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Environmental policy disclosures and sustainable development: Determinants, measure and impact on firm value for ADX listed companies
Author(s) -
Kolsi Mohamed Chakib,
Attayah Osama F
Publication year - 2018
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.1496
Subject(s) - corporate social responsibility , profitability index , leverage (statistics) , business , accounting , enterprise value , index (typography) , listing (finance) , stock exchange , robustness (evolution) , value (mathematics) , finance , public relations , machine learning , political science , computer science , biochemistry , chemistry , world wide web , gene
Corporate social responsibility (CSR) disclosures have gained great attention in both the media and the academic community for many decades. In this paper, we shed light on three aspects of CSR disclosures, namely the determinants , measure and impact on firm value . Using a sample of 61 firms listed on the ADX for the period 2010–2014 and computing an eight‐item index, our results are conclusive and show that listing history, governmental sector, board size, financial leverage and firm size have a positive impact on CSR disclosures. By contrast, firm profitability, industrial sector and ownership concentration have no impact on the extent of CSR disclosures. Finally, CSR disclosures have no impact on firm value as proxied by market‐to‐book ratio. Our results remain unchanged using additional robustness checks. Our study highlights the three aspects of social disclosures (i.e. determinants, measure and impact) in an emerging stock market (ADX). Our findings will help investors when assessing firm value and policy makers when issuing CSR disclosure rules.