argumentation that there are so many variables intervening in the possible linkage between environmental disclosure and financial performance, that there is no reason to expects this relationship exist other than by coincidence (Waddock and Graves, 1997). Abott and Monsen (1979) provide with their research evidence of no relationship between social disclosures and financial performance. They analyzed reported information in the years with the help of a corporate social involvement disclosure scale, developed by Ernst and Ernst. They compared their disclosure scale with the total rate of return of the investors of the 450 companies in the sample. They concluded that being socially responsible increase the doesn’t investors return, nor does it decrease. Moneva and Llena (1996) analyzed information about corporate social responsibility of 47 Spanish companies. The authors found that the provided information was limited. They found that the companies operating in the more social sensitive sectors, appear to disclose more and in greater detail information. As last they found no evidence that the financial performance of the firm is an important factor for the quality or quantity of the social responsible information disclosed. Positive findings Previous research has found evidence for a positive link between voluntarily disclosure and financial performance (Bragdon and Marlin, 1972; Richardson and Welker, 2001; Scholtens, 2008). Thes outcomes are supported by the theories of chapter 3 (the stakeholder, legitimacy and agency theory). According to these theories, is the satisfaction of different stakeholders and the society instrumental for the financial performance (Orlitzky et. al., 2004; Margolis et.al., 2007). Empirical evidence that support the slack resources theory is found by the studies of McGuire et. al. (1988, 1990). These researches investigated the link between environmental performance and the financial performance. Proponents argue the existence of a positive relationship between good financial performance and subsequent environmental performance, through the extra resources the firm has available. Comparing the social responsible performance of the year 1983 with the prior and subsequent financial performance, they conclude a more closely relation between the prior financial performance than the subsequent financial performance.
argumentation that there are so many variables intervening in the possible linkage between environmental disclosure and financial performance, that there is no reason to expects this relationship exist other than by coincidence (Waddock and Graves, 1997). Abott and Monsen (1979) provide with their research evidence of no relationship between social disclosures and financial performance. They analyzed reported information in the years with the help of a corporate social involvement disclosure scale, developed by Ernst and Ernst. They compared their disclosure scale with the total rate of return of the investors of the 450 companies in the sample. They concluded that being socially responsible doesn’t increase the investors return, nor does it decrease. Moneva and Llena (1996) analyzed information about corporate social responsibility of 47 Spanish companies. The authors found that the provided information was limited. They found that the companies operating in the more social sensitive sectors, appear to disclose more and in greater detail information. As last they found no evidence that the financial performance of the firm is an important factor for the quality or quantity of the social responsible information disclosed. Positive findings Previous research has found evidence for a positive link between voluntarily disclosure and financial performance (Bragdon and Marlin, 1972; Richardson and Welker, 2001; Scholtens, 2008). Thes outcomes are supported by the theories of chapter 3 (the stakeholder, legitimacy and agency theory). According to these theories, is the satisfaction of different stakeholders and the society instrumental for the financial performance (Orlitzky et. al., 2004; Margolis et.al., 2007). Empirical evidence that support the slack resources theory is found by the studies of McGuire et. al. (1988, 1990). These researches investigated the link between environmental performance and the financial performance. Proponents argue the existence of a positive relationship between good financial performance and subsequent environmental performance, through the extra resources the firm has available. Comparing the social responsible performance of the year 1983 with the prior and subsequent financial performance, they conclude a more closely relation between the prior financial performance than the subsequent financial performance.