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How cultural dimensions, legal systems, and industry affect environmental reporting? Empirical evidence from an international perspective
Author(s) -
GallegoÁlvarez Isabel,
PuchetaMartínez María Consuelo
Publication year - 2020
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2486
Subject(s) - individualism , uncertainty avoidance , indulgence , affect (linguistics) , isomorphism (crystallography) , institutional theory , business , perspective (graphical) , collectivism , normative , business ethics , hofstede's cultural dimensions theory , social psychology , public economics , public relations , sociology , psychology , economics , political science , law , social science , chemistry , communication , artificial intelligence , computer science , crystal structure , crystallography
Past research has paid little attention to the impact of stakeholder engagement, cultural, legal, and industrial contexts on environmental disclosure. Thus, the aim of this paper is to explore how these three institutional factors affect the reporting of environmental information by companies in different countries. This research draws on institutional theory: normative isomorphism, coercive isomorphism, and mimetic isomorphism. This study uses the generalised method of moments procedure. The findings show that the legal system and certain cultural dimensions such as individualism, uncertainty avoidance, long‐term orientation, and indulgence are determinants of voluntary disclosure of environmental information (individualism and indulgence—negatively; uncertainty avoidance and long‐term orientation—positively), particularly when companies belong to industries with high environmental risk.