Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v13y2024i2p799-810.html
   My bibliography  Save this article

Sustainability Disclosures and Their Influence on Cost of Capital: A Comprehensive Bibliometric Study

Author

Listed:
  • Kiran Fatima

    (Department of Commerce, University of Punjab, Gujranwala Campus, Pakistan)

  • Habiba Azam

    (Head of Department, Riphah International College, Gujranwala, Pakistan)

  • Fiaz Ahmad Sulehri

    (Assistant Professor, Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Syeda Ambreen Fatima Bukhari

    (CEO RAH International & Lecturer, Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Hafiz Khalique Ur Rehman Virk

    (Lecturer, Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Yunjiang Geng

    (Professor, School of Accounting, Dongbei University of Finance and Economics, Dalian, Liaoning Province, China)

  • Marc Audi

    (Professor, Abu Dhabi School of Management (ADSM), UAE, University Paris 1 Pantheon Sorbonne, France)

  • Muhammad Saleem Ashraf

    (Associate Professor, Minhaj University Lahore, Lahore, Pakistan)

Abstract
Since the beginning of the twenty-first century, corporate social responsibility (CSR) has emerged as a global phenomenon in the business sector, capturing the attention of all stakeholders. Both early-stage and established firms often engage in high levels of voluntary disclosure, thereby reducing their cost of capital. This study synthesizes existing literature related to the impact of CSR on the cost of capital, focusing on sustainability and environmental disclosure. Utilizing the Scopus database, we conducted a bibliometric analysis through VOSviewer, analyzing 76 research articles from reputable academic journals published between 2002 and 2022. Our analysis identified three primary clusters: (1) the red cluster, titled "CSR and ESG disclosure and its impact on cost of capital" with 43 articles examining corporate social performance strategies, environmental risks, and green support; (2) the green cluster, titled "CSR activities and environmental or voluntary disclosure" with 21 articles focusing on corporate social investment, greenhouse gas emissions, voluntary disclosure, and their impact on cost of capital; and (3) the blue cluster, titled "sustainability disclosure or toxic release" with 12 articles centered on corporate social decoupling and toxic release. Our findings provide valuable insights for enhancing a firm's environmental and economic performance and offer guidance for decision-makers, lenders, investors, shareholders, and policymakers on reducing a firm's cost of capital through sustainability policies and strategies. Additionally, we highlight unexplored dimensions for future research, including forecasting firm investments using decoupling techniques, exploring the mediating role of CSR on the cost of capital, and examining the relationship between carbon intensity, greenhouse gases, and toxic release.

