IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i6p3462-d521157.html
   My bibliography  Save this article

Determinants of Corporate Anti-Corruption Disclosure: The Case of the Emerging Economics

Author

Listed:
  • Maider Aldaz Odriozola

    (Faculty of Economics and business, Section of Gipuzkoa, University of the Basque Country, 20018 Donostia, Spain)

  • Igor Álvarez Etxeberria

    (Faculty of Economics and business, Section of Gipuzkoa, University of the Basque Country, 20018 Donostia, Spain)

Abstract

Corruption is a key factor that affects countries’ development, with emerging countries being a geographical area in which it tends to generate greater negative effects. However, few empirical studies analyze corruption from the point of view of disclosure by companies in this relevant geographical area. Based on a regression analysis using data from the 96 large companies from 15 emerging countries included in the 2016 International Transparency Report, this paper seeks to understand what determinants affect such disclosure. In that context, this paper provides empirical evidence to understand the factors that influence reporting on anti-corruption mechanisms in an area of high economic importance that has been little studied to date, pointing to the positive effect of press freedom in a country where the company is located and with the industry being the unique control variable that strengthens this relationship.

Suggested Citation

  • Maider Aldaz Odriozola & Igor Álvarez Etxeberria, 2021. "Determinants of Corporate Anti-Corruption Disclosure: The Case of the Emerging Economics," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3462-:d:521157
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/6/3462/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/6/3462/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brunetti, Aymo & Weder, Beatrice, 2003. "A free press is bad news for corruption," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1801-1824, August.
    2. Freille, Sebastian & Haque, M. Emranul & Kneller, Richard, 2007. "A contribution to the empirics of press freedom and corruption," European Journal of Political Economy, Elsevier, vol. 23(4), pages 838-862, December.
    3. Haniffa, R.M. & Cooke, T.E., 2005. "The impact of culture and governance on corporate social reporting," Journal of Accounting and Public Policy, Elsevier, vol. 24(5), pages 391-430.
    4. Ataur Rahman Belal & Stuart M. Cooper & Robin W. Roberts, 2013. "Vulnerable and exploitable: The need for organisational accountability and transparency in emerging and less developed economies," Accounting Forum, Taylor & Francis Journals, vol. 37(2), pages 81-91, June.
    5. Ana Belen Tulcanaza-Prieto & HoKyun Shin & Younghwan Lee & Chang Won Lee, 2020. "Relationship among CSR Initiatives and Financial and Non-Financial Corporate Performance in the Ecuadorian Banking Environment," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    6. Bertrand Venard, 2008. "Organizational isomorphism and corruption," Post-Print hal-00760557, HAL.
    7. Denis Cormier & Michel Magnan & Barbara Van Velthoven, 2005. "Environmental disclosure quality in large German companies: Economic incentives, public pressures or institutional conditions?," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 3-39.
    8. Dutta, Nabamita & Roy, Sanjukta, 2016. "The interactive impact of press freedom and media reach on corruption," Economic Modelling, Elsevier, vol. 58(C), pages 227-236.
    9. Houqe, Muhammad Nurul & Monem, Reza M., 2016. "Reply to the Discussion of “IFRS Adoption, Extent of Disclosure, and Perceived Corruption: A Cross-Country Study”," The International Journal of Accounting, Elsevier, vol. 51(3), pages 382-384.
    10. Barkemeyer, Ralf & Preuss, Lutz & Lee, Lindsay, 2015. "On the effectiveness of private transnational governance regimes—Evaluating corporate sustainability reporting according to the Global Reporting Initiative," Journal of World Business, Elsevier, vol. 50(2), pages 312-325.
    11. Chowdhury, Shyamal K., 2004. "The effect of democracy and press freedom on corruption: an empirical test," Economics Letters, Elsevier, vol. 85(1), pages 93-101, October.
    12. Bhattacharyya, Sambit & Hodler, Roland, 2015. "Media freedom and democracy in the fight against corruption," European Journal of Political Economy, Elsevier, vol. 39(C), pages 13-24.
    13. Tarun Khanna & Krishna G. Palepu & Suraj Srinivasan, 2004. "Disclosure Practices of Foreign Companies Interacting with U.S. Markets," Journal of Accounting Research, Wiley Blackwell, vol. 42(2), pages 475-508, May.
    14. Charles Cho, 2009. "Legitimation Strategies Used in Response to Environmental Disaster: A French Case Study of Total SA's Erika and AZF Incidents," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 33-62.
    15. Aerts, Walter & Cormier, Denis & Magnan, Michel, 2006. "Intra-industry imitation in corporate environmental reporting: An international perspective," Journal of Accounting and Public Policy, Elsevier, vol. 25(3), pages 299-331.
