Business Group Affiliation and Corporate Sustainability Reporting

Document Type : Research Paper

Authors

1 Assistant Professor of Accounting, University of Guilan, Rasht, Iran.

2 Associate Professor of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran.

10.22103/jak.2019.12706.2787

Abstract

Objective: One of the main characteristics of emerging economies is the important role of business groups. Business group affiliation can bring about various positive consequences for the firms related to such groups. This study aims to examine the effects of business group affiliation on corporate sustainability reporting level.
Method: The checklist developed by the Global Reporting Initiative, GRI, was used to measure the level of corporate sustainability reporting. The research hypothesis was applied to 102 firms listed in the Tehran Stock Exchange for the years 2013-2017, and then was tested, using multivariate regression based on panel data model.
Result: The findings suggest that business group affiliation is likely to improve the corporate sustainability reporting level. Moreover, the results of additional analysis reveal that the relationship between business group affiliation and sustainability reporting level is more pronounced in larger firms.
Conclusion: Affiliated companies to business groups have more incentives for sustainability reporting due to less concern for short-term financial interests.

Keywords

References

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Journal of Accounting Knowledge
Volume 10, Issue 3 - Serial Number 38
November 2019
Pages 169-197

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History

  • Receive Date: 13 September 2018
  • Revise Date: 21 November 2018
  • Accept Date: 05 May 2019

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