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Article
Publication date: 11 August 2021

Geoffrey Injeni, Musa Mangena, David Mathuva and Robert Mudida

This paper aims to examine the factors influencing the level of disclosures of sustainability (SR) and integrated report (IR) information in a developing country context, with…

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Abstract

Purpose

This paper aims to examine the factors influencing the level of disclosures of sustainability (SR) and integrated report (IR) information in a developing country context, with particular reference to Kenya.

Design/methodology/approach

The study uses a panel data set of 419 firm-year observations of listed companies in Kenya covering the period 2010 through 2018. Data are collected from the annual reports and analysed using a generalized estimations equation model.

Findings

The results reveal that there is momentum towards newer reporting frameworks in Kenya with substantial IR and SR disclosures in their annual reports. The results also show that level of SR and IR disclosures is influenced by both agency-related factors (board gender diversity, audit committee independence, block ownership and the presence of foreign ownership). Additionally, institutional-related factors (regulatory pressure and promotional efforts of regulatory and professional bodies [reporting excellence awards]) influence the disclosures.

Practical implications

The results highlight that initiatives such as those led by the regulatory and professional bodies in Kenya are effective in motivating companies to enhance disclosures. Thus, regulators and professional bodies might need to continue and even intensify their efforts. These results have implications for further research as they show that SR and IR disclosures are influenced by similar factors.

Social implications

The study has the potential to contribute to the ongoing initiatives and discussions on the adoption of IR by firms in Africa as spearheaded by the African Integrated Reporting Council.

Originality/value

To the best of the knowledge, the study is, perhaps, the first to examine both SR and IR disclosures at the same study allowing comparison of the extent and drivers of the two disclosures. Moreover, examining the institutional-related factors in a single country has not been done in prior literature, and so this is an innovation.

Details

Journal of Financial Reporting and Accounting, vol. 20 no. 5
Type: Research Article
ISSN: 1985-2517

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Book part
Publication date: 22 October 2019

David Mutua Mathuva, Mumbi Maria Wachira and Geoffrey Ikavulu Injeni

In this chapter, we examine whether corporate environmental reporting (CER) by listed companies in Kenya improves stock liquidity. The investigation is motivated by the growing…

Abstract

Purpose

In this chapter, we examine whether corporate environmental reporting (CER) by listed companies in Kenya improves stock liquidity. The investigation is motivated by the growing interest by corporations, investors, and regulators toward embracing ecological protection with a view to creating sustainable societies for the future.

Design/Methodology/Approach

Using a panel dataset comprising of 244 firm-year observations from 50 listed firms in Kenya over a five-year period (2011 to 2015), we perform fixed-effects regressions to discern whether CER is associated with stock liquidity. To examine this, we utilize bid-ask (as well as quoted) spreads measured over month −9 to month +3 relative to a firm’s year end.

Findings

Despite the seemingly low levels of CER across firms in the sample (average: 32.6%), the results depict that CER is positively associated with stock liquidity. The results are robust even when we consider changes in bid-ask spreads and CER together with the other variables. The same results emerge when we study the association between bid-ask spreads and each CER item at a time over the period 2011–2015.

Practical Implications

The results imply that listed companies in Kenya that engage in higher CER seem to be more attractive to investors. The higher CER seems to improve the information environment, hence reducing information asymmetry and therefore attracting investors. The results provide some evidence of positive economic consequences of engaging in additional disclosure over and above the traditional corporate financial reporting.

Originality/Value

The study adds onto the dearth of literature on the economic consequences of embracing additional disclosure frameworks in developing countries where the adoption of alternative reporting frameworks is at infancy.

Details

Environmental Reporting and Management in Africa
Type: Book
ISBN: 978-1-78973-373-0

Keywords

Available. Content available
Book part
Publication date: 22 October 2019

Abstract

Details

Environmental Reporting and Management in Africa
Type: Book
ISBN: 978-1-78973-373-0

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