Determinants and consequences of sustainable development goals disclosure: International evidence: International evidence

Sudipta  Bose; Habib Khan; Sukanta Bakshi

doi:10.1016/j.jclepro.2023.140021

Determinants and consequences of sustainable development goals disclosure: International evidence: International evidence

Sudipta Bose
, Habib Khan
, Sukanta Bakshi

Canberra Business School

Research output: Contribution to journal › Article › peer-review

77 Citations (Scopus)

102 Downloads (Pure)

Abstract

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.

Original language	English
Article number	140021
Pages (from-to)	1-58
Number of pages	58
Journal	Journal of Cleaner Production
Volume	434
DOIs	https://doi.org/10.1016/j.jclepro.2023.140021
Publication status	Published - 1 Jan 2024

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 2 Zero Hunger
SDG 3 Good Health and Well-being
SDG 4 Quality Education
SDG 5 Gender Equality
SDG 6 Clean Water and Sanitation
SDG 7 Affordable and Clean Energy
SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure
SDG 10 Reduced Inequalities
SDG 13 Climate Action
SDG 14 Life Below Water
SDG 15 Life on Land
SDG 16 Peace, Justice and Strong Institutions
SDG 17 Partnerships for the Goals

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ArticleFinal published version, 1.43 MBLicence: CC BY

Cite this

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title = "Determinants and consequences of sustainable development goals disclosure: International evidence: International evidence",

abstract = "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.",

keywords = "SDG reporting, Determinants, Consequence, International evidence, capital market,, ESG performance, Sustainability committee, Firm value, Sustainable development goals, International, Stakeholder engagement",

author = "Sudipta Bose and Habib Khan and Sukanta Bakshi",

note = "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: {\textcopyright} 2023 The Author(s)",

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doi = "10.1016/j.jclepro.2023.140021",

language = "English",

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T1 - Determinants and consequences of sustainable development goals disclosure: International evidence

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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 - https://www.scopus.com/pages/publications/85179007477

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 -

Determinants and consequences of sustainable development goals disclosure: International evidence: International evidence

Abstract

UN SDGs

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