TY - JOUR
T1 - Determinants and consequences of sustainable development goals disclosure: International evidence
T2 - International evidence
AU - Bose, Sudipta
AU - Khan, Habib
AU - Bakshi, Sukanta
N1 - Funding Information:
The study's data comprise panel time-series data, enabling the estimation of the model using various approaches, such as pooled ordinary least squares (OLS), fixed effects and random effects. To determine the most suitable regression model for the analysis, we employ Hausman's (1978) test to select a preferred regression model for the analysis. The test results provide support for utilising a regression model with random effects for year and industry, emphasising their importance in the analysis. Furthermore, we conduct the Breusch–Pagan Lagrange Multiplier (LM) test to determine between random effects or OLS regression in selecting the model, with the test results supporting OLS regression. We also test validity for year and industry fixed effects, with the F-test results supporting year and industry fixed effects. Therefore, we estimate the pooled OLS model with year and industry fixed effects. Furthermore, we employ robust standard errors clustered at the firm level to control for heteroscedasticity and serial correlation issues in our study's regression models. Additionally, variance inflation factor (VIF) values are used to check for potential multicollinearity.
Publisher Copyright:
© 2023 The Author(s)
PY - 2024/1/1
Y1 - 2024/1/1
N2 - The study examines the determinants and consequences of firm-level Sustainable Development Goals (SDG) disclosure using a sample of 6941 firm-year observations from 30 countries during 2016–2019. Based on 17 SDG indicators developed by the United Nations (UN), the study forms an SDG Disclosure Index. The findings reveal that approximately 48.40% of firms in the sample had active stakeholder engagement programs, 53.90% maintained a sustainability committee, and 62.60% issued standalone sustainability reports. The findings indicate that Environmental, Social and Governance (ESG) performance, stakeholder engagement, and the issuance of standalone sustainability reports positively influence firm-level SDG disclosure. Moreover, the study finds a positive association between higher levels of SDG disclosure and increased firm value. Our findings are robust using a battery of robustness tests. Given the growing global focus on SDGs and the extent of SDG disclosure by firms, this study's findings hold significant implications for decision-makers and other stakeholders.
AB - The study examines the determinants and consequences of firm-level Sustainable Development Goals (SDG) disclosure using a sample of 6941 firm-year observations from 30 countries during 2016–2019. Based on 17 SDG indicators developed by the United Nations (UN), the study forms an SDG Disclosure Index. The findings reveal that approximately 48.40% of firms in the sample had active stakeholder engagement programs, 53.90% maintained a sustainability committee, and 62.60% issued standalone sustainability reports. The findings indicate that Environmental, Social and Governance (ESG) performance, stakeholder engagement, and the issuance of standalone sustainability reports positively influence firm-level SDG disclosure. Moreover, the study finds a positive association between higher levels of SDG disclosure and increased firm value. Our findings are robust using a battery of robustness tests. Given the growing global focus on SDGs and the extent of SDG disclosure by firms, this study's findings hold significant implications for decision-makers and other stakeholders.
KW - SDG reporting, Determinants, Consequence, International evidence, capital market,
KW - ESG performance
KW - Sustainability committee
KW - Firm value
KW - Sustainable development goals
KW - International
KW - Stakeholder engagement
UR - http://www.scopus.com/inward/record.url?scp=85179007477&partnerID=8YFLogxK
U2 - 10.1016/j.jclepro.2023.140021
DO - 10.1016/j.jclepro.2023.140021
M3 - Article
SN - 0959-6526
VL - 434
SP - 1
EP - 58
JO - Journal of Cleaner Production
JF - Journal of Cleaner Production
M1 - 140021
ER -
