1,894
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Does stakeholder pressure influence firms environmental, social and governance (ESG) disclosure? Evidence from Ghana

, , &
Article: 2303790 | Received 09 Oct 2023, Accepted 04 Jan 2024, Published online: 05 Feb 2024

References

  • Abeysekera, I. (2022). A framework for sustainability reporting. Sustainability Accounting, Management and Policy Journal, 13(6), 1–22. https://doi.org/10.1108/SAMPJ-08-2021-0316
  • Aboagye‐Otchere, F. K., Simpson, S. N. Y., & Kusi, J. A. (2020). The influence of environmental performance on environmental disclosures: An empirical study in Ghana. Business Strategy & Development, 3(1), 98–111. https://doi.org/10.1002/bsd2.81
  • Agyemang, A., Yusheng, K., Kongkuah, M., Musah, A., & Musah, M. (2023a). Assessing the impact of environmental accounting disclosure on corporate performance in China. Environmental Engineering and Management Journal, 22(2), 389–397. https://doi.org/10.30638/eemj.2023.030
  • Agyemang, A. O., Yusheng, K., Twum, A. K., Ayamba, E. C., Kongkuah, M., & Musah, M. (2021). Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China. Environment, Development and Sustainability, 23(8), 12192–12216. https://doi.org/10.1007/s10668-020-01164-4
  • Agyemang, A. O., Yusheng, K., Twum, A. K., Edziah, B. K., & Ayamba, E. C. (2023b). Environmental accounting and performance: Empirical evidence from China. Environment, Development and Sustainability, 1–26. https://doi.org/10.1007/s10668-022-02853-y
  • Alatawi, I. A., Ntim, C. G., Zras, A., & Elmagrhi, M. H. (2023). CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda. International Review of Financial Analysis, 89, 102734. https://doi.org/10.1016/j.irfa.2023.102734
  • Alsahali, K. F., & Malagueño, R. (2022). An empirical study of sustainability reporting assurance: current trends and new insights. Journal of Accounting & Organizational Change, 18(5), 617–642. https://doi.org/10.1108/JAOC-05-2020-0060
  • Amoah, P., & Eweje, G. (2020). CSR in Ghana’s gold-mining sector: Assessing expectations and perceptions of performance with institutional and stakeholder lenses. Social Business, 10(4), 339–363. https://doi.org/10.1362/204440820X15929907056661
  • Amoako, K. O., Amoako, I. O., Tuffour, J., & Marfo, E. O. (2022). Formal and informal sustainability reporting: An insight from a mining company’s subsidiary in Ghana. Journal of Financial Reporting and Accounting, 20(5), 897–925. https://doi.org/10.1108/JFRA-12-2020-0368
  • Anaman, P. D., Dzakah, G. A., Anyass, I., Ahmed, O. N., & Somiah-Quaw, F. (n.d.). Understanding Ghanaian banks’ views on the influence of ESG Reporting on their financial performance.
  • Annan, B. A. (2023). Environmental social governance; The new age of corporate governance in Ghana. The New Age of Corporate Governance in Ghana (May 4, 2023). http://dx.doi.org/10.2139/ssrn.4438349
  • Appiah-Konadu, P., Apetorgbor, V. K., & Atanya, O. (2022). Non-financial reporting regulation and the state of sustainability disclosure among banks in Sub-Saharan Africa (SSA): A literature review on banks in Ghana and Nigeria. Management and Leadership for a Sustainable Africa, Volume 2: Roles, Responsibilities, and Prospects, 2, 55–72.
