ESG Disclosure Research Articles

THE STATE OF ESG DISCLOSURE: AN EXPLORATION OF STAKEHOLDERS AND SUSTAINABILITY MATERIALITY

The hospitality and tourism industry is known to be resource dependent and wasteful (e.g., water, energy, food, etc.). Given growing interest in the environmental, social, and governance (ESG)framework, hospitality and tourism companies’ civic duties are highlighted, and they are required to show their due diligence. From a risk management perspective, accounting, financial, and consulting institutions have introduced ESG disclosure and reporting systems, but these tools vary enormouslydepending on the industry, continents, and scope of the business. Retrieving the top 50 hospitality and tourism businesses’ ESG reports (by market capital), this study investigates the status of ESG disclosure and compliance. The findings of this study make important theoretical and practical contributions such that this study provides an important theoretical avenue for ESG conceptualization and addresses measurement validity and reliability issues. Practically, industry practitioners can detect the inequity in ESG reporting systems and identify lacking areas of ESG input.

Beyond Materiality: Materiality in ESG Disclosures under Securities Regulations in India

Beyond Materiality: Materiality in ESG Disclosures under Securities Regulations in India

Pengaruh Pengungkapan Environmental, Social, and Governance terhadap Agresivitas Pajak dengan Manajemen Laba Sebagai Variabel Mediasi

The study aims to test and demonstrate the impact of Environmental, Social, and Governance (ESG) disclosure on tax aggressiveness with profit management as a mediation. The research was carried out using the quantitative method involving 26 companies listed on the Indonesian Stock Exchange (BEI) from 2019 to 2021. Data collection methods used are library studies or documentation methods. The results of this study show that in part, ESG disclosure has no effect on tax aggressiveness, while ESG exposure has a negative effect on profit management, as well as profit management has a positive impact on tax agresiveness. The results in this study also show that with the analysis of the profit management pathway can mediate the impact of Environmental, Social, and Governance (ESG) disclosures on tax aggression. The research provides the constitution as a literature for further researchers and as additional information and input material for investors in making decisions. For governments, it can be an input to make more specific policies in the implementation of Environmental, Social, and Governance (ESG) and input in evaluating and maximizing tax-related policies.

Is Sustainable Entrepreneurship Profitable? ESG Disclosure and the Financial Performance of SMEs

Is Sustainable Entrepreneurship Profitable? ESG Disclosure and the Financial Performance of SMEs

ESG disclosure and pay-performance sensitivity

ESG disclosure and pay-performance sensitivity

The Impact of Environmental Penalties on ESG Disclosure

The Impact of Environmental Penalties on ESG Disclosure

The moderating role of blockchain technology in ESG disclosure and operational efficiency: evidence from the banking sector in ASEAN and European stock market

The moderating role of blockchain technology in ESG disclosure and operational efficiency: evidence from the banking sector in ASEAN and European stock market

The effect of environment, society, and governance (ESG) information disclosure on high-quality development of Chinese companies: Investigating the mediating role of green technology innovation

China listed companies play a significant role in fostering the economy's quality development and are leaders in the application of ESG principles by businesses. The application of ESG principles by listed companies is crucial to achieving a ‘win-win’ situation of social benefits and corporate economic benefits and raising the bar for high-quality development. Nevertheless, studies on the connection between corporate high-quality development and ESG information disclosure by China listed companies are few and contentious. This paper examines the role that ESG information disclosure plays in the development of corporate high-quality and the intermediary mechanism of green technology innovation in enterprises using panel data of China A-share non-financial listed companies from 2013 to 2022. The empirical results show that ESG disclosure and its three dimensions can significantly promote high-quality enterprise development. The study also discovers that high-quality enterprise development and ESG information disclosure are partially mediated by green technology innovation. The article’s findings serve as a guide for businesses, investors, and governments looking to adopt ESG practices.

