Relationship between Environmental Reporting Practices and Financial Performance of Some Select Companies in the USA: An Empirical Study
DOI:
https://doi.org/10.31674/ijmhs.2025.v09i01.004Abstract
Environmental reporting involves organizations disclosing their environmental performance to promote transparency, accountability, and sustainability. This study examines corporate environmental disclosure practices in the U.S., emphasizing their relationship with financial attributes and their impact on environmental performance. By analyzing key financial indicators like CRR, WTA, DBTA, CFTA, and ROTA - the study finds a meaningful collective relationship with environmental disclosure (ENVNDS). However, more than half of the variability (55.3%) remains unexplained, suggesting that additional factors influence ENVNDS. The weak and statistically insignificant relationship between DBTA and WTA further highlights the complexity of financial-environmental interactions. Benchmarking frameworks like GRI-302, GRI-303, GRI-305, and GRI-306 help assess corporate compliance and environmental performance. Despite some limitations, environmental reporting has become integral to corporate transparency and sustainability efforts in the U.S.A. Future research should focus on improving environmental disclosure metrics, evaluating the influence of reporting on organizational behaviour, and assessing the long-term benefits of transparency. A deeper understanding of these factors can enhance reporting frameworks and drive meaningful corporate sustainability initiatives.
Keywords:
CRR, DBTA, Environmental Reporting, ENVNDSDownloads
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