  • Arthur, C. L., Wu, J., Yago, M., & Zhang, J. (2017). Investigating performance indicators disclosure in sustainability reports of large mining companies in Ghana. Corporate Governance: The International Journal of Business in Society, 17(4), 643–660. https://doi.org/10.1108/CG-05-2016-0124
  • Berrone, P., Fosfuri, A., Gelabert, L., & Gomez‐Mejia, L. R. (2013). Necessity as the mother of ‘green’inventions: Institutional pressures and environmental innovations. Strategic Management Journal, 34(8), 891–909. https://doi.org/10.1002/smj.2041
  • Cadez, S., & Czerny, A. (2016). Climate change mitigation strategies in carbon-intensive firms. Journal of Cleaner Production, 112, 4132–4143. https://doi.org/10.1016/j.jclepro.2015.07.099
  • Cadez, S., Czerny, A., & Letmathe, P. (2019). Stakeholder pressures and corporate climate change mitigation strategies. Business Strategy and the Environment, 28(1), 1–14. https://doi.org/10.1002/bse.2070
  • Cadez, S., & Guilding, C. (2017). Examining distinct carbon cost structures and climate change abatement strategies in CO2 polluting firms. Accounting, Auditing & Accountability Journal, 30(5), 1041–1064. https://doi.org/10.1108/AAAJ-03-2015-2009
  • Chege, S. M., & Wang, D. (2020). The influence of technology innovation on SME performance through environmental sustainability practices in Kenya. Technology in Society, 60, 101210. https://doi.org/10.1016/j.techsoc.2019.101210
  • Chithambo, L., Tauringana, V., Tingbani, I., & Achiro, L. (2022). Stakeholder pressure and greenhouses gas voluntary disclosures. Business Strategy and the Environment, 31(1), 159–172. https://doi.org/10.1016/j.techsoc.2019.101210
  • Chu, Z., Wang, L., & Lai, F. (2019). Customer pressure and green innovations at third party logistics providers in China: The moderation effect of organizational culture. The International Journal of Logistics Management, 30(1), 57–75. https://doi.org/10.1108/IJLM-11-2017-0294
  • Cicchiello, A. F., Marrazza, F., & Perdichizzi, S. (2023). Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms. Corporate Social Responsibility and Environmental Management, 30(3), 1121–1128. https://doi.org/10.1002/csr.2408
  • Dhanda, K. K., Sarkis, J., & Dhavale, D. G. (2022). Institutional and stakeholder effects on carbon mitigation strategies. Business Strategy and the Environment, 31(3), 782–795. https://doi.org/10.1002/bse.2917
  • Dissanayake, D., Tilt, C., & Qian, W. (2019). Factors influencing sustainability reporting by Sri Lankan companies. Pacific Accounting Review, 31(1), 84–109. https://doi.org/10.1108/PAR-10-2017-0085
  • Eryadi, V. U., Wahyudi, I., & Jumaili, S. (2021 Pengaruh Kepemilikan Institusional, Kepemilikan Mayoritas, Kepemilikan Pemerintah, dan Profitabilitas Terhadap Sustainability Reporting Assurance. Conference on Economic and Business Innovation (CEBI),
  • Esfahbodi, A., Zhang, Y., Watson, G., & Zhang, T. (2017). Governance pressures and performance outcomes of sustainable supply chain management–An empirical analysis of UK manufacturing industry. Journal of Cleaner Production, 155, 66–78. https://doi.org/10.1016/j.jclepro.2016.07.098
  • Esposito De Falco, S., Scandurra, G., & Thomas, A. (2021). How stakeholders affect the pursuit of the Environmental, Social, and Governance. Evidence from innovative small and medium enterprises. Corporate Social Responsibility and Environmental Management, 28(5), 1528–1539. https://doi.org/10.1002/csr.2183
  • Famiyeh, S., Opoku, R. A., Kwarteng, A., & Asante-Darko, D. (2021). Driving forces of sustainability in the mining industry: Evidence from a developing country. Resources Policy, 70, 101910. https://doi.org/10.1016/j.resourpol.2020.101910
  • Faseyi, C. A., Miyittah, M. K., & Yafetto, L. (2023). Assessment of environmental degradation in two coastal communities of Ghana using Driver Pressure State Impact Response (DPSIR) framework. Journal of Environmental Management, 342, 118224. https://doi.org/10.1016/j.jenvman.2023.118224
  • Fernandez-Feijoo, B., Romero, S., & Ruiz, S. (2014). Effect of stakeholders’ pressure on transparency of sustainability reports within the GRI framework. Journal of Business Ethics, 122(1), 53–63. https://doi.org/10.1007/s10551-013-1748-5
  • Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Sage Publications.
