Title

Does Web Disclosure Of Environmental Information Affect Litigation Awards?

Keywords

Financial environmental disclosures; Juror decisions; Litigation; Nonfinancial information; Presentation format

Abstract

Companies frequently use Internet Financial Reporting (IFR) to distribute financial and nonfinancial information to stakeholders. Research suggests that companies often distribute information via the web for impression management purposes in order to diffuse potential negative reactions and/or to promote positive reactions to corporate policies and actions. The purpose of this study is to investigate whether web disclosure of environmental information and the presentation format influences the outcomes of litigation awards. Results indicate that even a partial web disclosure of pending environmental sanctions on a company's financial statement reduces the compensatory and punitive damages that jurors award when shareholders suffer losses as a result of environmental sanctions. The results also indicate that firms using enhanced presentation formats when disclosing environmental information further reduce the amount of damages awarded against them. These results have implications for users and preparers of IFR, and for policy makers weighing mandates for disclosure of nonfinancial information in annual reports. Copyright © 2013 by Emerald Group Publishing Limited.

Publication Date

9-27-2013

Publication Title

Advances in Accounting Behavioral Research

Volume

16

Number of Pages

1-22

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1108/S1475-1488(2013)0000016006

Socpus ID

84884518426 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84884518426

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