Title

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

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

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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