Environmental disclosures in annual reports and 10Ks: An examination

A study investigates the quality of environmental disclosures in 10K and annual reports for 234 companies within 12 industries for the years 1986 through 1991. The content of environmental disclosures is examined with the aid of descriptive reporting codes, which were developed based upon the manner in which the sampled firms disclosed environmental information. The industries selected for study represent companies whose operations could have a negative material impact on the environment. The principal findings include: 1. Total AR disclosures have significantly increased since 1989. 2. Petroleum refining, hazardous waste management, and steel works and blast furnaces provided the highest quality of AR disclosures. 3. The 1989-1991 time period produced a significant increase in 10K environmental disclosures.