Social Information Disclosure Research Articles

Does ESG information disclosure increase firm value? The mediation role of financing constraints in China

This study examined the influence of environmental, social, and governance (ESG) information disclosure on firm value and the mediation effect of financing constraints using a panel of Chinese A-listed firms from 2013 to 2020. Based on linear regressions, we found that the relationship between ESG disclosure scores and firm value was significantly positive, and the results remained after robustness checks and endogenous tests. Furthermore, the mediation effect analysis indicates that the relationship is achieved by alleviating financing constraints. The subsample analyses showed that ESG disclosure scores positively affect firm value in non-state-owned, nonheavy polluting, and high-transparency firms. The results of each dimension’s relationship to firm value indicate that environmental and social dimensions significantly affected firm value in the panel data, whereas governance did not. Therefore, this paper determines the influence of ESG information disclosure and firm value in China and reveals the mediation effect of financing constraints, supplementing the influence mechanism of information disclosure and extending the previous studies bsed on the developed stock markets.

Does internal control improve enterprise environmental, social, and governance information disclosure? Evidence from China

AbstractEnvironmental, social, and governance (ESG) is a relatively new concept that emphasizes how to contribute to creating sustainable businesses. However, research on factors that influence ESG development is insufficient. This study explores how internal control influence enterprise ESG information disclosure, using 2009–2021 data from China's A‐share listed companies. The findings show a substantial positive correlation between internal control quality and corporate ESG information disclosure. Particularly, the internal control quality significantly affects corporate governance information disclosure. Moreover, the connection between internal control quality and enterprise ESG information disclosure is significantly and positively moderated by media attention. Specifically, negative media evaluations have significant impacts on enterprises. The main findings remain valid even after conducting multiple robustness tests, such as the lag test, propensity score matching, instrumental variable method, and alternative measurements for the key variables. This study widens the theoretical research frontier of internal and external supervision mechanisms.

Assessing the Relationship between Corporate Social Responsibility and R&D Effectiveness of Firms

Practices of corporate social responsibility often generate synergetic effects and improve financial and overall firm’s performance. However, in the high-tech industries, research and development (R&D) efficiency remains a key element of development strategy, and a shift towards sustainable activities can be considered as a trade-off. This study investigates the empirical link between corporate social responsibility practices and R&D effectiveness in R&D-intensive industries. Specifically, this research assesses the impact of environmental, social, and governance information disclosure, the availability of third-party rating, and long-termism on R&D returns. We employ the Hausman–Taylor estimator to analyze three R&D-intensive industries, namely pharmaceuticals, biotechnology and software, for the period from 2012 to 2019. Empirical results show that, in general, higher values of corporate social responsibility metrics are associated with the weaker R&D returns. The findings of this research might be meaningful for managers in making informed decisions with respect to corporate social responsibility practices.

EXAMINING THE EFFECTS OF AND MODERATING INFLUENCES ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE INFORMATION DISCLOSURE ON VALUE-AT-RISK: EVIDENCE FROM CHINESE LISTED COMPANIES

Generally, research on the effects of Environmental, Social and Governance (ESG) information disclosure on listed companies is primarily limited to developed countries. By contrast, the current study is located in China and analyses whether ESG reduces the downside risk of listed companies in China, and whether political connections and institutional investors moderate this relationship. This study uses Chinese A-share listed companies from the Shanghai and Shenzhen stock markets from 2010 to 2021 as research samples. Results demonstrated that the inhibitory effect of enhancing ESG performance on enterprise risk is more significant in non-heavy polluting industries, non-state-owned enterprises, and enterprises in areas with low levels of marketisation. This study explores the economic implications of ESG performance from a Value-at-Risk (VaR) perspective, enriching the relevant research on ESG rating in China and providing a fresh perspective to better elucidate the economic significance of companies improving their ESG performance. This study introduces institutional investors and political connections as two moderating variables to analyse their effect on the relationship between ESG performance and VaR. In addition, heterogeneity analysis is carried out in combination with the industry, region, and ownership nature of listed companies to test the “insurance” and “information” effects of ESG performance, to provide decision-making references for investors, enterprise managers, and regulators.