  • Freeman, R. E. (1984). Strategic management: A stakeholder perspective Boston: Piman. Harper and Row.
  • Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A stakeholder theory perspective on business models: Value creation for sustainability. Journal of Business Ethics, 166(1), 3–18. https://doi.org/10.1007/s10551-019-04112-z
  • Gong, M., Gao, Y., Koh, L., Sutcliffe, C., & Cullen, J. (2019). The role of customer awareness in promoting firm sustainability and sustainable supply chain management. International Journal of Production Economics, 217, 88–96.
  • Hair, J. F. Jr, (2020). Next-generation prediction metrics for composite-based PLS-SEM. Industrial Management & Data Systems, 121(1), 5–11. https://doi.org/10.1108/IMDS-08-2020-0505
  • Hair, J. F., Black, W. C., & Babin, B. J. (2010). RE Anderson Multivariate data analysis: A global perspective. Pearson Prentice Hall.
  • Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature.
  • Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
  • Hair, J. F., Jr, Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128
  • Herold, D. M. (2018). Demystifying the link between institutional theory and stakeholder theory in sustainability reporting. Economics, Management and Sustainability, 3(2), 6–19. https://doi.org/10.14254/jems.2018.3-2.1
  • Higgins, C., Tang, S., & Stubbs, W. (2020). On managing hypocrisy: The transparency of sustainability reports. Journal of Business Research, 114, 395–407. https://doi.org/10.1016/j.jbusres.2019.08.041
  • Imperiale, F., Pizzi, S., & Lippolis, S. (2023). Sustainability reporting and ESG performance in the utilities sector. Utilities Policy, 80, 101468. https://doi.org/10.1016/j.jup.2022.101468
  • Jahid, M. A., Yaya, R., Pratolo, S., & Pribadi, F. (2023). Institutional factors and CSR reporting in a developing country: Evidence from the neo-institutional perspective. Cogent Business & Management, 10(1), 2184227. https://doi.org/10.1080/23311975.2023.2184227
  • Jayaraman, K., Jayashree, S., & Dorasamy, M. (2023). The effects of green innovations in organizations: Influence of stakeholders. Sustainability, 15(2), 1133. https://doi.org/10.3390/su15021133
  • Kammerer, D. (2009). The effects of customer benefit and regulation on environmental product innovation.: Empirical evidence from appliance manufacturers in Germany. Ecological Economics, 68(8-9), 2285–2295. https://doi.org/10.1016/j.ecolecon.2009.02.016
  • Kaur, R. (2021). Impact of financial distress, CEO power and compensation on environment, social and governance (ESG) performance: Evidence-based on UK firms.
