.
http://dx.doi.org/10.1108/19852511111139778
Al-Arussi, A. S., M. H Selamet and M. Hanefah. 2009. “Determinants of Financial and Environmental Disclosures Through the Internet by Malaysian Companies”. Asian Review of Accounting 17(1): 59-76.
http://dx.doi.org/10.1108/13217340910956513
Al-Moataz, E and F. Lakhal. 2008. “Corporate Governance Disclosures and Corporate Governance Mechanisms: The Case of Saudi Listed Companies”. working paper.
Aly, D., J. Simon and K. Hussainey. 2009. “Determinants of Corporate Internet Reporting: Evidence From Egypt”. Managerial Auditing Journal 25(2): 182-202.
http://dx.doi.org/10.1108/02686901011008972
Anderson, A., N. Elias and D. Zéghal. 1998. “Environmental Management and Reporting”. Ed.CGA. Canada.
Andrew, J. 2003. “Corporate Governance, the Environment, and the Internet”. Electronic Green Journal 19, http://egj.lib.uidaho. edu/egj19/andrew1.html.
Barth, M. E., M. McNichols and P. Wilson. 1997. “Factors Influencing Firm’s Disclosures About Environmental Liabilities”. Review in Accounting Studies 2: 35-65.
http://dx.doi.org/10.1023/A:1018321610509
Bartolomeo, M. 2000. “Environmental Management Accounting in Europe: Current Practice and Future Potential”. European Accounting Review 9(1): 31-53.
http://dx.doi.org/10.1080/096381800407932
Ben Othman, H. and D. Zeghal. 2010. “Investigating Transparency and Disclosure Determinants at Firm-level in MENA Emerging Markets”. International Journal Accounting, Auditing and Performance Evaluation 6(4): 368-36.
http://dx.doi.org/10.1504/IJAAPE.2010.036152
Ben Naceur, S., N. Boubakri and S. Ghazouani. 2009. “Privatization and Financial Market Development in Emerging Countries: A Comparative Study”. Working paper.
Brammer, J. S and P. Stephen. 2006. “Corporate Reputation and Social Performance: The Importance of Fit”. Journal of Management Studies, Blackwell Publishing 43(3): 435-455.
http://dx.doi.org/10.1111/j.1467-6486.2006.00597.x
Briston, R. J. 1990. “Accounting in Developing Countries: Indonesia and the Solomon Islands as Case Studies for Regional Corporation”. Research in Third World Accounting 1: 195-216.
Colman, R. 2004. “Satisfied Stakeholders”. CMA Management 78(1): 5-22.
Colman, R. 2005. “Corporate Social Responsibility: Where Do We Really Stand”. CMA Management 78(9): 28-33.
Cormier, D. and M. Magnan. 2003. “Environmental Reporting Management: A European Perspective”. Journal of Accounting and Public Policy 22(1): 43-62.
http://dx.doi.org/10.1016/S0278-4254(02)00085-6
Cowen, S. S., L. B. Ferreri and L. D. Parker. 1987. “The Impact of Corporate Characteristics on Social Responsibility Disclosure: A typology and Frequency-Based Analysis”. Accounting, Organizations and society: 111-122.
http://dx.doi.org/10.1016/0361-3682(87)90001-8
Craven, B. N. and C. L. Marston. 1999. “Financial Reporting on the Internet by leading UK Companies”. The European Accounting Review 8(2): 321-333.
http://dx.doi.org/10.1080/096381899336069
Debreceny, R., G. L. Gray and A. Rahman. 2002. “The Determinants of Internet Financial Reporting”. Journal of Accounting and Public Policy 21(4-5): 371-394.
http://dx.doi.org/10.1016/S0278-4254(02)00067-4
Dutta, P. and S. Bose. 2008. “Corporate Environmental Reporting on the Internet in Bangladesh: An Exploratory Study”. International Review of Business Research 4(3): 138-150.
