The moderating role of environmental performance in the relationship between CSR reporting and stock market performance

Abstract

This paper analyzes the relationship between environmental reporting and stock market performance by taking into account the moderating effect of environmental performance. This relationship has been analyzed in numerous academic publications, but there are no clear results about its nature. Environmental disclosure is criticized by some stakeholders because its only goal is to strengthen corporate legitimacy to ensure organizational survival. This leads stakeholders to question the perceived credibility of environmental information voluntarily published by organizations. The authors address this important issue by drawing on a field study of ninety-one French companies, which highlights the role of environmental performance as a key factor conditioning the benefits that an organization can expect from a policy of active environmental communication to shareholders.