Title: Financial performance, environmental performance and environmental disclosure: the case of Tunisian firms

Authors: Montacer Belhaj, Salma Damak-Ayadi

Addresses: Higher Business Studies Institute, Carthage Presidence, 2016 Tunis, Tunisia. ' Higher Business Studies Institute, Carthage Presidence, 2016 Tunis, Tunisia

Abstract: The purpose of our study is to examine the relationship between financial performance, environmental disclosure and environmental performance of Tunisian companies. This paper adopts legitimacy theory as the theoretical perspective for explaining the environmental-financial linkage. First, we measured scores for environmental disclosure and environmental performance through the annual reports and the websites of 31 Tunisian companies. Second, we tested the relationship between these scores and the financial performance using a multiple regression analysis. The results showed that the financial performance of Tunisian companies has a negative influence on environmental performance and on environmental disclosure. Thus, the more profitable firms have low levels of environmental performance and disclose less environmental information. In contrast, Tunisian firms with poor financial performance will undertake environmental activities in order to improve their image towards their stakeholders.

Keywords: environmental disclosure; environmental performance; financial performance; legitimacy theory; Tunisian firms; Tunisia.

DOI: 10.1504/AAJFA.2011.041632

Afro-Asian Journal of Finance and Accounting, 2011 Vol.2 No.3, pp.248 - 269

Published online: 28 Jul 2011 *

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