  • Kılıç, M., Uyar, A., Kuzey, C., & Karaman, A. S. (2021). Does institutional theory explain integrated reporting adoption of Fortune 500 companies? Journal of Applied Accounting Research, 22(1), 114–137. https://doi.org/10.1108/JAAR-04-2020-0068
  • Krasodomska, J., & Zarzycka, E. (2021). Key performance indicators disclosure in the context of the EU directive: When does stakeholder pressure matter? Meditari Accountancy Research, 29(7), 1–30. https://doi.org/10.1108/MEDAR-05-2020-0876
  • Lee, J. W., Kim, Y. M., & Kim, Y. E. (2018). Antecedents of adopting corporate environmental responsibility and green practices. Journal of Business Ethics, 148(2), 397–409. https://doi.org/10.1007/s10551-016-3024-y
  • Lestari, E., Dania, W., Indriani, C., & Firdausyi, I. (2021). The impact of customer pressure and the environmental regulation on green innovation performance. IOP Conference Series: Earth and Environmental Science, 733(1), 012048. https://doi.org/10.1088/1755-1315/733/1/012048
  • Li, D., Huang, M., Ren, S., Chen, X., & Ning, L. (2018). Environmental legitimacy, green innovation, and corporate carbon disclosure: Evidence from CDP China 100. Journal of Business Ethics, 150(4), 1089–1104. https://doi.org/10.1007/s10551-016-3187-6
  • Liesen, A., Hoepner, A. G., Patten, D. M., & Figge, F. (2015). Does stakeholder pressure influence corporate GHG emissions reporting? Empirical evidence from Europe. Accounting, Auditing & Accountability Journal, 28(7), 1047–1074. https://doi.org/10.1108/AAAJ-12-2013-1547
  • Lin, C.-Y., & Ho, Y.-H. (2011). Determinants of green practice adoption for logistics companies in China. Journal of Business Ethics, 98(1), 67–83. https://doi.org/10.1007/s10551-010-0535-9
  • Lulu, C. L. (2021). Stakeholder pressure and the quality of sustainability report: Evidence From Indonesia. Journal of Accounting, Entrepreneurship and Financial Technology (Jaef), 2(1), 53–72. https://doi.org/10.37715/jaef.v2i1.1864
  • Maama, H., & Mkhize, M. (2020). Integrated reporting practice in a developing country—Ghana: Legitimacy or stakeholder oriented? International Journal of Disclosure and Governance, 17(4), 230–244. https://doi.org/10.1057/s41310-020-00092-z
  • Menassa, E., & Dagher, N. (2020). Determinants of corporate social responsibility disclosures of UAE national banks: A multi-perspective approach. Social Responsibility Journal, 16(5), 631–654. https://doi.org/10.1108/SRJ-09-2017-0191
  • Mensah, E., Frimpong, K., & Maama, H. (2017). Environmental reporting practices by listed manufacturing firms: The perspective of an emerging economy. Asian Journal of Economics, Business and Accounting, 2(3), 1–12. https://doi.org/10.9734/AJEBA/2017/32817
  • Mooneeapen, O., Abhayawansa, S., & Mamode Khan, N. (2022). The influence of the country governance environment on corporate environmental, social and governance (ESG) performance. Sustainability Accounting, Management and Policy Journal, 13(4), 953–985. https://doi.org/10.1108/SAMPJ-07-2021-0298
  • Mukhtar, B., Shad, M. K., Won, L. F., Waqas, A., & Mukhtar, Z. (2023). role of green technology innovation to promote sustainability performance in Malaysian manufacturing solar PV industry: A conceptual framework. Platform: A Journal of Management and Humanities, 6(1), 36–46.
  • Orazalin, N. S., Ntim, C. G., & Malagila, J. K. (2023). Board sustainability committees, climate change initiatives, carbon performance, and market value. British Journal of Management, 35(1), 295–320. https://doi.org/10.1111/1467-8551.12715
  • Osei, A., Osei Agyemang, A., Amoah, J., & Sulemana, I. (2023). Empirical study on the impact of working capital management on going concern of manufacturing firms in Ghana. Cogent Business & Management, 10(2), 2218177. https://doi.org/10.1080/23311975.2023.2218177
  • Osei, A. A., Yusheng, K., Caesar, E. A., Kissiwaa, A. T., & Shaibu, A. (2019). Impact of board characteristics on corporate social responsibility disclosure in Ghana. International Journal of Sciences: Basic and Applied Research, 46(1), 104–116.
  • Otitolaiye, E. D., Siyanbola, T. T., & Nwaobia, A. N. (2023). Sustainability reporting and capital adequacy of listed DMBs in Ghana, 7(6), 212–227.
