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Does stakeholder engagement encourage environmental reporting? The mediating role of firm performance
Author(s) -
PuchetaMartínez María Consuelo,
BelOms Inmaculada,
Rodrigues Lúcia Lima
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.2555
Subject(s) - stakeholder engagement , stakeholder , business , stakeholder analysis , stakeholder theory , public relations , political science
Stakeholder engagement policies have become a relevant strategy in firms because they may signal to stakeholders the commitment of the firm to the stakeholder's needs and demands. In this research, we aim to examine whether firms with stakeholder engagement policies tend to disclose more environmental information. Additionally, we analyse the moderating role played by firm performance on the association between stakeholder engagement and environmental disclosure. As far as we know, previous research has not addressed these two questions. Our evidence shows that firms with stakeholder engagement policies are more likely to report environmental information, while firm performance negatively moderates the association between stakeholder engagement and environmental disclosure. These findings have implications for policymakers, firms, stakeholders and other researchers.