Page 39 - DUT ICGA Abstract Book

IMPACT OF OF ENVIRONMENTAL REPORTING ON ON THE VALUE OF OF SOUTH AFRICAN MANUFACTURING FIRMS LISTED ON THE JSE
Nolwando L Mgilane Haruna Maama Ferina Marimuthu
Department of of Financial Accounting Durban University of of Technology
Abstract
Environmental reporting is a a a a a a a a recent novelty in in both corporate field and academia around the globe The increase in in in in environmental environmental pollution and degradation had resulted in in in in a a a a a a a a a call for environmental environmental reporting which is now regarded as the the the central and the the the most debatable matter of the the the high society Accordingly during the the the the recent three decades there has been a a a a a a growing concern among the the the the stakeholders that the the the the use of annual financial statements which are widely recognised as a a a a a a a a a a a traditional reporting is is no longer a a a a a a a a a a a sufficient tool to to to unfold the performance of firms As a a a a a a a a result stakeholders started to to to demand an an an additional non- financial information which narrates a a a a a a a a a full story about how firms’ business activities affect the environment and the society where firms operate In essence environmental reporting serves as an an avenue through which firms report and and disclose their their environmental and and societal impact as as well as as their their active projects dedicated for both social and environmental aspects However the the question remains on on on whether does environmental reporting has an an an an impact on on financial performance and firm value? Hence the main aim of this specific study is is to investigate the the impact of of environmental reporting on on the the value of of South African manufacturing manufacturing firms listed listed on Johannesburg stock exchange (JSE) The census of listed listed manufacturing manufacturing firm firm was used as as a a a a a a a a a a population of of this study and the integrated annual reports of of listed manufacturing firms from 2016 – 2020 were thoroughly scrutinized to achieve then main aim of this paper Thus descriptive statistic Wilcoxon signed ranked test were used examine the level and trend of environmental reporting practices of South African listed manufacturing firms Furthermore the the regression techniques which are called random and and fixed effect were adopted to examine the relationship between environmental reporting and the the profitability o of firms Additionally Econometrics model which is also known as the the Ohlson (1995) value value relevant model was used to investigate the the impact of of environmental reporting on on the the value value of of South African manufacturing firms listed on on JSE
The findings of this study indicated a a a a a a positive relationship between environmental reporting and the profitability o of manufacturing firms which is measured by means of Tobin’s Q KEYWORDS: Environmental reporting Social Responsibility Reporting Firm Value JSE
listed manufacturing firms Book of Abstracts 37