    16. Bertrand Venard & Mohamed Hanafi, 2008. "Organizational Isomorphism and Corruption in Financial Institutions: Empirical Research in Emerging Countries," Journal of Business Ethics, Springer, vol. 81(2), pages 481-498, August.
    17. Rob Gray & Mohammed Javad & David M. Power & C. Donald Sinclair, 2001. "Social and Environmental Disclosure and Corporate Characteristics: A Research Note and Extension," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(3-4), pages 327-356.
    18. Houqe, Muhammad Nurul & Monem, Reza M., 2016. "IFRS Adoption, Extent of Disclosure, and Perceived Corruption: A Cross-Country Study," The International Journal of Accounting, Elsevier, vol. 51(3), pages 363-378.
    19. Stephen Brammer & Andrew Millington, 2008. "Does it pay to be different? An analysis of the relationship between corporate social and financial performance," Strategic Management Journal, Wiley Blackwell, vol. 29(12), pages 1325-1343, December.
    20. Eduardo Ortas & Isabel Gallego‐Alvarez & Igor Álvarez Etxeberria, 2015. "Financial Factors Influencing the Quality of Corporate Social Responsibility and Environmental Management Disclosure: A Quantile Regression Approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 362-380, November.
    21. Mazzi, Francesco & Slack, Richard & Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2019. "Country-level corruption and accounting choice: Research & development capitalization under IFRS," The British Accounting Review, Elsevier, vol. 51(5).
    22. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
    23. Muhammad Azizul Islam & Thusitha Dissanayake & Steven Dellaportas & Shamima Haque, 2018. "Anti-bribery disclosures: A response to networked governance," Accounting Forum, Taylor & Francis Journals, vol. 42(1), pages 3-16, March.
    24. Rob Gray & Mohammed Javad & David M. Power & C. Donald Sinclair, 2001. "Social and Environmental Disclosure and Corporate Characteristics: A Research Note and Extension," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(3‐4), pages 327-356, April.
    25. Torbjörn Tagesson & Veronica Blank & Pernilla Broberg & Sven‐Olof Collin, 2009. "What explains the extent and content of social and environmental disclosures on corporate websites: a study of social and environmental reporting in Swedish listed corporations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(6), pages 352-364, November.
    26. Bertrand Venard & Mohamed Hanafi, 2008. "Organizational isomorphism and corruption in financial institutions. An empirical research in emerging countries," Post-Print hal-00765483, HAL.
    27. Mohammed Hossain & Masrur Reaz, 2007. "The determinants and characteristics of voluntary disclosure by Indian banking companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 14(5), pages 274-288, December.
    28. Muhammad Azizul Islam & Shamima Haque & David Gilchrist, 2017. "NFPOs and their anti-corruption disclosure practices," Public Money & Management, Taylor & Francis Journals, vol. 37(6), pages 443-450, September.
    29. Shiwei Xu & Mingzhe Qiao & Bin Che & Peng Tong, 2019. "Regional Anti-Corruption and CSR Disclosure in a Transition Economy: The Contingent Effects of Ownership and Political Connection," Sustainability, MDPI, vol. 11(9), pages 1-14, April.
    30. Muhammad Azizul Islam & Shamima Haque & Thusitha Dissanayake & Philomena Leung & Karen Handley, 2015. "Corporate Disclosure in Relation to Combating Corporate Bribery: A Case Study of Two Chinese Telecommunications Companies," Australian Accounting Review, CPA Australia, vol. 25(3), pages 309-326, September.
    31. Renata Blanc & Charles H. Cho & Joanne Sopt & Manuel Castelo Branco, 2019. "Disclosure Responses to a Corruption Scandal: The Case of Siemens AG," Journal of Business Ethics, Springer, vol. 156(2), pages 545-561, May.
    32. Igor Álvarez Etxeberria & Maider Aldaz Odriozola, 2018. "The social reputation of European companies: Does anti‐corruption disclosure affect stakeholders' perceptions?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 713-721, September.
    33. Renata Blanc & Muhammad Azizul Islam & Dennis M. Patten & Manuel Castelo Branco, 2017. "Corporate anti-corruption disclosure," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 30(8), pages 1746-1770, October.
    34. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    35. Mazzi, Francesco & Slack, Richard & Tsalavoutas, Ioannis, 2018. "The effect of corruption and culture on mandatory disclosure compliance levels: Goodwill reporting in Europe," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 31(C), pages 52-73.
    36. Belal, Ataur Rahman & Cooper, Stuart M. & Roberts, Robin W., 2013. "Vulnerable and exploitable: The need for organisational accountability and transparency in emerging and less developed economies," Accounting forum, Elsevier, vol. 37(2), pages 81-91.
    Full references (including those not matched with items on IDEAS)

