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The Impact of Environmental and Social Disclosure on Earnings Persistence

Author

Listed:
  • Thai Van Ha

    (National Academy of Education Management, Phan Dinh Giot, Thanh Xuan, Ha Noi, Vietnam,)

  • Amena Sibghatullah

    (College of Management Sciences PAF-KIET University, Pakistan,)

  • Sang Soo Chae

    (Department of Economics and Statistics, Korea University, South Korea,)

  • Talla M. Aldeehani

    (College of business administration, Kuwait University, Kuwait)

Abstract

This paper investigates the relationship between environmental and social disclosure with earnings persistence as a proxy of earnings quality. This research is based on the secondary data obtained from the final reports of the listed firms of Malaysia. The empirical analysis applied on 136 listed firms of Bursa Malaysia throughout 2011 to 2018 with the observation of 1088. The measure of earnings persistence is derived from the panel data based on the regression of the time series model. The results of our study indicate that environmental and social disclosures are positively correlated with earnings persistence. This means that the more the level of commitment a firm shows with environmental and social responsibility, the more persistent earnings it carries. Moreover, earnings persistence is the proxy of earnings quality, and it is desirable by every investor.

Suggested Citation

  • Thai Van Ha & Amena Sibghatullah & Sang Soo Chae & Talla M. Aldeehani, 2020. "The Impact of Environmental and Social Disclosure on Earnings Persistence," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 690-696.
    • Handle: RePEc:eco:journ2:2020-06-89
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    References listed on IDEAS

    as
    1. Artikis, Panagiotis G. & Papanastasopoulos, Georgios A., 2016. "Implications of the cash component of earnings for earnings persistence and stock returns," The British Accounting Review, Elsevier, vol. 48(2), pages 117-133.
    2. Helen Brown-Liburd & Jeffrey Cohen & Valentina L. Zamora, 2018. "CSR Disclosure Items Used as Fairness Heuristics in the Investment Decision," Journal of Business Ethics, Springer, vol. 152(1), pages 275-289, September.
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    Cited by:

    1. Parvez Alam Khan & Satirenjit Kaur Johl & Shireenjit K. Johl, 2021. "Does adoption of ISO 56002‐2019 and green innovation reporting enhance the firm sustainable development goal performance? An emerging paradigm," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2922-2936, November.

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    More about this item

    Keywords

    Environmental Disclosure; Social Disclosure; Earnings;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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