ESG disclosure and financial performance in the European oil and gas industry

ESG disclosure and financial performance in the European oil and gas industry

Is ESG disclosure related to corporate performance Empirical evidence from Indian companies

Is ESG disclosure related to corporate performance Empirical evidence from Indian companies

Reform or Friction? ESG disclosure regulation around the world and M&A outcomes

Reform or Friction? ESG disclosure regulation around the world and M&A outcomes

Specifics Matter: An Analysis of Mutual Fund ESG Disclosures

Specifics Matter: An Analysis of Mutual Fund ESG Disclosures

Bridging ESG Disclosures and Corporate Financial Performance: A Study on Top-Listed Companies of the ASEAN-5 Countries

Bridging ESG Disclosures and Corporate Financial Performance: A Study on Top-Listed Companies of the ASEAN-5 Countries

Mutual Fund ESG Disclosures

Mutual Fund ESG Disclosures

Navigating the ESG Disclosure Terrain: Its Impact on Company Value

Navigating the ESG Disclosure Terrain: Its Impact on Company Value

Variations in financial performance of firms with ESG integration in business: The mediating role of corporate efficiency using DEA

<p>We investigated the variations in the corporate financial performance (CFP) of firms that integrate ESG factors into their business practices, focusing on the mediating role of corporate efficiency (CE). Using 909 company-level data, we applied Data Envelopment Analysis (DEA) to measure CE. We examined how these efficiency scores and CFP viz., Return on Assets (ROA), market value, and profit after tax (PAT) are influenced at different levels of ESG. To provide variational and distributional aspects, we employed quantile regression to estimate the relationship between ESG, CE, and CFP across different quantiles. The findings indicated that the impact of ESG integration on efficiency and CFP positively varies across quantiles. Further, a non-linear U-shaped relationship is established between the overall ESG score, environmental score, and social score with the CE. The efficiency initially dips at a lower disclosure score and surges to its highest at a higher disclosure score. Finally, our results revealed that ESG integration brings CE, which in turn channeled into financial outcomes, suggesting that CE plays a crucial mediating role. These results contribute to the understanding of how ESG practices can be leveraged for better financial outcomes through CE. These findings provide companies and policymakers with vital direction, encouraging a focus on robust ESG disclosure in establishing the path toward long-term corporate sustainability and profitability, guided by improved CE.</p>

Is ESG disclosure related to corporate performance Empirical evidence from Indian companies

Is ESG disclosure related to corporate performance Empirical evidence from Indian companies

Cross-border Impact of ESG Disclosure Mandate: Evidence from Foreign Government Procurement Contracts

Cross-border Impact of ESG Disclosure Mandate: Evidence from Foreign Government Procurement Contracts

The effect of CEO's compensation in driving corporate ESG greenwashing: Evidence from China.

This study examines the relationship between CEO compensation schemes and ESG greenwashing behavior in Chinese listed firms during the period 2013-2022. We find that a CEO's cash (equity) compensation has a significantly positive (negative) correlation with corporate ESG greenwashing behavior. From mechanism analysis, consistent with the agency problem view, firms engage in more severe ESG greenwashing behavior under a higher proportion of cash in the CEO compensation structure. Such distortion behavior is mitigated by higher internal control quality in firms having an equity incentive for their CEO under the convergence of interest viewpoint. Additional analysis reveals that corporates audited by large accounting firms and those with more media coverage exacerbate the positive correlation between CEO cash compensation and ESG greenwashing behavior, while government environmental regulations reinforce the inhibitory effect of CEO equity compensation on ESG greenwashing. Our results imply that different CEO compensation schemes can have opposite effects on limiting firms' ESG greenwashing behavior in the Chinese context. Furthermore, we highlight that the question of form over substance principle to certain external governance mechanisms, leading CEO to exacerbate impression management of ESG disclosure.

The causation dilemma in ESG research

<abstract> <p>The ESG literature suggests that the relationship between a firm's environmental, social, and governance (ESG) performance and a firm's financial performance is positive, but the causal link between these two variables is ambiguous. The results in this study mirrored that sentiment of the ESG literature; thus, the purpose of this article is to frame the causal ambiguity in ESG research that accounts for ambiguous conclusions in ESG literature. This study found that firms with complete Bloomberg ESG ratings had higher abnormal returns than firms without complete ESG ratings, but the actual rating did not correlate with abnormal returns. Similarly, this study found that firms with higher ESG disclosure scores (regardless of whether the disclosures were good or bad) were associated with higher abnormal returns, which further illustrates the ambiguity and suggests transparency as a clarifying factor. While much of the literature notes challenges in ESG research, this study is one of the first that frames the confusing causal link between ESG performance and financial performance as the key conclusion of the study.</p> </abstract>