Corporate Environmental Disclosure: Annual Reporting Practices of Maharatna Companies in India

Abstract

The study aims to empirically examine, measure, and analyze the annual reporting practices of Environmental information and its nature by all Maharatna companies in India. The extent of disclosure has been measured using an unweighted disclosure index consisting of 50 information items. It is clear from the examination and analysis of the annual reports of Maharatna Companies that, with a fairly high mean disclosure (77.8%) and a low standard deviation (7%), the environmental disclosure level of the Maharatna companies in India is adequate and up to a satisfactory level. It is found that a considerable portion of the annual report has been devoted to providing environmental-related information. Most of the disclosures have been reported in qualitative form. The quantum and pattern of environmental disclosure are not the same for all companies. The location of disclosing similar kinds of environmental information also differs from company to company. Very little information has been disclosed in terms of monetary value by the companies. Presentation of environmental information through graphical mode is rare. They conclude that the introduction of legal obligation with regard to disclosure practices will improve the level of disclosure more.