Elmanaseer, M.I. orcid.org/0009-0006-3404-8821 and Gerged, A.M. orcid.org/0000-0001-6805-2737 (2025) How do institutional pressures reshape the association between corporate sustainability disclosure and firm value in emerging economies? The moderating role of the audit committee function. Business Strategy and the Environment. ISSN 0964-4733
Abstract
This study examines the influence of normative (e.g., voluntary sustainability reporting guidelines) and coercive (e.g., mandatory corporate governance [CG] requirements) pressures on the relationship between corporate sustainability disclosure (CSD) and financial performance (FP), focusing on the moderating role of audit committee characteristics. Using 1863 firm-year observations from 207 companies listed and unlisted on the Amman Stock Exchange (2014–2022), the study employs panel quantile regression and two-stage PQR to address endogeneity issues. Results show that CSD adoption increased after the 2018 sustainability guidelines, positively affecting FP. Audit committee size and independence strengthen the CSD–FP link, particularly after the 2017 CG reforms, indicating coercive pressures' role in enhancing governance. However, frequent audit committee meetings and technical expertise may weaken the CSD–FP relationship. The study emphasizes governance frameworks shaped by normative and coercive pressures as key to maximizing the financial benefits of sustainability disclosures for firms.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2025 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. http://creativecommons.org/licenses/by/4.0/ |
Keywords: | audit committee function; corporate governance reforms; corporate sustainability disclosure; financial performance; institutional pressures; sustainability reporting guidelines |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 23 May 2025 08:38 |
Last Modified: | 23 May 2025 08:38 |
Status: | Published online |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1002/bse.4340 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:227044 |