Quantity versus Quality: The Impact of Environmental Disclosures on the reputations of UK plcs

S. Toms, J. Hasseldine, A. Salama

Research output: Contribution to journalArticlepeer-review


The theoretical framework of this paper integrates quality-signalling theory and the resource based view of the firm to test the differential effects of the quantity and quality of environmental disclosures on the firm’s environmental reputation. Uniquely, the study uses a quality-adjusted method of content analysis, so that sentences are not merely counted but also weighted to reflect their likely significance. Investments in research and development and diversification, as potential methods of enhancing of environmental reputation, are also considered. In doing so the paper complements and extends the work of Toms (2002). The results confirm the framework and models tested in the original paper on more recent data and also suggest that quality of environmental disclosure rather than mere quantity has a stronger effect on the creation of environmental reputation amongst executive and investor stakeholder groups. Research and development expenditure, and under certain circumstances, diversification, also add to reputation.
Original languageEnglish
Pages (from-to)231-248
Number of pages17
JournalBritish Accounting Review
Issue number2
Publication statusPublished - Jun 2005

Bibliographical note

Copyright © 2005 Elsevier Ltd. This is an author produced version of a paper published in British Accounting Review.


  • Environment
  • Reputation
  • Accounting disclosure
  • Resource-based view
  • Quality signalling

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