The Decision to Disclose Environmental Information: A Research Review and Agenda

Environmental accounting issues related to financial disclosure and reporting are increasingly relevant to a multitude of firm stakeholders (e.g., employees, management, investors, creditors, regulators, unions, public interest groups, etc.). Environmental disclosures by firms are one means of communicating such information to these stakeholders. While many studies have examined environmental disclosures, a number of research questions still remain. This study categorizes and provides the results of prior studies, addressing the forces affecting the decision to disclose environmental information, and provides suggestions for future research. The categories used include: (1) laws and regulations, (2) legitimacy, public pressure, and publicity, (3) firm/industry characteristics, (4) rational cost-benefit analysis, and (5) cultural forces and attitudes. Research from outside the accounting discipline is often included to provide background or indicate related information from other academic disciplines.