The Relationships between Environmental Risk, Environmental Disclosure, and Firm Performance

Environmental protection and sustainable development is one of the widely discussed corporate issues in today’s world economy. However, the number of compulsory environmental disclosures laws is very limited. Therefore, companies choose to provide disclosures on environmental issues voluntarily. This study examines the effect of environmental risk on environmental disclosure of Qatari listed companies. Additionally, it investigates the impact of environmental disclosure on firm performance (i.e. ROE and net profit margin). 42 listed companies in Qatar exchange has been selected as the sample and descriptive statistics, correlations analysis, and regression analysis were used. The environmental disclosure was measured by a disclosure index consists of 20 items. The results indicate that there is a positive relationship between environmental risk and environmental disclosure. Whereas, there is no significant relationship between environmental disclosure and firm performance.