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This study examines the effect of sustainability reporting on firm value, using panel ARDL to distinguish between short-run and long-run effects. The study extracted secondary data from 15 listed firms on the Ghana Stock Exchange from 2003 to 2022. The panel ARDL model helped to clarify research gaps on the effect of sustainability in terms of short and long-run effects. The findings show that the economic, social, and environmental performance disclosures have a positive and significant effect on the firm’s value in the long run, while economic and environmental performance disclosures have an insignificant effect on the firm’s value in the short run, with the exception of social performance disclosure. This suggests that sustainability reporting takes time to manifest in firm value. Again, the results indicate that the model restores the short-run relationship to the dynamic long-term equilibrium with an adjustment speed of 51.3%. These findings help managers identify which aspects of sustainability reporting impact firm value immediately and in the long run, guiding resource allocation and stakeholder communication. The study recommends that regulators should make the sustainability frameworks in Ghana mandatory and encourage firms to comply fully with the Global Reporting Initiative to enhance the quality of sustainability reporting. [ABSTRACT FROM AUTHOR]

Background: A debate exists about the effects of environmental disclosure becoming mandatory on the quality and the actual commitment of such reporting. This study seeks to assess whether differences exist when comparing the disclosure quality and comprehensiveness of Spanish companies' non-financial reports under voluntary and mandatory reporting regimes spanning the period 2015–2022. Methods: We present a novel approach by utilizing cutting-edge Natural Language Processing (NLP) techniques, chiefly ClimateBERT (a transformer-LLM—Large Language Model) and ClimateBERT fine-tuned on ClimaText (a public database for climate change topic detection), to scrutinize and compare 729 voluntary and mandatory non-financial corporate reports from 96 Spanish companies spanning multiple sectors. Since transformers can only be accurately estimated by organizations with lots of computing power, but not by small organizations, we have also fine-tuned the transformer, something cheaper in computational terms, thus making it affordable to all companies, investors, regulators, policymakers, and other stakeholders. Results: Our results document interesting patterns and strong trends of enhancement in specificity and commitment, particularly in risk-related texts, spanning the period 2015–2022. We provide descriptive evidence and an explorative appeal that underscores the regulations' influence, among many other factors also identified by prior literature (other stakeholders' requirements and expectations from companies, aside from the regulatory stakeholders), in fostering a higher quality and more comprehensive approach to climate risk reporting by Spanish companies, with enhanced alignment to internationally recognized reporting guidelines. In addition, the comparative analysis between the transformer model and the fine-tuned transformer model revealed subtle yet insightful differences in how climate disclosures are interpreted. The fine-tuned model exhibited an increased sensitivity to elements of commitment, specificity, and neutrality in climate texts. Conclusions: Our findings highlight the potential of cutting-edge NLP techniques, like fine-tuned transformers, in the quantitative assessment of the evolution and quality of environmental disclosures, either mandatory or voluntary. It is the first paper applying a fine-tuned transformer-LLM to compare the currently in force European mandatory environmental disclosure regulation's impact on Spanish companies' environmental disclosure versus previous voluntary reporting. [ABSTRACT FROM AUTHOR]

This study adopts a multidimensional approach to examining sustainability reporting practices among notebook manufacturers, integrating traditional corporate sustainability reports with social media data from platforms like Twitter, Facebook, and Reddit. Using advanced machine learning techniques, including multi-label classification and BERT-based sentiment analysis, the research highlights the key environmental, social, and economic dimensions that consumers prioritize. The findings reveal a significant misalignment between consumer concerns, reflected in social media discourse, and the focus of corporate sustainability reports. While companies emphasize environmental impacts and supply chain management, consumers prioritize product reliability, community obligations, and educational initiatives. This gap indicates a need for companies to realign their sustainability strategies to better meet consumer expectations, emphasizing trust-building, community engagement, and educational efforts. Despite these differences, the study also identifies shared concerns between consumers and producers, such as environmental impacts, supply chain sustainability, and transparency in sustainability claims. Based on these insights, the study recommends fostering transparent communication, engaging in inclusive dialogue, and committing to accountable actions across all sustainability dimensions. By aligning corporate reporting with consumer expectations, this research provides guidance to help companies advance towards a circular economy and enhance Extended Producer Responsibility (EPR) in the electronics industry, ultimately benefiting both companies and consumers in the pursuit of a more sustainable future. [ABSTRACT FROM AUTHOR]

