FIRM RESOURCES, QUALITY SIGNALS AND THE DETERMINANTS OF CORPORATE ENVIRONMENTAL REPUTATION: SOME UK EVIDENCE

Author: TOMS J.S.

Source: The British Accounting Review, Volume 34, Number 3, September 2002 , pp. 257-282(26)

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Abstract:

Using the example of the creation of corporate environmental reputation, the article offers a theoretical extension of the resource-based view of the firm to include quality signalling via the channel of accounting disclosure. The proposed framework is then tested via an empirical survey into the relationship between environmental disclosure and environmental reputation. The results suggest that implementation, monitoring and disclosure of environmental policies and their disclosure in annual reports contribute significantly to the creation of environmental reputation. Diverse institutional share ownership and low systematic risk are also associated with positive environmental reputation. Prior financial performance has no impact and there is no evidence that environmental reputation is created by a financial halo effect or by the availability of slack financial resources. Copyright 2002 Elsevier Science Ltd. All rights reserved

Language: English

Document Type: Research article

DOI: http://dx.doi.org/10.1006/bare.2002.0211

Affiliations: University of Nottingham

Publication date: 2002-09-01