ABSTRACT
Over the past three decades, a plethora of academic research has examined the impact of debt capital providers, proxied by leverage, on firms' sustainability reporting (SR) practices, indicating its relevance as a major determinant. Since the empirical literature remains inconclusive, we carried out the first comprehensive firm-level meta-analysis to reconcile the conflicting results from 112 studies involving 180 effect sizes across 32,953 firms spanning from 1989 to 2022. This provides a timely and up-to-date evaluation of the magnitude and nature of the engagement and influence of this significant stakeholder group on SR. Further, the study provides granular insights by dividing the overall effect on SR into three reporting dimensions-adoption, extent, and quality of reporting-to understand the impact of leverage on each and detail plausible reasons cited in the literature underpinning the positive or negative impact of debt providers on SR. The results show a positive significant impact of debt capital providers on SR, specifically, the adoption and extent of SR, but insignificant influence on SR quality, consistent with the findings of legitimacy theory. Debt capital providers' sustainability information needs remain limited to the "act" and "extent" of disclosure and concern for SR has not percolated to "ask for quality," indicative of a rather surface-level care for SR practices of firms. Regarding the strength of this stakeholder group and its funding power, greater activism, advocacy, and informational sensitivity are required to encourage firms to engage in meaningful SR practices. Subgroup analysis and meta-regression techniques were used to account for potential conceptual and study-based moderators. Significant discrepancies were observed due to differences in content of reported issues, type of firm, leverage proxies, the sample period, and publication quality. The study emphasizes the need for proactive measures among debt capital providers to counteract the limited positive impact of leverage on sustainability reporting. By identifying research gaps and exploring implications for debt providers and companies, this study highlights how ESG-sensitive lenders can potentially steer firms towards quality SR practices. It offers valuable insights that could inform policy changes, foster collaboration, and advance the practice of sustainability-oriented lending.
Subject(s)
Disclosure , OrganizationsABSTRACT
The growing relevance of sustainability reporting (SR) has dramatically surged advocacy and interest among both academicians and practitioners. However, few studies have attempted to holistically encapsulate global research on sustainability reporting. The present study employed scientometric analysis on sustainability reporting based 1434 articles extracted from the Web of Science database, published between 1992 and 2022, to comprehensively map the intellectual structure of this field. Domain visualizations were constructed using CiteSpace software to identify networks of co-authorship, keywords, subject categories, institutions, and countries engaged in publishing on SR along with co-citation and cluster analysis. The findings revealed that significant contributions in SR research have originated primarily from developed countries, underscoring the necessity for more research in the context of developing and emerging countries. SR field was found characterized by cohesive research sub-communities but lacked global cooperation. Existing studies in the SR research domain focused mainly on subject categories of business, management, environmental studies, green and sustainable science technology, environmental sciences, and business finance. Analysis of most co-cited authors and content analysis of highly co-cited articles were performed, detailing pioneer works in the field. The principal topics in the body of literature were identified via clusters of co-citations between documents and keywords. Future research focus areas include exploring the link between circular economy and SR, the role of social media, blockchain, artificial intelligence, and other digital technologies in SR, attention on the MSME sector, mandatory reporting, assessment of real impact of SR on investor sentiments and financial analysts' valuations, assurance, standardization, financial-sector inclusive research, materiality issues, and understanding niche themes of SR, inclusive of monothematic reporting. Implications of the study for policymakers, companies, society, and academia were examined.
ABSTRACT
Climate change and climate finance continue to attract substantial research interest in several dimensions and categories through COVID-19 breakout and resulting disruptions were crucial. An in-depth scientometric analysis was undertaken to gain concise insights on evolution and publication trends of this multi-dimensional field. Corpus of 657 articles, extracted from Web of Science from 1995 to 2020, were used to identify networks of co-authorship, keywords, subject categories, institutions, and countries engaged in publishing on climate finance along with co-citation and cluster analysis. Networks and interactive visualizations created using CiteSpace revealed new research areas where climate finance may be beneficial along with potential directions of development for climate finance discipline. We identify carbon neutrality, accounting for sustainability, planetary boundaries framework, sustainable finance, managing climate risk for third pole, financial innovation and green finance, green swans, COVID pandemic and corporate law and governance in climate finance as emerging domains of climate finance research, seeking overwhelming research attention globally.
