Standardization of sustainability reporting: rationale for better investment decision-making
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Author(s)Henry Mynhardt ,Inna MakarenkoLink to ORCID Index: https://orcid.org/0000-0001-7326-5374
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Alex PlastunLink to Linkedin: https://www.linkedin.com/pub/plastun-alexey/57/7bb/444/Link to ORCID Index: https://orcid.org/0000-0001-8208-7135
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DOIhttp://dx.doi.org/10.21511/pmf.06(2).2017.01
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Article InfoVolume 6 2017, Issue #2, pp. 7-15
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Creative Commons Attribution 4.0 International License
The role of sustainability reporting in investment decision-making is not clear and obvious. Despite the steady increase of such statements in corporate annual reports, the relationship between the sustainability reporting and the financial performance of companies is not always positive. The main problems of sustainability reporting nowadays are insufficient comparability of reporting, accuracy (lack of materiality, reliability and validity of indicators), lack of common approaches for its verification.
Synthesis of standardization and regulation features of sustainability reporting, which is provided in this paper in different dimensions (countries, regulators standards), allows to identify long-term trends of this reporting to ensure its quality during investment decision-making in traditional and responsible financial markets.
- Keywords
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JEL Classification (Paper profile tab)G02, G14, M41
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References42
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Tables7
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Figures1
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- Fig. 1. Instruments of standardization and regulation in SR by the company types in 2016
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- Table 1. Problematic areas of SR presentation
- Table 2. The number of regulatory instruments used in the SR all over the world, period 2013-2016
- Table 3. Countries with the biggest portion of SR in annual reports of the companies and mandatory requirements used for these purposes
- Table 4. Regulatory instruments for mandatory SR disclosure in financial sector
- Table 5. Exchanges with ESG reporting as a listing rule as of 01/01/2017
- Table 6. SR standards all over the world in 2006-2016 as of 01/01/2017
- Table 7. Regulatory instruments for assurance of SR
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The role of accounting in sustainable development
Inna Makarenko ,
Alex Plastun
doi: http://dx.doi.org/10.21511/afc.01(2).2017.01
Accounting and Financial Control Volume 1, 2017 Issue #2 pp. 4-12 Views: 7824 Downloads: 4774 TO CITEIdeology of Sustainable Development and Sustainable Development Goals influence the transformation of business processes in the companies. Professional accountants are important part of this transformation. In this paper the role of accounting in Sustainable Development Goals achievement is discussed. Different approaches to structuring the role of professional accountants in Sustainable Development are investigated. Among them are types of roles that perform accountants, their professional functions, skills and competencies in the corporate environment. As the result a holistic vision of the role of accounting in sustainable development in the new economic conditions is provided.
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The relationship between corporate social responsibility and earnings management: accounting for endogeneity
Hyunjung Choi , Byungchul Choi ,
Jungyoon Byun
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.06
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 69-84 Views: 4659 Downloads: 549 TO CITE АНОТАЦІЯThis study examines the relationship between corporate social responsibility (CSR) and earnings management after controlling for endogeneity of CSR. Using a sample of non-financial firms listed on Korean Securities Market between 2002 and 2010, this study finds that ignoring endogeneity biases the estimated relation between CSR and earnings management. Specifically, the results show that the negative and significant relation between CSR commitment and discretionary accruals reported in the previous studies becomes insignificant. However, the negative and significant relation between CSR commitment and real activities manipulation remains significant even when the endogeneity of CSR commitment is taken into account. Therefore, this study provides evidence that proactive CSR engagement significantly affects firm’s practice of real activities manipulation, while it does not affect its practice of discretionary accruals. These results indicate that CSR commitment leads managers to be more responsible in management of operational activities than in accruals management.
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Does board composition have an impact on CSR reporting?
Patrick Velte
doi: http://dx.doi.org/10.21511/ppm.15(2).2017.02
Problems and Perspectives in Management Volume 15, 2017 Issue #2 pp. 19-35 Views: 4522 Downloads: 1725 TO CITE АНОТАЦІЯCorporate social responsibility (CSR) reporting plays a key role in management control, particularly in light of the increased demand for non-financial reporting after the financial crisis of 2008–2009. This literature review evaluates 47 empirical studies that concentrate on the influence of several board composition variables on the quantity and quality of CSR reporting. The author briefly introduces the research framework that underpins current empirical studies in this field. This is followed by a discussion of the main variables of board composition: (1) committees (audit and CSR committees), (2) board independence, (3) board expertise, (4) CEO duality, (5) board diversity (gender and foreign diversity), (6) board activity, and (7) board size. The author, then, summarizes the key findings, discusses the limitations of the existing research and offers useful recommendations for researchers, firm practice and regulators.
