Empirical analysis on corporate environmental performance and environmental disclosure in an emerging market context Socio-political theories versus economics disclosure theories

Purpose The purpose of this study is to investigate the association between environmental performance of firms and the level of voluntary environmental disclosure in emerging markets. Design/methodology/approach We used tobit regression OLS and t-test methods to reveal the association between environmental performance and the level of voluntary environmental disclosure. Findings We find a significant positive association between the level of discretionary environmental disclosures and corporate environmental performance. The result is in line with the arguments of economics disclosure theory that argues environmentally good performers disclose more. Originality/value This study shed light on relation between environmental performance and environmental disclosure in an emerging market context. Also, it is revisited that the relation between environmental performance and the level of environmental disclosure by testing two different predictions on the level of environmental disclosures.