Suggested Citation

  • Kiran Fatima & Habiba Azam & Fiaz Ahmad Sulehri & Syeda Ambreen Fatima Bukhari & Hafiz Khalique Ur Rehman Virk & Yunjiang Geng & Marc Audi & Muhammad Saleem Ashraf, 2024. "Sustainability Disclosures and Their Influence on Cost of Capital: A Comprehensive Bibliometric Study," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 799-810.
    • Handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:799-810
    DOI: https://doi.org/10.61506/01.00395
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/909/938
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/909
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.61506/01.00395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Omrane Guedhami & Jeffrey A. Pittman & Walid Saffar, 2014. "Auditor Choice in Politically Connected Firms," Journal of Accounting Research, Wiley Blackwell, vol. 52(1), pages 107-162, March.
    2. Stephen B. Billings & Jonah Rockoff, 2014. "School Segregation, Educational Attainment, and Crime: Evidence from the End of Busing in Charlotte-Mecklenburg," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 435-476.
    3. van Eck, Nees Jan & Waltman, Ludo, 2014. "CitNetExplorer: A new software tool for analyzing and visualizing citation networks," Journal of Informetrics, Elsevier, vol. 8(4), pages 802-823.
    4. Yoshinori Shimada, 2020. "Voluntary disclosure of investment forecasts and the cost of capital: evidence from the treatment effect estimates model," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 27(4), pages 472-489, July.
    5. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    6. Edward B. Barbier & Joanne C. Burgess, 2018. "Policies to support environmental risk management in investment decisions," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 17(2/3), pages 117-129.
    7. Ajay Adhikari & Haiyan Zhou, 2021. "Voluntary disclosure and information asymmetry: do investors in US capital markets care about carbon emission?," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(1), pages 195-220, August.
    8. Luzi Hail, 2002. "The impact of voluntary corporate disclosures on the ex-ante cost of capital for Swiss firms," European Accounting Review, Taylor & Francis Journals, vol. 11(4), pages 741-773.
    9. Jakob Thomä & Kyra Gibhardt, 2019. "Quantifying the potential impact of a green supporting factor or brown penalty on European banks and lending," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 27(3), pages 380-394, May.
    10. Jill Brown & William Forster, 2013. "CSR and Stakeholder Theory: A Tale of Adam Smith," Journal of Business Ethics, Springer, vol. 112(2), pages 301-312, January.
    11. Ilker Yilmaz, 2022. "ESG-Based Sustainability Performance and its Impact on Cost of Capital: International Evidence from the Energy Sector," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 12(2), pages 21-30.
    12. Yinian Gu, 2004. "Global knowledge management research: A bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 61(2), pages 171-190, October.
    13. Adam Lindgreen & José-Rodrigo Córdoba, 2010. "Editorial: Corporate Social Responsibility in Latin America," Journal of Business Ethics, Springer, vol. 91(2), pages 167-170, February.
    14. María‐Florencia Amorelli & Isabel‐María García‐Sánchez, 2021. "Trends in the dynamic evolution of board gender diversity and corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 537-554, March.
    15. Zahra Borghei, 2021. "Carbon disclosure: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5255-5280, December.
    16. Muhammad Farooq & Amna Noor, 2021. "The impact of corporate social responsibility on financial distress: evidence from developing economy," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 33(3), pages 376-396, June.
    17. Tesfaye T. Lemma & Martin Feedman & Mthokozisi Mlilo & Jin Dong Park, 2019. "Corporate carbon risk, voluntary disclosure, and cost of capital: South African evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 111-126, January.
    18. Carsten Albers & Thomas Günther, 2010. "Disclose or not disclose: determinants of social reporting for STOXX Europe 600 firms," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 21(3), pages 323-347, November.
    19. Shaomin Li & Marc Fetscherin & Ilan Alon & Christoph Lattemann & Kuang Yeh, 2010. "Corporate Social Responsibility in Emerging Markets," Management International Review, Springer, vol. 50(5), pages 635-654, October.
    20. Becken, S. & Simmons, D., 2008. "Using the concept of yield to assess the sustainability of different tourist types," Ecological Economics, Elsevier, vol. 67(3), pages 420-429, October.
    21. Maria Goranova & Todd M. Alessandri & Pamela Brandes & Ravi Dharwadkar, 2007. "Managerial ownership and corporate diversification: a longitudinal view," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 211-225, March.
    22. Audi, Marc, 2024. "A Discussion on the Role of International Regimes in Mitigating Global Warming and Climate Change," MPRA Paper 121586, University Library of Munich, Germany.
    23. Megumi Suto & Hitoshi Takehara, 2017. "CSR and cost of capital: evidence from Japan," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(4), pages 798-816, October.
    24. Batten, Jonathan A. & Kinateder, Harald & Szilagyi, Peter G. & Wagner, Niklas F., 2021. "Hedging stocks with oil," Energy Economics, Elsevier, vol. 93(C).
    25. Goss, Allen & Roberts, Gordon S., 2011. "The impact of corporate social responsibility on the cost of bank loans," Journal of Banking & Finance, Elsevier, vol. 35(7), pages 1794-1810, July.
    26. Domenico Morrone & Rosamartina Schena & Danilo Conte & Candida Bussoli & Angeloantonio Russo, 2022. "Between saying and doing, in the end there is the cost of capital: Evidence from the energy sector," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 390-402, January.
    27. Armitage, Seth & Marston, Claire, 2008. "Corporate disclosure, cost of capital and reputation: Evidence from finance directors," The British Accounting Review, Elsevier, vol. 40(4), pages 314-336.
    28. Cynthia Weiyi Cai, 2023. "A real effect across time: disclosure quality, cost of capital and profitability," Journal of Accounting Literature, Emerald Group Publishing Limited, vol. 45(1), pages 154-189, January.
