Exploring Coercive Pressure and Environmental Performance in Emerging Markets: A Path to Greater Environmental Disclosure

Abstract

Purpose – The purpose of this research is to examine the relationship between creditor pressure and environmental disclosure as well as to improve a complete understanding of the effect of mediation on environmental performance
Design/Method/Approach – This research used a company sample listed in developing countries in Asia from 2010-2022. Two models were developed and tested using unbalance data panel with three approach regression common effect models, fixed effect models (FRM), and random effect models (REM).
Findings – The results showed that coercive pressure increases environmental disclosure. The research found good environmental performance practices could be a medium between coercive pressure and environmental disclosure.
Practical Implications – This research contributes to the CSR literature study and coercive pressure. Our findings highlight the role of market sophistication and company motivation in performing environmental performance and disclosure.
Originality and value - This study expands on existing research. Our findings concluded that the competent monitoring and information processing capabilities of creditors can be used as a governance mechanism to maintain the legitimacy of stakeholders.
Keywords: Coercive Pressure, Environmental Performance, Environmental Disclosure
Paper type- Research paper