Abstract
This study examines the impact of non-financial disclosure (NFD) on firms' labor investment efficiency. We analyze a broad sample of firms located across 44 countries and the period 2006–2019. Using regression analysis, the association between abnormal employment growth and environmental, social and governance (ESG) disclosure volume is evaluated. Preliminary evidence reveals that this association is, in general, negative, with NFD exerting a positive influence on labor investment efficiency. Importantly, we also find that the country's institutional and legal background modulates the association, in that the link is markedly stronger in countries with higher-quality investor protection, rule of law and anti-self-dealing devices. Finally, we document stronger effects of ESG disclosure in countries featuring higher labor market rigidities and unionization rates, even after controlling for the country institutional and legal background.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.