Journal of Contemporary Issues in Business and Government

Abstract

Using an information economics framework and a 47-item disclosure index, two determinants (proceeds from share issue and trading volume of shares during the fiscal year) of social and environmental disclosure of 53 Australian and 48 Canadian oil and gas firms were empirically examined. Results indicated that only one information cost proxy (proceeds from share issue) is a significant determinant of the extent of social and environmental disclosure amongst the sample. However, the directional sign of proceeds from share issue was contrary to expectations. Results indicate that firm size is the dominant factor determining the extent of social and environmental disclosure practices in the oil and gas industry. Whilst the empirical findings may not provide overwhelming support for the predicted outcomes, the study is a starting point for exploring alternative theoretical models to explain the type and extent of social and environmental disclosure.