91 research outputs found
Political, social and economic determinants of corporate social disclosure by multi-national firms in environmentally sensitive industries
Using examples from environmentally sensitive industries, the paper examines the determinants of corporate social disclosure (CSD). The paper moves beyond the traditional literature in two respects. First it is international in scope, examining the accounting disclosure responses of multi-national companies to the pressures implied by the nature and scope of their operations. Second, variables measuring political risk and social development are developed so that these pressures can be measured, thereby introducing new dimensions to the literature. In common with previous studies, financial risk, size and other control variables are included. The relationships are tested econometrically utilising regression techniques not previously applied in the CSD literature but nonetheless more generally appropriate when using count dependent variables. Results suggest that managers feel an unequal sense of responsibility to different constituencies and their disclosure priorities are determined by stock market accountability, lobbying power of their domestic audience and the political risk of their activities rather than the impact of their activities in countries of operation
Political, social and economic determinants of corporate social disclosure by multi-national firms in environmentally sensitive industries.
Using examples from environmentally sensitive industries, the paper examines the determinants of corporate social disclosure (CSD). The paper moves beyond the traditional literature in two respects. First it is international in scope, examining the accounting disclosure responses of multi-national companies to the pressures implied by the nature and scope of their operations. Second, variables measuring political risk and social development are developed so that these pressures can be measured, thereby introducing new dimensions to the literature. In common with previous studies, financial risk, size and other control variables are included. The relationships are tested econometrically utilising regression techniques not previously applied in the CSD literature but nonetheless more generally appropriate when using count dependent variables. Results suggest that managers feel an unequal sense of responsibility to different constituencies and their disclosure priorities are determined by stock market accountability, lobbying power of their domestic audience and the political risk of their activities rather than the impact of their activities in countries of operation.
Political, social and economic determinants of corporate social disclosure by multi-national firms in environmentally sensitive industries. Working Paper 28.
Abstract Using examples from environmentally sensitive industries, the paper examines the determinants of corporate social disclosure (CSD). The paper moves beyond the traditional literature in two respects. First it is international in scope, examining the accounting disclosure responses of multi-national companies to the pressures implied by the nature and scope of their operations. Second, variables measuring political risk and social development are developed so that these pressures can be measured, thereby introducing new dimensions to the literature. In common with previous studies, financial risk, size and other control variables are included. The relationships are tested econometrically utilising regression techniques not previously applied in the CSD literature but nonetheless more generally appropriate when using count dependent variables. Results suggest that managers feel an unequal sense of responsibility to different constituencies and their disclosure priorities are determined by stock market accountability, lobbying power of their domestic audience and the political risk of their activities rather than the impact of their activities in countries of operation
Quantity versus Quality: The Impact of Environmental Disclosures on the reputations of UK plcs
The theoretical framework of this paper integrates quality-signalling theory and the resource based view of the firm to test the differential effects of the quantity and quality of environmental disclosures on the firmâs environmental reputation. Uniquely, the study uses a quality-adjusted method of content analysis, so that sentences are not merely counted but also weighted to reflect their likely significance. Investments in research and development and diversification, as potential methods of enhancing of environmental reputation, are also considered. In doing so the paper complements and extends the work of Toms (2002). The results confirm the framework and models tested in the original paper on more recent data and also suggest that quality of environmental disclosure rather than mere quantity has a stronger effect on the creation of environmental reputation amongst executive and investor stakeholder groups. Research and development expenditure, and under certain circumstances, diversification, also add to reputation
Does the sole description of a tax authority affect tax evasion? The impact of described coercive and legitimate power.