    29. Igor Filatotchev & Xiaohui Liu & Trevor Buck & Mike Wright, 2009. "The export orientation and export performance of high-technology SMEs in emerging markets: The effects of knowledge transfer by returnee entrepreneurs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(6), pages 1005-1021, August.
    30. Hussain, Emtiaz & Hasan, Mahmudul & Rahman, Md Anisur & Lee, Ickjai & Tamanna, Tasmi & Parvez, Mohammad Zavid, 2021. "CoroDet: A deep learning based classification for COVID-19 detection using chest X-ray images," Chaos, Solitons & Fractals, Elsevier, vol. 142(C).
    31. Richard P. Gregory & Jean Garner Stead & Edward Stead, 2021. "The global pricing of environmental, social, and governance (ESG) criteria," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 11(4), pages 310-329, October.
    32. Wang, Fangjun & Sun, Junqin & Liu, Yang Stephanie, 2019. "Institutional pressure, ultimate ownership, and corporate carbon reduction engagement: Evidence from China," Journal of Business Research, Elsevier, vol. 104(C), pages 14-26.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laura Corazza & Simone Domenico Scagnelli & Chiara Mio, 2017. "Simulacra and Sustainability Disclosure: Analysis of the Interpretative Models of Creating Shared Value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(5), pages 414-434, September.
    2. Katharina Hetze, 2016. "Effects on the (CSR) Reputation: CSR Reporting Discussed in the Light of Signalling and Stakeholder Perception Theories," Corporate Reputation Review, Palgrave Macmillan, vol. 19(3), pages 281-296, October.
    3. Naciye Sekerci & Jamil Jaballah & Marc van Essen & Nadine Kammerlander, 2022. "Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility," Entrepreneurship Theory and Practice, , vol. 46(1), pages 82-116, January.
    4. Rashidi-Sabet, Siavash & Madhavaram, Sreedhar & Parvatiyar, Atul, 2022. "Strategic solutions for the climate change social dilemma: An integrative taxonomy, a systematic review, and research agenda," Journal of Business Research, Elsevier, vol. 146(C), pages 619-635.
    5. La Rosa, Fabio & Liberatore, Giovanni & Mazzi, Francesco & Terzani, Simone, 2018. "The impact of corporate social performance on the cost of debt and access to debt financing for listed European non-financial firms," European Management Journal, Elsevier, vol. 36(4), pages 519-529.
    6. Mühlbacher, Hans & Böbel, Ingo, 2019. "From zero-sum to win-win - Organisational conditions for successful shared value strategy implementation," European Management Journal, Elsevier, vol. 37(3), pages 313-324.
    7. Milena Nedeljković Knežević & Marko D. Petrović & Slađana Nedeljković & Maja Mijatov & Milan M. Radovanović & Mirjana Gajić & Miroslav Škoda, 2019. "Changes in Traditional Activities of Industrial Area toward Sustainable Tourism Development," Sustainability, MDPI, vol. 11(22), pages 1-16, November.
    8. Meles, Antonio & Salerno, Dario & Sampagnaro, Gabriele & Verdoliva, Vincenzo & Zhang, Jianing, 2023. "The influence of green innovation on default risk: Evidence from Europe," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 692-710.
    9. Marcelo Royo-Vela & Jonathan Cuevas Lizama, 2022. "Creating Shared Value: Exploration in an Entrepreneurial Ecosystem," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    10. Tian Luan, 2024. "A Review of Corporate Social Responsibility Decoupling and Its Impact: Evidence from China," Sustainability, MDPI, vol. 16(10), pages 1-17, May.
    11. Victoria Bogdan & Claudia Diana Sabău-Popa & Marcel-Ioan Boloș & Dorina-Nicoleta Popa & Mărioara Beleneși, 2022. "Tracking Waste Management Information Disclosure Behavior Connected to Financial Performance through Moderating Variables," IJERPH, MDPI, vol. 19(20), pages 1-25, October.
    12. Li, WeiWei & Padmanabhan, Prasad & Huang, Chia-Hsing, 2024. "ESG and debt structure: Is the nature of this relationship nonlinear?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    13. Liu, Chengyun & Su, Kun & Zhang, Miaomiao, 2021. "Water disclosure and financial reporting quality for social changes: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    14. Prasad, Krishna & Kumar, Satish & Devji, Shridev & Lim, Weng Marc & Prabhu, Nandan & Moodbidri, Sudhir, 2022. "Corporate social responsibility and cost of capital: The moderating role of policy intervention," Research in International Business and Finance, Elsevier, vol. 60(C).
    15. Tahir Farid & Sadaf Iqbal & Jianhong Ma & Sandra Castro-González & Amira Khattak & Muhammad Khalil Khan, 2019. "Employees’ Perceptions of CSR, Work Engagement, and Organizational Citizenship Behavior: The Mediating Effects of Organizational Justice," IJERPH, MDPI, vol. 16(10), pages 1-16, May.
    16. Cristian R. Loza Adaui, 2020. "Sustainability Reporting Quality of Peruvian Listed Companies and the Impact of Regulatory Requirements of Sustainability Disclosures," Sustainability, MDPI, vol. 12(3), pages 1-22, February.
    17. Schwartz, Demitrius & Batabyal, Amitrajeet, 2023. "The Decision to Install a Rooftop Photovoltaic System by a Small Business: A Case Study," MPRA Paper 120361, University Library of Munich, Germany, revised 01 Mar 2024.
    18. Faiza Manzoor & Longbao Wei & Mohammad Nurunnabi & Qazi Abdul Subhan & Syed Irshad Ali Shah & Samaher Fallatah, 2019. "The Impact of Transformational Leadership on Job Performance and CSR as Mediator in SMEs," Sustainability, MDPI, vol. 11(2), pages 1-14, January.
    19. Dan Li & Li-Qun Wei & Qing Cao & Deqiu Chen, 2022. "Informal institutions, entrepreneurs’ political participation, and venture internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1062-1090, August.
    20. Wells, Victoria K. & Manika, Danae & Gregory-Smith, Diana & Taheri, Babak & McCowlen, Clair, 2015. "Heritage tourism, CSR and the role of employee environmental behaviour," Tourism Management, Elsevier, vol. 48(C), pages 399-413.

    More about this item

    Keywords

    corporate social responsibility; sustainability; cost of capital;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:799-810. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.