Title: Integrating institutional theory and resource-based view in explaining corporate climate change disclosure

Authors: Say Keat Ooi

Addresses: Graduate School of Business, Universiti Sains Malaysia, 11800, Penang, Malaysia

Abstract: Climate change has been the talk of the town for some time now, acknowledging the crisis that would impact the 'triple bottom line' of people, planet, and profit. It is happening at an alarming rate than people anticipated. Businesses are disclosing more climate change information than ever before to meet stakeholders' information needs. Despite the overwhelming corporate social responsibility claims and sustainable growth concerns, the extent of corporate climate change disclosure varies among businesses. Drawing on the integration of institutional theory and resource-based view, this paper aims to elucidate the heterogeneity in climate change disclosure among firms that are subjected to comparable institutional pressures. Based on the analysis, government ownership, foreign ownership, climate-sensitive industry membership, and sustainable business network membership are crucial in influencing climate change disclosure. The findings also show that directors with international experience facilitate climate change disclosure in firms with higher foreign ownership. Additionally, corporate financial performance is tied to climate change disclosure, signifying that going green pays off. Overall, this research offers theoretical and practical implications, as well as future research directions.

Keywords: climate change disclosure; institutional pressure; organisational resource; corporate financial performance; directors with international experience.

DOI: 10.1504/IJSSM.2021.123198

International Journal of Sustainable Strategic Management, 2021 Vol.9 No.2, pp.104 - 122

Received: 09 Aug 2021
Accepted: 09 Sep 2021

Published online: 01 Jun 2022 *

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