Following the classic economic model of tax evasion, taxpayers base their tax decisions on economic determinants, like fine rate and audit probability. Empirical findings on the relationship between economic key determinants and tax evasion are inconsistent and suggest that taxpayers may rather rely on their beliefs about tax authorityâs power. Descriptions of the tax authorityâs power may affect taxpayersâ beliefs and as such tax evasion. Experiment 1 investigates the impact of fines and beliefs regarding tax authorityâs power on tax evasion. Experiments 2-4 are conducted to examine the effect of varying descriptions about a tax authorityâs power on participantsâ beliefs and respective tax evasion. It is investigated whether tax evasion is influenced by the description of an authority wielding coercive power (Experiment 2), legitimate power (Experiment 3), and coercive and legitimate power combined (Experiment 4). Further, it is examined whether a contrast of the description of power (low to high power; high to low power) impacts tax evasion (Experiments 2-4). Results show that the amount of fine does not impact tax payments, whereas participantsâ beliefs regarding tax authorityâs power significantly shape compliance decisions. Descriptions of high coercive power as well as high legitimate power affect beliefs about tax authorityâs power and positively impact tax honesty. This effect still holds if both qualities of power are applied simultaneously. The contrast of descriptions has little impact on tax evasion. The current study indicates that descriptions of the tax authority, e.g., in information brochures and media reports, have more influence on beliefs and tax payments than information on fine rates. Methodically, these considerations become particularly important when descriptions or vignettes are used besides objective information
What explains the NorthâSouth divide in Italian tax compliance? An experimental analysis
This is the author accepted manuscript. The final version is available from Palgrave Macmillan via the DOI in this recordI undertake a comparative study assessing the NorthâSouth divide in Italian tax compliance, employing the largest behavioral tax compliance experiment to date. Contrary to a large body of literature, I argue that willingness to pay taxes is constructed within a specific institutional environment and reflects the countryâs quality of institutions. To test this hypothesis, I use controlled tax compliance experiments from four laboratories in Capua, Rome, Bologna, and Milan. By employing the experimental method, I am able to hold institutions constant allowing me to isolate cultural variation. Contrary to cultural explanations for tax compliance, when controlling the institutional environment, there is no difference in tax compliance. Furthermore, using social value orientation to compare prosociality, I also find no differences between the two regions. I therefore conclude that individualsâ relationship to their states shapes these behavioral differences in tax compliance.Funds for this research were provided by the European Research Council (Grant Agreement No. 295675 )
Sustainability disclosure and reputation: a comparative study
âThis is a post-peer-review, pre-copyedit version of an article published in Corporate Reputation Review. The definitive publisher-authenticated version Corporate Reputation Review 14(2), pp.79-96 is available online at: http://www.palgrave-journals.com/crr/index.htmlâDrawing on legitimacy theory, we discuss that a companyâs reputation is a determinant of
sustainability disclosure. Specifically, we consider the concept of reputation into three
dimensions for analysis: stakeholdersâ commitment, financial performance and media
exposure. This paper differs from previous social and environmental reporting studies in
that it investigates both internal and external contextual factors that influence disclosure
practice. We claim that companies with a good financial performance, that are adopting an
active strategic position towards stakeholders and that are exposed to significant public
pressure are more likely to use sustainability disclosure in order to communicate their
legitimacy to operate to stakeholders. Moreover the paper analyses a wide range of
corporate reports for their social and environmental content using an international sample
that allows for a comparison of disclosure practices among Continental European, UK and
USA companies. Our results show that stakeholder commitment and media exposure are
positively associated with sustainability disclosure. Moreover, we find evidence that the
drivers of disclosure vary by information type
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Corporate tax: what do stakeholders expect?
Motivated by the ongoing controversy surrounding corporate tax, this article presents a study that explores stakeholder expectations of corporate tax in the context of UK business. We conduct a qualitative analysis of in-depth interviews with representatives of community groups (NGOs/think tanks and special interest groups), as well as interviews with those representing business groups (business leaders and industry representatives). We then identify eight themes that together describe âwhatâ companies need to do, âhowâ they need to do it, and âwhyâ they need to do it, if they wish to appeal to a wide group of interested parties. We discuss our findings based on the corporate social responsibility literature and propose novel ways for community groups and business groups to connect on the topic of corporate tax, suggesting opportunities and themes for dialogue and potential steps to co-create solutions in a stakeholder society
Don't Blame the Messenger: A Field Experiment on Delivery Methods for Increasing Tax Compliance
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