Document Type
Article
Publication Date
Winter 10-1-2025
Abstract
Purpose – This study investigates how corporate governance (CG) influences the alignment between firms’ environmental performance and their environmental disclosure practices. Drawing on the concept of policy– practice decoupling, the study examines whether CG mechanisms enhance the credibility and consistency of environmental reporting. Design/methodology/approach – Using a panel dataset of 80 Johannesburg Stock Exchange-listed firms covering the period 2012 to 2023, the study employs panel-corrected standard error regressions and various robustness tests. Corporate carbon performance (CCP) is used as a proxy for environmental commitment, and environmental disclosure level (EDL) captures the extent of implementation. Findings – The results show a significant positive relationship between CCP and EDL, suggesting that firms with stronger environmental performance are more likely to disclose information. Furthermore, corporate governance significantly moderates this relationship, with stronger governance associated with greater alignment between commitment and disclosure. Originality/value – This study contributesto emerging literature on the role of governance in reducing policy– practice decoupling in sustainability. It offers evidence from an under-researched emerging market context (i.e. South Africa), where progressive governance reforms coexist with many implementation challenges. The findings offerinsightsfor regulators, boards, and investors aiming to enhance the transparency and credibility of corporate sustainability practices.
Recommended Citation
Nel, G.F., Salah, W. and Hussain, N., 2025. From claims to commitments: Does corporate governance help firms walk their talk?. Journal of Accounting in Emerging Economies, pp.1-26.