The relation among firm's characteristics, environmental performance, and environmental disclosure: An empirical study

This study examines the determinants of corporate environmental disclosure. I develop a three-dimensional model to investigate the effect of firm's characteristics on its environmental performance and environmental disclosure. These characteristics include: environmental exposure, past environmental disclosure, past environmental performance, economic performance, creditors' pressure, public exposure, and environmental concern. In addition, the model explores the relation between environmental performance and environmental disclosure.;As predicted, this study finds that environmental exposure an past environmental performance have a significant positive effect on environmental performance. However, contrary evidence is found supporting a significant negative effect of the existence of an environmental committee on environmental performance. This study also predicts a positive effect of environmental exposure and past environmental disclosure on environmental disclosure. This prediction was not rejected by the results of this study.;The most significant finding of this study is the significant positive reciprocal relation between environmental performance and environmental disclosure. This relation indicates that environmental exposure, past environmental performance, and the existence of an environmental committee have an indirect effect on environmental disclosure. In addition, environmental exposure and past environmental disclosure have an indirect effect on environmental performance.