    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. Eduardo Ortas & Isabel Gallego‐Alvarez & Igor Álvarez Etxeberria, 2015. "Financial Factors Influencing the Quality of Corporate Social Responsibility and Environmental Management Disclosure: A Quantile Regression Approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 362-380, November.
    2. Cao, Feng & Peng, Songlan (Stella) & Ye, Kangtao, 2019. "Multiple large shareholders and corporate social responsibility reporting," Emerging Markets Review, Elsevier, vol. 38(C), pages 287-309.
    3. Nagore Aranguren Gómez & Stella Maldonado García, 2023. "Building Corporate Reputation Through Corporate Social Responsibility Disclosures. The Case of Colombian Companies," Corporate Reputation Review, Palgrave Macmillan, vol. 26(4), pages 279-303, November.
    4. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.
    5. Changwony, Frederick Kibon & Paterson, Audrey S., 2019. "Accounting practice, fiscal decentralization and corruption," The British Accounting Review, Elsevier, vol. 51(5).
    6. Igor Álvarez Etxeberria & Maider Aldaz Odriozola, 2018. "The social reputation of European companies: Does anti‐corruption disclosure affect stakeholders' perceptions?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 713-721, September.
    7. Rodríguez-Ariza, Lázaro & Frías Aceituno, José V. & García Rubio, Raquel, 2014. "El consejo de administración y las memorias de sostenibilidad," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 17(1), pages 5-16.
    8. Krishnamurti, Chandrasekhar & Pensiero, Domenico & Velayutham, Eswaran, 2021. "Corruption risk and stock market effects: Evidence from the defence industry," Pacific-Basin Finance Journal, Elsevier, vol. 70(C).
    9. Mitzi Cubilla‐Montilla & Ana‐Belén Nieto‐Librero & Ma Purificación Galindo‐Villardón & Ma Purificación Vicente Galindo & Isabel‐María Garcia‐Sanchez, 2019. "Are cultural values sufficient to improve stakeholder engagement human and labour rights issues?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 938-955, July.
    10. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    11. María del Mar Miras‐Rodríguez & Amalia Carrasco‐Gallego & Bernabé Escobar‐Pérez, 2015. "Are Socially Responsible Behaviors Paid Off Equally? A Cross‐cultural Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(4), pages 237-256, July.
    12. Muhammad Safdar Sial & Chunmei Zheng & Nguyen Vinh Khuong & Tehmina Khan & Muhammad Usman, 2018. "Does Firm Performance Influence Corporate Social Responsibility Reporting of Chinese Listed Companies?," Sustainability, MDPI, vol. 10(7), pages 1-12, June.
    13. Radhakrishnan, Suresh & Tsang, Albert & Liu, Rubing, 2018. "A Corporate Social Responsibility Framework for Accounting Research," The International Journal of Accounting, Elsevier, vol. 53(4), pages 274-294.
    14. Luo, Jinbo & Liu, Qigui, 2020. "Corporate social responsibility disclosure in China: Do managerial professional connections and social attention matter?," Emerging Markets Review, Elsevier, vol. 43(C).
    15. Akrum Helfaya & Tantawy Moussa, 2017. "Do Board's Corporate Social Responsibility Strategy and Orientation Influence Environmental Sustainability Disclosure? UK Evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1061-1077, December.
    16. Waris Ali & Jedrzej George Frynas, 2018. "The Role of Normative CSR‐Promoting Institutions in Stimulating CSR Disclosures in Developing Countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 373-390, July.
    17. Jakob Utgård, 2018. "Retail Chains’ Corporate Social Responsibility Communication," Journal of Business Ethics, Springer, vol. 147(2), pages 385-400, January.
    18. Emerald Edem Welbeck & Godfred Matthew Yaw Owusu & Rita Amoah Bekoe & John Amoah Kusi, 2017. "Determinants of environmental disclosures of listed firms in Ghana," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-12, December.
    19. Isabel Gallego‐Álvarez & Ivo Alexandre Quina‐Custodio, 2017. "Corporate Social Responsibility Reporting and Varieties of Capitalism: an International Analysis of State‐Led and Liberal Market Economies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 478-495, November.
    20. Concetta Carnevale & Maria Mazzuca & Sergio Venturini, 2012. "Corporate Social Reporting in European Banks: The Effects on a Firm's Market Value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(3), pages 159-177, May.

    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:gam:jsusta:v:13:y:2021:i:6:p:3462-:d:521157. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.