IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v17y2008i5p294-303.html
   My bibliography  Save this article

Do environmental social controls matter to Australian capital investment decision‐making?

Author

Listed:
  • Donald G. Ross
  • Dorothy Wood

Abstract

This paper looks at how environmental social controls (ESCs), namely mandatory disclosure, regulation, subsidies and stakeholder opinion, are perceived in terms of their relative importance by Australian capital investment managers. We find that regulation and stakeholder opinion are the most important ESCs. Subsidies generally have less influence, while mandatory disclosure has almost no impact on capital investment decisions. However, even the more important ESCs have much less than impact than mainstream financial and strategic factors. Policy makers seeking to influence capital investment managers will have to increase the power levels of the various ESCs if they are to change behaviour. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Donald G. Ross & Dorothy Wood, 2008. "Do environmental social controls matter to Australian capital investment decision‐making?," Business Strategy and the Environment, Wiley Blackwell, vol. 17(5), pages 294-303, July.
    • Handle: RePEc:bla:bstrat:v:17:y:2008:i:5:p:294-303
    DOI: 10.1002/bse.622
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.622
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.622?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mark Cohen & V. Santhakumar, 2007. "Information Disclosure as Environmental Regulation: A Theoretical Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 599-620, July.
    2. Boyd, James, 1998. "Searching for the Profit in Pollution Prevention: Case Studies in the Corporate Evaluation of Environmental Opportunities," RFF Working Paper Series dp-98-30, Resources for the Future.
    3. Alkaraan, Fadi & Northcott, Deryl, 2006. "Strategic capital investment decision-making: A role for emergent analysis tools?," The British Accounting Review, Elsevier, vol. 38(2), pages 149-173.
    4. Pablo del Río González, 2005. "Analysing the factors influencing clean technology adoption: a study of the Spanish pulp and paper industry," Business Strategy and the Environment, Wiley Blackwell, vol. 14(1), pages 20-37, January.
    5. Mark A. White, 1996. "Environmental Finance: Value And Risk In An Age Of Ecology," Business Strategy and the Environment, Wiley Blackwell, vol. 5(3), pages 198-206, September.
    6. Dorothy Wood & Donald G. Ross, 2006. "Environmental social controls and capital investments: Australian evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(4), pages 677-695, December.
    7. David Weil & Archon Fung & Mary Graham & Elena Fagotto, 2006. "The effectiveness of regulatory disclosure policies," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(1), pages 155-181.
    8. Ellis Connolly & Kevin J. Fox, 2006. "The Impact of High-Tech Capital on Productivity: Evidence from Australia," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 50-68, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li Chang & Wenjing Li & Xiaoyan Lu, 2015. "Government Engagement, Environmental Policy, and Environmental Performance: Evidence from the Most Polluting Chinese Listed Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 24(1), pages 1-19, January.
    2. Ling Jin & Jun-Hyeok Choi & Saerona Kim & Dong-Hoon Yang, 2021. "Government Environmental Pressure and Market Response to Carbon Disclosure: A Study of the Early Chinese ETS Implementation," Sustainability, MDPI, vol. 13(24), pages 1-18, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hyunhoe Bae, 2012. "Reducing Environmental Risks by Information Disclosure: Evidence in Residential Lead Paint Disclosure Rule," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(2), pages 404-431, March.
    2. Häckner, Jonas & Herzing, Mathias, 2017. "The effectiveness of environmental inspections in oligopolistic markets," Resource and Energy Economics, Elsevier, vol. 48(C), pages 83-97.
    3. Alkaraan, Fadi & Elmarzouky, Mahmoud & Hussainey, Khaled & Venkatesh, V.G., 2023. "Sustainable strategic investment decision-making practices in UK companies: The influence of governance mechanisms on synergy between industry 4.0 and circular economy," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    4. Yi Lian & Yunfeng Shang & Fangbin Qian, 2024. "RETRACTED ARTICLE: Spatial effects of green finance development in Chinese provinces under the context of high-quality energy development," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-32, April.
    5. Belay, Dagim G. & Jensen, Jørgen D., 2020. "‘The scarlet letters’: Information disclosure and self-regulation: Evidence from antibiotic use in Denmark," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    6. Joanna Mackiewicz-Łyziak, 2010. "Wpływ infrastruktury na produktywność w gospodarce Polski," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 41-61.
    7. Chunhua Xin & Xiufeng Lai, 2022. "Does the Environmental Information Disclosure Promote the High-Quality Development of China’s Resource-Based Cities?," Sustainability, MDPI, vol. 14(11), pages 1-26, May.
    8. Bennear, Lori S. & Olmstead, Sheila M., 2008. "The impacts of the "right to know": Information disclosure and the violation of drinking water standards," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 117-130, September.
    9. Elbakry, Ashraf E. & Nwachukwu, Jacinta C. & Abdou, Hussein A. & Elshandidy, Tamer, 2017. "Comparative evidence on the value relevance of IFRS-based accounting information in Germany and the UK," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 28(C), pages 10-30.
    10. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.
    11. Cornelie Crous & John R. Owen & Lochner Marais & Samkelisiwe Khanyile & Deanna Kemp, 2021. "Public disclosure of mine closures by listed South African mining companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1032-1042, May.
    12. Nicolás Gambetta & María Antonia García-Benau & Ana Zorio-Grima, 2017. "Corporate social responsibility and bank risk profile: evidence from Europe," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 517-542, September.
    13. Kim, Sooin & Yoo, Jungmin, 2022. "Corporate Opacity, Corporate Social Responsibility, and Financial Performance," Finance Research Letters, Elsevier, vol. 49(C).
    14. André, Francisco J. & Sokri, Abderrahmane & Zaccour, Georges, 2011. "Public Disclosure Programs vs. traditional approaches for environmental regulation: Green goodwill and the policies of the firm," European Journal of Operational Research, Elsevier, vol. 212(1), pages 199-212, July.
    15. Triguero, Angela & Moreno-Mondéjar, Lourdes & Davia, María A., 2013. "Drivers of different types of eco-innovation in European SMEs," Ecological Economics, Elsevier, vol. 92(C), pages 25-33.
    16. Tifang Ye & Xiuli Xiang & Xiangyu Ge & Keling Yang, 2022. "Research on Green Finance and Green Development Based Eco-Efficiency and Spatial Econometric Analysis," Sustainability, MDPI, vol. 14(5), pages 1-29, February.
    17. Chuan Shao & Jia Wei & Chuanzhe Liu, 2021. "Empirical Analysis of the Influence of Green Credit on the Industrial Structure: A Case Study of China," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    18. Kovács, Balázs & Lehman, David W. & Carroll, Glenn R., 2020. "Grade inflation in restaurant hygiene inspections: Repeated interactions between inspectors and restaurateurs," Food Policy, Elsevier, vol. 97(C).
    19. Shahiduzzaman, Md. & Alam, Khorshed, 2014. "The long-run impact of Information and Communication Technology on economic output: The case of Australia," Telecommunications Policy, Elsevier, vol. 38(7), pages 623-633.
    20. Youbin KANG, 2021. "The rise, demise and replacement of the Bangladesh experiment in transnational labour regulation," International Labour Review, International Labour Organization, vol. 160(3), pages 407-430, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:17:y:2008:i:5:p:294-303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.