Gamble, G., K. Hsu., C. Jackson and C. Tollerson. 1996. “Environmental Disclosures in Annual Reports: An International Perspective”. International Journal of Accounting 31(3): 293-331.
http://dx.doi.org/10.1016/S0020-7063(96)90022-9
Haniffa, R. M. and T. Cooke. 2005. “The Impact of Culture and Governance on Corporate Social Reporting”. Journal of Accounting and Public Policy 24: 391-430.
http://dx.doi.org/10.1016/j.jaccpubpol.2005.06.001
Halme, M. and M. Huse. 1997. “The Influence of Corporate Governance, Industry and Country Factors on Environmental Reporting”. Scandinavian Journal of Management 13: 137-157.
http://dx.doi.org/10.1016/S0956-5221(97)00002-X
Hopkins, M. 2004. “Corporate Social Responsibility”. An Issues Paper, Policy Integration Department World Commission on the Social Dimension of Globalisation International Labour Office.
Leuz, C. and R. Verrecchia. 2000. “The Economic Consequences of Increased Disclosure”. Journal of Accounting Research 38(supplement 2000): 91-124.
http://dx.doi.org/10.2307/2672910
Lodhia, S. 2006. “The World Wide Web and Its Potential for Corporate Environmental Communication: A Study into Present Practices in the Australian Mineral Industry”. The International Journal of Digital Accounting Research 6(11): 65-94.
Lopez-Claros, A. and K. Schwab. 2005. “The Arab world Competitiveness Report”. Hampshire, UK: Palgrave Macmillan, World Economic Forum.
Lymer, A. M. 1997.” The Use of the Internet for Corporate Reporting- A Discussion of the Issues and Survey of Current Usage in the UK”. Journal of Financial Information systems.
Monova, J. M. and F. Lena. 2000. “Environmental Disclosures in the Annual Reports of Large Size Companies in Spain”. European Accounting Review 9(1): 7-29.
http://dx.doi.org/10.1080/096381800407923
Mitiva, E. 2007. “Corporate Governance in the Middle East and North Africa”. The Executive. (November- December):38-40, available at http://www.eiod.org.
Naser, K., A. Al-Hussaini., D. Al-Kwari and R. Nuseibeh. 2006. “Determinants of Corporate Social Disclosure in Developing Countries: The Case of Qatar”. Advances in International Accounting 19: 1-23.
http://dx.doi.org/10.1016/S0897-3660(06)19001-7
Neu, D., H. Warsame and K. Pedwell. 1998. “Managing Public Impressions: Environmental Disclosures in Annual Reports”. Accounting, Organizations and Society 23(April): 265-283.
http://dx.doi.org/10.1016/S0361-3682(97)00008-1
Omran, M., A. Bolbol and A. Fatheldin. 2008. “Corporate Governance and Firm Performance in Arab Equity Markets: Does Ownership Concentration Matter?”. International Review of Law and Economics 28: 32-45.
http://dx.doi.org/10.1016/j.irle.2007.12.001
Oyelere, P., F. Laswad and R. Fisher. 2003. “Determinants of Internet Financial Reporting by New Zealand Companies”. Journal of International Financial Management and Accounting 14(1): 26-63.
http://dx.doi.org/10.1111/1467-646X.00089
Pacter, P. 2008 Available at http://www.iasplus.com, Deloitte.
Patten, D. M. 1991. “Exposure Legitimacy and Social Disclosure”. Journal of Accounting and Public Policy 10: 297-308.
http://dx.doi.org/10.1016/0278-4254(91)90003-3
Patten. 2002. “Give or Take on the Internet: An Examination of the Disclosure Practices of Insurance Firm Web Innovators”. Journal of Business Ethics 36(3): 247-259.
http://dx.doi.org/10.1023/A:1014009229437
Rizk, R., R. Dixon and A. Woodhead. 2008. “Corporate Social and Environmental Reporting: A Survey of Disclosure Practices in Egypt”. Social Responsibility Journal 4(3): 306-323.
http://dx.doi.org/10.1108/17471110810892839
Roberts, R. 1992. “Determinants of Corporate Social Responsibility Disclosure an Application of Stakeholder Theory”. Accounting Organizations and Society 17(6): 595-612.
http://dx.doi.org/10.1016/0361-3682(92)90015-K
Salomone. And Galluccio. 2001. “Environmental Issues and Financial Reporting Trends in the Chemical and Oil and Gas Industries”. Working paper, n° 32.
