Abstract:

The purpose of this study is to investigate the role of primary (investors, consumers and employee) and secondary (environment, regulator that requires mandatory environmental disclosure under the Directive 2014/95/EU and standard setters) stakeholder groups on company’s environmental disclosure.

The sample comprised 71 selected listed companies over 6 years. Content analysis was used to measure the extent of environmental disclosure. The econometric model was estimated using panel random effects.

The extent of the environmental disclosure is significantly affected by stakeholder groups’ demands. Among primary stakeholder groups only customers, exert a strong influence on environmental disclosure. As for secondary stakeholder groups, environment, regulator and standard setters, these all greatly influence environmental disclosure practices.