  • Posadas, S. C., Ruiz-Blanco, S., Fernandez-Feijoo, B., & Tarquinio, L. (2023). Institutional isomorphism under the test of non-financial reporting directive. Evidence from Italy and Spain. Meditari Accountancy Research, 31(7), 26–48. https://doi.org/10.1108/MEDAR-02-2022-1606
  • Raihan, A. (2023). Toward sustainable and green development in Chile: Dynamic influences of carbon emission reduction variables. Innovation and Green Development, 2(2), 100038. https://doi.org/10.1016/j.igd.2023.100038
  • Ramadhini, A., Adhariani, D., & Djakman, C. D. (2020). The effects of external stakeholder pressure on CSR disclosure: Evidence from Indonesia. DLSU Business and Economics Review, 29(2), 29–39.
  • Raub, S. P., & Martin-Rios, C. (2019). “Think sustainable, act local”–A stakeholder-filter-model for translating SDGs into sustainability initiatives with local impact. International Journal of Contemporary Hospitality Management, ahead-of-print(ahead-of-print), 2428–2447. https://doi.org/10.1108/IJCHM-06-2018-0453
  • Rudyanto, A., & Veronica Siregar, S. (2018). The effect of stakeholder pressure and corporate governance on the sustainability report quality. International Journal of Ethics and Systems, 34(2), 233–249. https://doi.org/10.1108/IJOES-05-2017-0071
  • Rui, Z., & Lu, Y. (2021). Stakeholder pressure, corporate environmental ethics and green innovation. Asian Journal of Technology Innovation, 29(1), 70–86. https://doi.org/10.1080/19761597.2020.1783563
  • Sahoo, M. (2019). Structural equation modeling: Threshold criteria for assessing model fit. In Methodological issues in management research: Advances, challenges, and the way ahead. Emerald Publishing Limited.
  • Sanchez-Planelles, J., Segarra-Oña, M., & Peiro-Signes, A. (2020). Building a theoretical framework for corporate sustainability. Sustainability, 13(1), 273. https://doi.org/10.3390/su13010273
  • Sare, Y. A., Agyemang, A. O., Ayamba, E. C., Bawuah, B., & Gyaawa Koranteng, A. (2023). Insurance and sectorial growth nexus: Evidence from a developing economy. Cogent Economics & Finance, 11(2), 2228096. https://doi.org/10.1080/23322039.2023.2228096
  • Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28(2), 163–176. https://doi.org/10.1016/j.jom.2009.10.001
  • Sarstedt, M., Hair, J. F., Jr, Cheah, J.-H., Becker, J.-M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197–211. https://doi.org/10.1016/j.ausmj.2019.05.003
  • Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In Handbook of market research, (pp. 587–632). Springer.
  • Seroka-Stolka, O. (2023). Enhancing environmental sustainability: Stakeholder pressure and corporate CO2-related performance—An examination of the mediating and moderating effects of corporate decarbonization strategies. Sustainability, 15(19), 14257. https://doi.org/10.3390/su151914257
  • Simoni, L., Bini, L., & Bellucci, M. (2020). Effects of social, environmental, and institutional factors on sustainability report assurance: Evidence from European countries. Meditari Accountancy Research, 28(6), 1059–1087. https://doi.org/10.1108/MEDAR-03-2019-0462
  • Simpson, S. N. Y., Aboagye-Otchere, F., & Ahadzie, R. (2022). Assurance of environmental, social and governance disclosures in a developing country: Perspectives of regulators and quasi-regulators. Accounting Forum, 46(2), 109–133. https://doi.org/10.1080/01559982.2021.1927481
  • Singh, S. K., Del Giudice, M., Chiappetta Jabbour, C. J., Latan, H., & Sohal, A. S. (2022). Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities. Business Strategy and the Environment, 31(1), 500–514. https://doi.org/10.1002/bse.2906
  • Talbot, D., Raineri, N., & Daou, A. (2021). Implementation of sustainability management tools: The contribution of awareness, external pressures, and stakeholder consultation. Corporate Social Responsibility and Environmental Management, 28(1), 71–81. https://doi.org/10.1002/csr.2033
  • Tetteh, L. A., Agyenim‐Boateng, C., & Simpson, S. N. Y. (2024). Institutional pressures and accountability processes in pursuit of sustainable development goals: Insights from Ghanaian indigenous oil companies. Corporate Social Responsibility and Environmental Management, 31(1), 89–107.