Samuel, J. M and J.C. Oliga. 1982. “Accounting Standards in Developing Countries”. The International Journal of Accounting 18(1): 69-88.
Saudagaran, S M and G. C. Biddle. 1992. “Financial Disclosure Levels and Foreign Stock ExchangeListing Decisions”. Journal of International Financial Management and Accounting 13(3): 106-148.
http://dx.doi.org/10.1111/j.1467-646X.1992.tb00025.x
Tilt, C. 2001. “Environmental Disclosure by Australian Companies: What is Happening Outside the Annual Report?”. Research paper series.
Williams, S. M. and C. Pei. 1999. “Corporate Social Disclosure by Listed Companies on Their Web Sites: An international comparison”. The International Journal of Accounting 34(3): 389-419.
http://dx.doi.org/10.1016/S0020-7063(99)00016-3
Xiao, J. Z., H. Yang and C. W. Chow. 2004. “The Determinants and Characteristics of Voluntary Internet-based Disclosures by Listed Chinese Companies”. Journal of Accounting and Public Policy 23: 191.
http://dx.doi.org/10.1016/j.jaccpubpol.2004.04.002
Zheng, J., H. Guo and W. Wang. 2009. “The Influence of Financial Factors on Environmental Information Disclosure in Chine Chemical Industry”. Xi’an Jiaotong University, PRC, Working paper, available at: http:/ssrn.com/abstract=1305005.
Abu-Baker, N and K. Naser. 2000. “Empirical Evidence on Corporate Social Disclosure (CSD) Practices in Jordan”. International Journal of Commerce and Management 10: 18.
http://dx.doi.org/10.1108/eb047406
Adams, C. A and N. Kuasirikum. 2000. “A Comparative Analysis of Corporate Reporting on Ethical Issues by UK and German Chemical and Pharmaceutical Companies”. The European Accounting Review 9(1): 53-79.
http://dx.doi.org/10.1080/096381800407941
Adams, C and G. Frost. 2004. “The Development of Corporate Web-Sites and Implications for Ethical, Social and Environmental Reporting Through These Media”. The Institute of Chartered Accounting of Scotland, Edinburg.
Al-Htaybat, K. 2011. ”Corporate Online Reporting in 2010 : A Case Study in Jordan”. Journal of Financial Reporting and Accounting 9(1): 5-26.
http://dx.doi.org/10.1108/19852511111139778
Al-Arussi, A. S., M. H Selamet and M. Hanefah. 2009. “Determinants of Financial and Environmental Disclosures Through the Internet by Malaysian Companies”. Asian Review of Accounting 17(1): 59-76.
http://dx.doi.org/10.1108/13217340910956513
Al-Moataz, E and F. Lakhal. 2008. “Corporate Governance Disclosures and Corporate Governance Mechanisms: The Case of Saudi Listed Companies”. working paper.
Aly, D., J. Simon and K. Hussainey. 2009. “Determinants of Corporate Internet Reporting: Evidence From Egypt”. Managerial Auditing Journal 25(2): 182-202.
http://dx.doi.org/10.1108/02686901011008972
Anderson, A., N. Elias and D. Zéghal. 1998. “Environmental Management and Reporting”. Ed.CGA. Canada.
Andrew, J. 2003. “Corporate Governance, the Environment, and the Internet”. Electronic Green Journal 19, http://egj.lib.uidaho. edu/egj19/andrew1.html.
Barth, M. E., M. McNichols and P. Wilson. 1997. “Factors Influencing Firm’s Disclosures About Environmental Liabilities”. Review in Accounting Studies 2: 35-65.
http://dx.doi.org/10.1023/A:1018321610509
Bartolomeo, M. 2000. “Environmental Management Accounting in Europe: Current Practice and Future Potential”. European Accounting Review 9(1): 31-53.
http://dx.doi.org/10.1080/096381800407932
Ben Othman, H. and D. Zeghal. 2010. “Investigating Transparency and Disclosure Determinants at Firm-level in MENA Emerging Markets”. International Journal Accounting, Auditing and Performance Evaluation 6(4): 368-36.
http://dx.doi.org/10.1504/IJAAPE.2010.036152
Ben Naceur, S., N. Boubakri and S. Ghazouani. 2009. “Privatization and Financial Market Development in Emerging Countries: A Comparative Study”. Working paper.
