Disclosure of provisions and environmental contingent liabilities under the perspective of institutional theory

Abstract

The study aimed to investigate the factors influencing the disclosure of provisions and liabilities for environmental contingent of high environmental impact companies, from the perspective of institutional pressures according to the New Institutional Sociology (NIS) side of Institutional Theory. In this way, a descriptive, documentary research with a quantitative approach was carried out, in which we analyzed the notes of 48 companies belonging to sectors of activity classified as high pollution potential, listed on the BM&FBovespa, referring to the years 2010, 2011, 2012 and 2013. The research found through regression analysis with panel data, the dissemination of information on environmental provisions and liabilities contingent by the sample companies is influenced by variables: company size, level of governance, sector of activity and participation the ISE (Corporate Sustainability Index). In the results, analyzed in the light of institutional theory, reveal that external motivations seem to be more significant that internal to explaining the disclosure of information on environmental provisions and contingent liabilities by the companies, as the presence of normative pressure mechanisms, as the differentiated corporate governance rules and participation in the ISE require greater disclosure. Moreover, largest companies tend to present higher level of disclosure due to specific characteristics of institutional environment as the level of external pressure and the availability of resources for disclosure.