Economic and Environmental Consequences of Digital Technologies Disclosure

: A Systematic Review and Empirical Evidence

Abstract

This study is motivated by the growing importance of voluntary disclosure of digital technologies, which could have both intended and unintended consequences at the firm level. The study presents six objectives. First, it systematically reviews the extant research on digital technologies in accounting and related fields to identify the gaps in the literature, which is considered the cornerstone of the empirical research. Second, this study measures the digital technology disclosure score in the UK's annual reports using a computerised textual analysis method. Third, the study examines the economic effects of digital technologies disclosure practices, as measured by firm value and cost of capital. Fourth, the current study also investigates the role of digital technologies in corporate environmental performance. Fifth, this study also examines the mediating role of environmental, social, and governance performance in the nexus between digital technologies disclosure and capital costs. Six, it identifies how market turbulence could reshape the nexus between digital technologies and corporate environmental performance.
Several results are presented using data from 280 non-financial firms listed on the FTSE All-Share Index between 2015 and 2022, a period that represents a dynamic phase of digital evolution, driving corporate managers to disclose their digital activities in their annual reports. First, based on the systematic literature review, the researcher found limited empirical research on digital technologies in the accounting literature. Second, the findings indicate that higher levels of digital disclosure may increase perceived risks, leading investors and lenders to demand higher returns. Third, the results show that a higher quantity of digital technology disclosures improves firm value. Fourth, this study also found a negative association between digital technologies and corporate environmental performance. Ultimately, this result offers practical advice to financial market participants, academics, and regulators, emphasising how digital technologies
disclosure influences the economic and environmental aspects. Moreover, this study employs diversified analytical techniques, including ordinary least squares, fixed effects, random effects, panel-corrected standard errors, robust, feasible generalised least squares, quantile regression, channel analysis, lagged effects, and two-stage least squares, to ensure robust findings.
This study contributes to accounting literature in several aspects. First, to the best of my knowledge, this is the first study to offer a comprehensive view of digital technologies in the UK setting. Second, this study adds value to the literature by examining whether disclosures related to digital technologies have potential benefits or drawbacks for firm value and capital costs in the UK, which follows a principles-based approach. Finally, this study also contributes by outlining how digital disclosure affects environmental performance, a top challenge for accounting scholars.
Keywords: Digital Technologies Disclosure; Cost of Capital; Firm Value; Corporate Environmental Performance; Python; UK

Date of Award	12 Jun 2026
Original language	English
Awarding Institution	University of Portsmouth
Supervisor	Awad Ibrahim (Supervisor) & Khaldoon Albitar (Supervisor)