Brammer, J. S and P. Stephen. 2006. “Corporate Reputation and Social Performance: The Importance of Fit”. Journal of Management Studies, Blackwell Publishing 43(3): 435-455.
http://dx.doi.org/10.1111/j.1467-6486.2006.00597.x
Briston, R. J. 1990. “Accounting in Developing Countries: Indonesia and the Solomon Islands as Case Studies for Regional Corporation”. Research in Third World Accounting 1: 195-216.
Colman, R. 2004. “Satisfied Stakeholders”. CMA Management 78(1): 5-22.
Colman, R. 2005. “Corporate Social Responsibility: Where Do We Really Stand”. CMA Management 78(9): 28-33.
Cormier, D. and M. Magnan. 2003. “Environmental Reporting Management: A European Perspective”. Journal of Accounting and Public Policy 22(1): 43-62.
http://dx.doi.org/10.1016/S0278-4254(02)00085-6
Cowen, S. S., L. B. Ferreri and L. D. Parker. 1987. “The Impact of Corporate Characteristics on Social Responsibility Disclosure: A typology and Frequency-Based Analysis”. Accounting, Organizations and society: 111-122.
http://dx.doi.org/10.1016/0361-3682(87)90001-8
Craven, B. N. and C. L. Marston. 1999. “Financial Reporting on the Internet by leading UK Companies”. The European Accounting Review 8(2): 321-333.
http://dx.doi.org/10.1080/096381899336069
Debreceny, R., G. L. Gray and A. Rahman. 2002. “The Determinants of Internet Financial Reporting”. Journal of Accounting and Public Policy 21(4-5): 371-394.
http://dx.doi.org/10.1016/S0278-4254(02)00067-4
Dutta, P. and S. Bose. 2008. “Corporate Environmental Reporting on the Internet in Bangladesh: An Exploratory Study”. International Review of Business Research 4(3): 138-150.
Gamble, G., K. Hsu., C. Jackson and C. Tollerson. 1996. “Environmental Disclosures in Annual Reports: An International Perspective”. International Journal of Accounting 31(3): 293-331.
http://dx.doi.org/10.1016/S0020-7063(96)90022-9
Haniffa, R. M. and T. Cooke. 2005. “The Impact of Culture and Governance on Corporate Social Reporting”. Journal of Accounting and Public Policy 24: 391-430.
http://dx.doi.org/10.1016/j.jaccpubpol.2005.06.001
Halme, M. and M. Huse. 1997. “The Influence of Corporate Governance, Industry and Country Factors on Environmental Reporting”. Scandinavian Journal of Management 13: 137-157.
http://dx.doi.org/10.1016/S0956-5221(97)00002-X
Hopkins, M. 2004. “Corporate Social Responsibility”. An Issues Paper, Policy Integration Department World Commission on the Social Dimension of Globalisation International Labour Office.
Leuz, C. and R. Verrecchia. 2000. “The Economic Consequences of Increased Disclosure”. Journal of Accounting Research 38(supplement 2000): 91-124.
http://dx.doi.org/10.2307/2672910
Lodhia, S. 2006. “The World Wide Web and Its Potential for Corporate Environmental Communication: A Study into Present Practices in the Australian Mineral Industry”. The International Journal of Digital Accounting Research 6(11): 65-94.
Lopez-Claros, A. and K. Schwab. 2005. “The Arab world Competitiveness Report”. Hampshire, UK: Palgrave Macmillan, World Economic Forum.
Lymer, A. M. 1997.” The Use of the Internet for Corporate Reporting- A Discussion of the Issues and Survey of Current Usage in the UK”. Journal of Financial Information systems.
Monova, J. M. and F. Lena. 2000. “Environmental Disclosures in the Annual Reports of Large Size Companies in Spain”. European Accounting Review 9(1): 7-29.
http://dx.doi.org/10.1080/096381800407923
Mitiva, E. 2007. “Corporate Governance in the Middle East and North Africa”. The Executive. (November- December):38-40, available at http://www.eiod.org.
