Environmental and Social Policy and Earning Persistence. (1st June 2012)

• Record Type: Journal Article
• Authors: Mahjoub, Lassaad Ben; Khamoussi, Halioui
• Is Part Of: Business strategy and the environment. Volume 22:Number 3(2013)
• Page Start: 159
• Page End: 172
• Publication Date: 2012-06-01
• Subjects: Industrial management -- Environmental aspects -- Periodicals; Industries -- Environmental aspects -- Periodicals; 658.4083
• DOI: 10.1002/bse.1739
• Languages: English
• ISSNs: 0964-4733

Abstract

<abstract abstract-type="main"> <title>ABSTRACT</title> <p>In recent years, the effect of disclosure on environmental and social information has been the subject of much research in an Anglo‐Saxon context. The European field, and especially the French companies, have not been sufficiently discussed.</p> <p>In this paper, we investigate the relationship between social and environmental disclosure and earning persistence (as a proxy of earning quality). We use the content analysis method with annual reports as a measure of social and environmental disclosure; the empirical validation is applied to the companies listed in the SBF 250 French stock market index over the 2005–2010 period. To measure earning persistence we opt for a regression of a time‐series model on panel data. The findings show that French companies are characterized by a high level of social and environmental reporting; this situation may affect positively the quality of earnings such as more persistent earnings. This means that companies with a higher level of social and environmental commitment are more likely to take benefits and to communicate more persistent earnings and be desirable to investors. Copyright © 2012 John Wiley &amp; Sons, Ltd and ERP Environment.</p> </abstract>