Understanding the determinants of sustainability reporting is critical for improving sustainability reporting frameworks. This study systematically reviewed 154 papers published between 2000 and 2020 in Accounting, Business, and Management journals on sustainability reporting determinants. Key sustainability reporting determinants identified include corporate governance, owner/manager attributes, managerial perceptions, and firm-specific variables. Other interesting findings revealed a notably strong geographic bias, with most studies focused on developed countries and large firms, with limited attention to developing countries and small- and medium-sized enterprises (SMEs). Additionally, there is a growing trend toward Triple Bottom Line (TBL) reporting, which addresses the economic, social, and environmental dimensions of sustainability reporting, reflecting a growing scholarly attention to the interlinkages among these dimensions, though some studies lacked a theoretical framework. Lastly, many studies from developing countries, especially in Asia and Africa, were published in non-ranked journals, highlighting quality concerns. This study offers valuable insights and directions for future research while encouraging a more holistic approach to sustainability reporting. [ABSTRACT FROM AUTHOR]

Purpose: The aim of this study is to critically examine the transparency and reporting practice of Environmental, Social, and Governance (ESG) controversies within the pharmaceutical and textile industry. Based on the four core dimensions of transparency, we explore which reporting medium is most frequently chosen for the disclosure of negative ESG contributions, the nature and information content of the disclosed incidents and how voluntary adherence to sustainability reporting standards and independent assurances affect the reporting. Design/methodology/approach: We use conceptual content analysis and employ a counter-accounting approach to analyse the disclosure of 190 ESG controversies in 104 corporate reports from the pharmaceutical and textile industries, covering a three-year period from 2018–2020. Findings: The very large majority of controversies are reported only once in the legal proceedings section of the annual report, but not again in the sustainability report, where it would be necessary to provide a balanced picture. Moreover, companies tend to disclose only those controversies that are either associated with high media attention or are expected to be related to litigation, resulting in 26 per cent of controversies not being disclosed at all. The overall quality of disclosure is unsatisfactory and in need of improvement, but comparably higher in the pharmaceutical industry than in the textile industry. Interestingly, neither the application of sustainability reporting standards nor independent assurance seems to positively impact the disclosure behaviour. Originality/value: Our paper provides new insights into the shortcomings of current ESG controversy disclosures by revealing patterns of selective reporting practices and the strategic framing of issues. In addition, it contributes to the debates on corporate cherry-picking in the adoption of sustainability reporting guidelines and on the effectiveness of external assurance of sustainability reports. Based on the findings, it offers important implications for practitioners, in particular management, policy makers, rating agencies and assurance providers. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to investigate the role of gender equality in the relationship between the critical mass of women's representation on boards and companies' decisions to adopt external assurance on their sustainability reports. Design and methodology: The relationship is investigated using secondary data from an international sample of 1924 firms across 41 countries sourced from the Eikon database, ensuring comprehensive coverage of firms that publish sustainability reports. The study uses a logistic regression model to study two aspects: first, the relationship between the critical mass of women's representation on boards and companies' decisions to provide external assurance on their sustainability reports, and second, the moderating role of countries' gender equality policies using the World Bank's Women, Business and the Law (WBL) index. Findings: The findings of this study indicate that in the case of sustainability assurance adoption, the critical mass of women's representation on boards is important in countries where the gender equality index is low. Therefore, this study extends the findings of prior studies investigating the critical mass of women's representation on boards by proving that critical mass is more effective in countries that have a lower gender equality index. Originality: The two main contributions of this study are the findings that (i) the association of women's representation on boards with companies' decisions to provide assurance over their sustainability reports is affected by critical mass, and (ii) the critical mass of women's representation on boards is essential in countries that have a lower gender equality index. [ABSTRACT FROM AUTHOR]