Naser, K., A. Al-Hussaini., D. Al-Kwari and R. Nuseibeh. 2006. “Determinants of Corporate Social Disclosure in Developing Countries: The Case of Qatar”. Advances in International Accounting 19: 1-23.
http://dx.doi.org/10.1016/S0897-3660(06)19001-7
Neu, D., H. Warsame and K. Pedwell. 1998. “Managing Public Impressions: Environmental Disclosures in Annual Reports”. Accounting, Organizations and Society 23(April): 265-283.
http://dx.doi.org/10.1016/S0361-3682(97)00008-1
Omran, M., A. Bolbol and A. Fatheldin. 2008. “Corporate Governance and Firm Performance in Arab Equity Markets: Does Ownership Concentration Matter?”. International Review of Law and Economics 28: 32-45.
http://dx.doi.org/10.1016/j.irle.2007.12.001
Oyelere, P., F. Laswad and R. Fisher. 2003. “Determinants of Internet Financial Reporting by New Zealand Companies”. Journal of International Financial Management and Accounting 14(1): 26-63.
http://dx.doi.org/10.1111/1467-646X.00089
Pacter, P. 2008 Available at http://www.iasplus.com, Deloitte.
Patten, D. M. 1991. “Exposure Legitimacy and Social Disclosure”. Journal of Accounting and Public Policy 10: 297-308.
http://dx.doi.org/10.1016/0278-4254(91)90003-3
Patten. 2002. “Give or Take on the Internet: An Examination of the Disclosure Practices of Insurance Firm Web Innovators”. Journal of Business Ethics 36(3): 247-259.
http://dx.doi.org/10.1023/A:1014009229437
Rizk, R., R. Dixon and A. Woodhead. 2008. “Corporate Social and Environmental Reporting: A Survey of Disclosure Practices in Egypt”. Social Responsibility Journal 4(3): 306-323.
http://dx.doi.org/10.1108/17471110810892839
Roberts, R. 1992. “Determinants of Corporate Social Responsibility Disclosure an Application of Stakeholder Theory”. Accounting Organizations and Society 17(6): 595-612.
http://dx.doi.org/10.1016/0361-3682(92)90015-K
Salomone. And Galluccio. 2001. “Environmental Issues and Financial Reporting Trends in the Chemical and Oil and Gas Industries”. Working paper, n° 32.
Samuel, J. M and J.C. Oliga. 1982. “Accounting Standards in Developing Countries”. The International Journal of Accounting 18(1): 69-88.
Saudagaran, S M and G. C. Biddle. 1992. “Financial Disclosure Levels and Foreign Stock ExchangeListing Decisions”. Journal of International Financial Management and Accounting 13(3): 106-148.
http://dx.doi.org/10.1111/j.1467-646X.1992.tb00025.x
Tilt, C. 2001. “Environmental Disclosure by Australian Companies: What is Happening Outside the Annual Report?”. Research paper series.
Williams, S. M. and C. Pei. 1999. “Corporate Social Disclosure by Listed Companies on Their Web Sites: An international comparison”. The International Journal of Accounting 34(3): 389-419.
http://dx.doi.org/10.1016/S0020-7063(99)00016-3
Xiao, J. Z., H. Yang and C. W. Chow. 2004. “The Determinants and Characteristics of Voluntary Internet-based Disclosures by Listed Chinese Companies”. Journal of Accounting and Public Policy 23: 191.
http://dx.doi.org/10.1016/j.jaccpubpol.2004.04.002
Zheng, J., H. Guo and W. Wang. 2009. “The Influence of Financial Factors on Environmental Information Disclosure in Chine Chemical Industry”. Xi’an Jiaotong University, PRC, Working paper, available at: http:/ssrn.com/abstract=1305005.
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2013-04-05
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Akrout, M. M., & Othman, H. B. (2013). A Study of the Determinants of Corporate Environmental Disclosure in MENA Emerging Markets. Journal of Reviews on Global Economics, 2, 46–59. https://doi.org/10.6000/1929-7092.2013.02.5
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