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The IUP Journal of Accounting Research and Audit Practices:
The Relationship Between Corporate Environmental Reporting Practices and Company Characteristics: Evidence from India
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This study investigates the extent of environmental information disclosure in the annual reports of companies listed on the stock Dollex-200, and tests whether there is any relationship between the amount of environmental disclosure index and company characteristics such as industry type, age, size, profitability, liquidity and leverage. By using a purposive sampling method, 90 Indian private listed companies were selected as of March 31, 2014. The findings indicate that 62% of the companies have environmental disclosure of 20 to 50% in their annual reports. The results of the study also indicate that industry type and size (total assets, profit after tax and net sales) of the company are positively affected by the extent of environmental information disclosure in annual reports. These results imply that larger companies disclose more environmental information than smaller companies. However, there is no significant relationship between the extent of environmental disclosure and other company characteristics such as market capitalization, age, profitability, liquidity and leverage.

 
 
 

Environmental reporting means incorporation of environmental issues into the annual reports of corporate entities. It denotes voluntary disclosures by corporate entities of the impacts of its activities on environment (Parmanik, 2002). Business organizations should contribute towards the development and protection of natural and environmental resources. Activities directed towards alleviating or preventing environmental deterioration, i.e., air, water and noise pollution, and conservation of scarce resources and the disposal of solid waste are included in the social performance of the companies.