Emerging market multinational enterprises (EMNEs) are under increasing pressure to demonstrate robust environmental, social, and governance (ESG) as they expand globally. However, existing research has not thoroughly examined the theoretical relationship between ESG disclosure and the degree of internationalisation of EMNEs. This study addresses this gap by integrating institutional and signalling theories, revealing that superior ESG is positively associated with higher levels of EMNE internationalisation. This relationship is mediated by international financing capabilities and moderated by media attention. The study demonstrates that strategic initiatives related to ESG disclosure can serve as signals of legitimacy for EMNEs navigating institutional complexities on a global scale. These findings are supported by an empirical analysis of panel data from 2011 to 2020, providing theoretical insights into ESG signalling mechanisms. Practically, proactive ESG strategies can offer a competitive advantage for EMNEs as they manage complex foreign expansions amidst growing demands for responsible business conduct.
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