Universitas Indonesia Conferences, International Accounting Conference - 2017

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Creating Value to the Organization through Increased Transparency of Environmental Information
Haslinda Yusoff, Afaf Izzati Nafhah Radzi, Faizah Darus

Last modified: 2017-07-11

Abstract


An organization’s strategic decision on environmental disclosure practice has a potential in enhancing its competitive advantage. The objective of this study is to examine the possible link between the quality of environmental information disclosed and organizational value creation. Content analyses of the 2014 annual and sustainability reports of ninety (90) ISO 14001 certified companies have been undertaken. All data gathered were analysed using multiple regression analyses. The multiple regression analyses were employed for hypotheses testing. The descriptive analysis reveals that generally the disclosed environmental information are general and qualitative in nature. Thru the multiple regression analyses performed, a positive and significant relationship between the quality of environmental disclosure and value creation has been found. Such a finding hints the capability of environmental disclosure practice in enhancing organizational value creation i.e. both the financial and non-financial aspects. A great extent of environmental disclosures may inform and facilitate company’s stakeholders thus resulting in value being created for the organizations.


Keywords


Environmental Disclosure, Value Creation, ISO 14001

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