The Impact of Environmental and Social Disclosure on Earnings Persistence

Authors

  • Thai Van Ha
  • Amena Sibghatullah
  • Sang Soo Chae
  • Talla M. Aldeehani

Abstract

This paper investigates the relationship between environmental and social disclosure with earnings persistence as a proxy of earnings quality. This research is based on the secondary data obtained from the final reports of the listed firms of Malaysia. The empirical analysis applied on 136 listed firms of Bursa Malaysia throughout 2011 to 2018 with the observation of 1088. The measure of earnings persistence is derived from the panel data based on the regression of the time series model. The results of our study indicate that environmental and social disclosures are positively correlated with earnings persistence. This means that the more the level of commitment a firm shows with environmental and social responsibility, the more persistent earnings it carries. Moreover, earnings persistence is the proxy of earnings quality, and it is desirable by every investor.  

Keywords: Environmental Disclosure, Social Disclosure, Earnings

JEL Classification:  O13

DOI: https://doi.org/10.32479/ijeep.10625

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Published

2020-10-10

How to Cite

Ha, T. V., Sibghatullah, A., Chae, S. S., & Aldeehani, T. M. (2020). The Impact of Environmental and Social Disclosure on Earnings Persistence. International Journal of Energy Economics and Policy, 10(6), 690–696. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/10625

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