  • Thomas, A., Scandurra, G., & Carfora, A. (2022). Adoption of green innovations by SMEs: An investigation about the influence of stakeholders. European Journal of Innovation Management, 25(6), 44–63. https://doi.org/10.1108/EJIM-07-2020-0292
  • Tian, H., & Tian, J. (2021). The mediating role of responsible innovation in the relationship between stakeholder pressure and corporate sustainability performance in times of crisis: Evidence from selected regions in China. International Journal of Environmental Research and Public Health, 18(14), 7277. https://doi.org/10.3390/ijerph18147277
  • Tran, M., & Beddewela, E. (2020). Does context matter for sustainability disclosure? Institutional factors in Southeast Asia. Business Ethics: A European Review, 29(2), 282–302. https://doi.org/10.1111/beer.12265
  • Truant, E., Corazza, L., & Scagnelli, S. D. (2017). Sustainability and risk disclosure: An exploratory study on sustainability reports. Sustainability, 9(4), 636. https://doi.org/10.3390/su9040636
  • Vitolla, F., Raimo, N., Rubino, M., & Garzoni, A. (2019). How pressure from stakeholders affects integrated reporting quality. Corporate Social Responsibility and Environmental Management, 26(6), 1591–1606. https://doi.org/10.1002/csr.1850
  • Wang, L., Long, Y., & Li, C. (2022). Research on the impact mechanism of heterogeneous environmental regulation on enterprise green technology innovation. Journal of Environmental Management, 322, 116127. https://doi.org/10.1016/j.jenvman.2022.116127
  • Welbeck, E. E. (2017). The influence of institutional environment on corporate responsibility disclosures in Ghana. Meditari Accountancy Research, 25(2), 216–240. https://doi.org/10.1108/MEDAR-11-2016-0092
  • Wen, K., Agyemang, A., Alessa, N., Sulemana, I., & Osei, A. (2023). The moderating role of ownership concentration on financing decisions and firm’s sustainability: Evidence from China. Sustainability, 15(18), 13385. https://doi.org/10.3390/su151813385
  • Wiredu, I., Osei Agyemang, A., & Agbadzidah, S. Y. (2023). Does green accounting influences ecological sustainability? Evidence from a developing economy. Cogent Business & Management, 10(2), 2240559. https://doi.org/10.1080/23311975.2023.2240559
  • Xu, X., Imran, M., Ayaz, M., & Lohana, S. (2022). The mediating role of green technology innovation with corporate social responsibility, firm financial, and environmental performance: The case of Chinese manufacturing industries. Sustainability, 14(24), 16951. https://doi.org/10.3390/su142416951
  • Zhang, H., He, J., Shi, X., Hong, Q., Bao, J., & Xue, S. (2020). Technology characteristics, stakeholder pressure, social influence, and green innovation: Empirical evidence from Chinese express companies. Sustainability, 12(7), 2891. https://doi.org/10.3390/su12072891
  • Zhang, F., & Zhu, L. (2019). Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation. Business Strategy and the Environment, 28(6), 1012–1026. https://doi.org/10.1002/bse.2298
  • Zhou, Y., Agyemang, A. O., Adam, I. O., & Twum, A. K. (2022). Assessing the impact of technological innovation on environmental and financial performance of Chinese textile manufacturing companies. International Journal of Technology, Policy and Management, 22(4), 369–393. https://doi.org/10.1504/IJTPM.2022.126152