Critical literature synthesis of social and environmental performance and disclosure relationship: A review of empirical studies

In this paper, we synthesize and critically assess empirical research on the relationship between social/environmental performance (SEP) and social/environmental disclosure (SED).We, therefore, use literature synthesis and critical assessment in conducting our review, focusing on theory selection and application, methods used and results reported by the empirical studies included in our sample of 77 studies. Empirical evidence documented to date in the area is still mixed ranging from positive, negative, nonlinear to neutral relationship. We found various reasons attributable to the persistent mixed-findings. These include issues on measurements of performance and disclosure variables; inconsistencies concerning the choice and application of econometric measures of association and the rather unsystematic way in which some researchers employ theories. We posit that mixed findings are here to stay because positive, negative or nonlinear relationship may appear consistent and appropriate depending on the research circumstance of a study, theory used and the kind of method employed. As a comprehensive literature review, this paper identifies some inconsistencies in the research area and proposes a road-map giving suggestions for future research focusing on purpose, location, nature of the study, methods and systematic choice of theory/theories.