Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 31, 2022 erstellt
Beschreibung:
Accounting comparability refers to the similarity with which similar economic events are reflected in the accounting choices of firms. Accounting comparability facilitates understanding and hence learning from peer firm disclosures. Using a sample of 8,685 observations for 588 unique firms, we show that higher accounting comparability reduces environmental violations. To identify the channel which drives the relation between accounting comparability and environmental violations, we use EPA data on toxic releases to examine whether accounting comparability is related to improved environmental practices. We find that the negative relation between accounting comparability and environmental violations is at least partly driven by the reduction in harmful environmental pollutants. Our results provide the first evidence that accounting comparability not only benefits the firm in improving its productivity and investment decisions but also benefits society at large by protecting the environment