Abstract
AbstractThis paper investigates the correlation between excessive ESG disclosure and economic risk, measured through the cost of capital. We analyze a sample comprising 430 S&P 500 US firms over 12 years, from 2011 to 2022. Our findings show that excessive ESG disclosure is associated with a reduction in the cost of capital. Specifically, the environmental and social dimensions of ESG disclosure exhibit explanatory power in decreasing the cost of capital, with the environmental dimension demonstrating particularly strong influence. Conversely, excessive governance disclosure shows no significant impact. Additionally, our study shows that CSR assurance serves as a negative moderator in the relationship between excessive ESG disclosure (including overall excessive ESG score, and environmental and social dimensions) and economic risk.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Business Ethics, the Environment & Responsibility
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.
