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The Drivers of Corporate Water Disclosure in Enhancing Information Transparency

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  • Hui-Cheng Yu

    (School of Finance and Accounting, Fuzhou University of International Studies and Trade, Fuzhou 350202, China)

  • Lopin Kuo

    (Department of Accounting, Tamkang University, New Taipei City 25137, Taiwan)

  • Beiling Ma

    (School of Tourism Management, Hunan University of Technology and Business, Changsha 410205, China)

Abstract

This paper explores drivers of corporate water disclosure (CWD) from an aspect of accountability. Based on legitimacy theory and stakeholder theory, we propose six potential drivers of CWD. First, this paper uses an independent sample t -test to analyze differences in CWD among US firms. Later, potential drivers on CWD were identified using ordinal logit regression. These hypotheses posit that debt ratio, blockholders’ ownership ratio, inclusion in a capital market index (i.e., S&P500), and the status of belonging to a water-sensitive industry (WSensi) all have a positive effect on CWD. However, the relations of firm size and profitability on CWD are insignificant. This suggests that the supervision of blockholders and creditors can effectively improve the transparency of CWD.

Suggested Citation

  • Hui-Cheng Yu & Lopin Kuo & Beiling Ma, 2020. "The Drivers of Corporate Water Disclosure in Enhancing Information Transparency," Sustainability, MDPI, vol. 12(1), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:1:p:385-:d:304803
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    References listed on IDEAS

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    Cited by:

    1. Liu, Chengyun & Su, Kun & Zhang, Miaomiao, 2021. "Water disclosure and financial reporting quality for social changes: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    2. Indah Fajarini Sri Wahyuningrum & Amin Chegenizadeh & Ain Hajawiyah & Sriningsih Sriningsih & Sri Utami & Mochamad Arief Budihardjo & Hamid Nikraz, 2023. "Determinants of Corporate Water Disclosure in Indonesia," Sustainability, MDPI, vol. 15(14), pages 1-17, July.

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