Does the Institutional Environment Affect Sustainability Reporting? Worldwide Evidence

This study aims to examine the association between the institutional environment and the adoption of Global Reporting Initiative (GRI) guidelines. The research sample covers the largest 500 companies in the world, based on Fortune magazine’s 2020 ranking. A logistic regression is conducted to examine the relationship between the institutional environment and GRI adoption. The findings reveal that companies from countries with high environmental development and social progress and strong governance are more likely to release GRI-based sustainability reports. This study implies the significant role of country-level institutional factors in corporate reporting.