The primary concern of research in the area of fraud risk relevant to sustainability reporting lies in understanding the potential for fraudulent or misleading reporting practices and developing strategies and tools to identify and prevent such behaviors. Taking into consideration that significant research has yet to be conducted on fraud risk models associated with sustainability reporting, this study represents an innovative contribution. It uses a mixed-methods approach to design a fraud risk model based on sustainability reporting. Given its type and approach, this research does not posit any hypotheses involving thematic analysis and the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method. This study is exploratory and applied, aiming to design a model through a mixed-methods methodology. Therefore, the research is hypothesis-free and instead utilizes a qualitative sample of experts and academics in the field of accounting from Iran and Denmark. The DEMATEL technique identifies key external and internal factors that significantly impact sustainability reporting, including comprehensive internal controls, strong governance and oversight, training and awareness, the utilization of technology, and data analytics. The influence of stakeholders, third-party audits, and the credibility of sustainability reports emerges as particularly significant in this context, exceeding the impact of other factors. These findings underscore that stakeholders, third-party audits, and report credibility to play a more prominent role in shaping sustainability performance compared to other considerations. This would imply that such variables remain key drivers in the perceptiveness and effectiveness of sustainability performance. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) is a management concept that enables companies to incorporate social and environmental concerns into their business operations and stakeholder interactions. Standardized reporting methods have been employed to give stakeholders a clearer understanding of the sustainability objectives and initiatives of businesses. Reporting on sustainability initiatives is now guided by several guidelines, including the United Nations (UN) Global Compact. This study assessed the determinants of sustainability reporting by resource-based companies listed on the two stock exchanges in Zimbabwe. The research objectives were to assess the evolution of sustainability reporting among resourcebased companies and evaluate its drivers using the Global Reporting Initiative (GRI) G4 standards. Data was collected from the annual audited reports of the companies over a period of five years. The study showed that there was an increase in sustainability reporting from 2018 to 2022. The correlation between sustainability reporting and profitability, sales, firm size, and capitalisation revealed weak to moderate relationships. The Tobit regression results show that sustainability reporting is driven by firm size, capitalisation, and sales. There is a need for improved firm size, capitalisation, and sales to improve the sustainability reporting by the resource-based firms in Zimbabwe. [ABSTRACT FROM AUTHOR]

From the perspective of virtue ethics, ethical organizational cultures prompt employees to act ethically. According to Kaptein's Corporate Ethical Virtues (CEV) model, this organizational ability is favored by the development of seven key corporate virtues (Clarity, Congruency, Feasibility, Supportability, Transparency, Discussability, and Sanctionability). The paper intends to connect the CEV model with sustainability reporting, which is taking on increasing relevance today due to factors such as the European Union's recent Directives on corporate non‐financial communication. In particular, the paper's objective is to examine to what extent and the way in which the virtues of the model have a role in sustainability reporting. Furthermore, this goal is enriched with an added focus, which is attention paid to actions taken by companies, and expressed in their sustainability reporting, in implementing virtuous behavior amidst the difficulties triggered by the COVID‐19 crisis. To achieve its aim, the paper presents and discusses a study of the role of the CEV model within two large companies in the logistics sector, through a content analysis of their sustainability reports covering the period 2018–2020 complemented by information from their corporate websites. The results of the analysis highlight both an overall relevance of the virtues included in the CEV model and the role of measures adopted by organizations to cope with COVID‐19 as a significant component of their sustainability performance in the pandemic period. Finally, the paper elaborates on several theoretical and practical implications stemming from the study. [ABSTRACT FROM AUTHOR]

Despite the recognized advantages of sustainability disclosure and transparency in reducing information asymmetries, the quality of sustainability reports often falls short. Measuring sustainability disclosure transparency is challenging due to its multidimensional nature, necessitating a comprehensive approach. Moreover, the impact of sustainability reporting transparency on firm performance remains ambiguous. Therefore, this study examines 177 reports from companies listed in the Dow Jones sustainability index (DJSI) World index, manually collecting information on transparency indicators and subdimensions. Grounded on the disclosure, clarity, and accuracy (DCA) framework introduced by Schnackenberg and Tomlinson, a factor analysis is conducted to construct the transparency index, followed by testing research hypotheses using a linear regression model via ordinary least squares (OLS). By providing a quantitative assessment of sustainability report transparency, this study investigates its influence on firm performance. Our findings support existing research linking firm performance to the transparency of sustainability reports. Surprisingly, contrary to expectations, our study reveals that increased transparency efforts are associated with lower firm performance. [ABSTRACT FROM AUTHOR]

