Value relevance of firms’ integral environmental performance: Evidence from Russia

We examine the value relevance of environmental disclosures using a unique firms’ integral environmental performance (IEP) measure in Russia. IEP is constructed based on data provided by the Russian Independent Ecological Rating Agency (NERA). The specific exposures of Russian companies to environmental liabilities and the IEP generate unique insight into the environmental accounting research. Using price (market to book ratio) model, we demonstrate that the coefficient on IEP is positive and significant (marginally significant), suggesting that environmental performance measures are value relevant to investors in Russia.