Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management
Document Type
Journal Article
Publication Title
Corporate Social Responsibility and Environmental Management
Volume
29
Issue
5
First Page
1186
Last Page
1202
Publisher
Wiley
School
School of Business and Law
RAS ID
43678
Funders
Matching Fund 2021 by Indonesia's Ministry of Education, Culture, Research, and Technology
Abstract
This article examines the relationship between investment efficiency (INVEFF) and environmental, social, and governance (ESG) reporting. We posit corporate integration management (CIM), which is reflected by the level of INVEFF, is a crucial driver for the better quality of ESG reporting. But there is a second possibility which ESG reporting is viewed as a different firm's burden, and therefore, it is a form of inefficiency. We test our hypothesis in Indonesia's unique setting of nonfinancial listed firms from 2010 to 2018. We find that INVEFF is confirmed as one of the critical drivers for enhancing ESG reporting quality. Our result is consistent during several robustness checks. Furthermore, we document that a positive relationship between INVEFF and ESG reporting is not incurred in all circumstances. Our study is one of few studies that focus on quantitative measurement of CIM and examines its relationship with ESG reporting.
DOI
10.1002/csr.2263
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Comments
Harymawan, I., Nasih, M., Agustia, D., Putra, F. K. G., & Djajadikerta, H. G. (2022). Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management. Corporate Social Responsibility and Environmental Management, 29(5), 1186-1202. https://doi.org/10.1002/csr.2263