More businesses are embedding stakeholder engagement (SE) practices in their corporate disclosures. This article explores the extent to which SE practices are featured in the sustainability reports (SRs) of 48 Italian food and beverage businesses, following the latest Global Reporting Initiative (GRI) standards. The researchers analyze the content of their SRs dated 2020 and 2021. They utilize a panel regression technique to examine the relationship between stakeholder engagement disclosures (SED) and corporate financial performance (CFP), and to investigate the mediating role of SR assurance. The results show a positive and significant relationship between SED and CFP. They also confirm that there is a moderating effect from SR assurance on this causal path. However, the findings reveal that SED in SRs of Italian food companies is still moderate. This contribution builds on the logic behind the stakeholder theory. It implies that there is scope for food companies to forge relationships with stakeholders. It indicates that it is in their interest to disclose material information about their SE practices in their SR and to organize third party assurance assessments in order to improve their legitimacy with stakeholders. [ABSTRACT FROM AUTHOR]

This study aims to analyze the factors that can influence sustainability reporting practices of energy companies in Southeast Asia. In particular, this study examines two factors, namely CEO narcissism and board gender diversity, which may influence sustainability reporting practices of energy companies in four countries: Indonesia, the Philippines, Thailand, and Malaysia. This study utilized content analysis of annual reports over a three-year period from 2017 to 2019 as the basis for data collection, resulting in 198 pieces of data over the entire period. The results of this study show that CEO narcissism and board gender diversity have a significant impact on the sustainability reporting of energy companies in the four Asian countries. Furthermore, the results of this study show that board gender diversity and CEO narcissism simultaneously have a significant impact on the sustainability reporting of energy companies. It is expected that this study will make a valuable contribution to the existing literature and serve as a reference point for future studies aimed at advancing knowledge and scholarship. The findings of this study not only provide a substantial contribution to the existing body of knowledge, but they also serve as a point of reference for further investigation into the field of sustainability reporting. This study can serve as a valuable reference for future research on the impact of corporate sustainability reporting in Southeast Asia. [ABSTRACT FROM AUTHOR]

In this paper, we identify the synergic link between the organisational elements sustainability and digitalisation by implementing digital sustainability reporting (DSR) in the context of the Corporate Sustainability Reporting Directive (CSRD). Founded on bibliometric analyses and a literature-based scientific discussion, this conceptual paper provides modern definitions of sustainability, digitalisation, and digitainability. Additionally, based on analyses of the CSRD regulatory framework, a definition of DSR is suggested. Our findings align with those of other scholars who highlight the crucial role of digitainability in successfully executing organisational changes. Furthermore, the CSRD's role in providing a digital framework for sustainability reporting (SR) and shaping organisational digitainability is outlined. This study uncovers a novel collection of emerging digitainability concepts compliant with the DSR requirements under which organisations can pursue organisational transformation. This paper also provides DSR-related recommendations to top management for adopting organisational systems to comply with CSRD reporting requirements. [ABSTRACT FROM AUTHOR]

A textual analysis of corporate‐social responsibility (CSR) reports reveals that companies engaged in environmental violations report differently from firms with a clean record. The violators issue longer, more positive and more frequent reports to relay environmental content that is more copious but less readable. The violator firms appear to modify their reporting practices right after committing a violation. The findings suggest that culpable firms exploit the current unregulated–unaudited state of CSR reporting as a means of greenwashing and call for institutional change. Our results are robust to a number of industry‐firm characteristics, including board composition, ownership dispersion and international presence. [ABSTRACT FROM AUTHOR]

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Given the significance of sustainability reporting, there has been a notable increase in studies in this field. However, due to shortcomings in initial studies, it is not feasible to make decisions based solely on their findings. This research provides a comprehensive examination of the impact of corporate governance structures on sustainability reporting, based on the results of previous studies. Ownership structure, board of directors, management characteristics, corporate governance performance, and the quality of internal controls are identified as influential factors. While the research literature has reached a consensus on the impact of some factors, it has encountered contradictory findings regarding others. [ABSTRACT FROM AUTHOR]