Factors of Carbon Emission Disclosure by Moderation of Company Size in Mining Sector Companies

This research aims to determine the role of environmental performance, profitability and emission volume in increasing the spread of carbon emissions by moderating company size. This research uses quantitative methods with causality and the data methods used in this research are descriptive statistics, panel data regression, classical assumption tests, hypothesis tests and coefficient of determination using Eviews 12. The population of this research is mining sector companies listed on the Stock Exchange Indonesia from 2019 to 2022. The sample was determined based on the purposive sampling method, with a sample size of 20 so that the total observations in this study were 78 observations. The data used in this research is secondary data. The data collection method uses the documentation method via the official website www.bei.co.id Hypothesis testing uses the t test. Based on the results of panel data linear regression, it shows that the influence of environmental performance with carbon emission disclosure explains that environmental performance is the company's ability to create a green and clean environment. In accordance with legitimacy theory, social relations between companies and society require companies to comply with norms that apply in society, one of which is by protecting the environment, if the company wants to gain legitimacy from society. Then company size can moderate the influence of environmental performance and emission volume on carbon disclosure. The reason company size moderates environmental performance on the disclosure of carbon emissions is that the higher the level of assets of a company, the greater or greater the disclosure of social information made by the company. So it provides a commitment to the interests of the company but must provide benefits to its stakeholders. So that partial profitability has no effect on carbon emissions disclosure, while the volume of carbon emissions has an effect on carbon disclosure.

Do sustainability reporting standards affect analysts’ forecast accuracy?

PurposeThis study aims to contribute to the emerging debate about materiality with novel insights about the signaling effects related to the disclosure of environmental, social and governance (ESG) information using the guidelines released by the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB).Design/methodology/approachAn empirical assessment using panel data analysis was built to evaluate the relationship between sustainability reporting standards and analysts’ forecast accuracy.FindingsThe analysis revealed that the proliferation of sustainability reports prepared on mandatory or voluntary basis mitigated the signaling effects related to the disclosure of ESG information by companies. Furthermore, the additional analysis conducted considering sustainability reporting quality and ESG performance revealed the existence of mixed effects on analysts’ forecasts accuracy. Therefore, the insights highlighted the need to consider a cautionary approach in evaluating the contribution of ESG data to financial evaluations.Practical implicationsThe practical implications consist of identifying criticisms related to disclosing ESG information by listed companies. In detail, the analysis underlines the need to enhance reporting standards’ interoperability to support the development of more accurate analysis by investors and financial experts.Social implicationsThe analysis reveals increasing attention investors pay to socially responsible initiatives, confirming that financial markets consider sustainability reporting as a strategic driver to engage with stakeholders and investors.Originality/valueThis research represents one of the first attempts to explore differences between GRI and SASB using an empirical approach.

Estrutura do conselho de administração como mecanismo para atingir a Agenda 2030 na América Latina

Abstract This study aims to investigate the effect of board structure on companies’ engagement with the Sustainable Development Goals (SDGs). The characteristics of the board of directors related to the size of the board, independence, and diversity were analyzed, as well as the disclosure of the 17 SDGs of 371 companies headquartered in Latin America from 2016 to 2020. The data were analyzed using data regression in a panel with fixed effects and regression of panel data using the logit method. Research findings showed that board size and board independence have a positive effect on SDG disclosure. The results are in line with the Upper Echelons Theory, as it advocates that the company’s strategic choices and positioning are made by senior management - the members of the board of directors. The research expands the explanation of this theory, confirming that top management is crucial for strategic positioning in environmental and social issues. Managers and shareholders must understand that certain features, such as the social responsibility committee and the preparation of a sustainability report, can also contribute to the 2030 Agenda. At the government level, the results are useful for public policy makers, as they can encourage the creation of norms for the voluntary disclosure of environmental and social information.

Editorial: Recent trends and future expectations

This issue of the journal has a number of useful articles to include reporting of research related to the use of artificial intelligence (AI), the impact of the recent supply chain disruptions, and the impact of disclosure of environmental, social, and governance (ESG) information. These (as well as the other articles in this issue) are highly pertinent to current research. This editorial will address some impacts of AI, the impact of business disruption from exogenous sources, and the impact of company requirements to disclose ESG information.

Impact of Corporate Social Responsibility on Financial Performance of Production Enterprises Listed on Ho Chi Minh Stock Exchange (Hose) – Viet Nam

Purpose: The objective of this research was to analyze the approaches related to that the impact of each aspect of social responsibility on the financial performance of businesses of production companies listed on the Ho Chi Minh City Stock Exchange in Vietnam. Theoretical framework: The Stakeholder Theory has explained and justified the need for implementing Corporate Social Responsibility (CSR) with stakeholders. Results and conclusion: The results showed that the impact of each aspect of social responsibility on the financial performance of businesses, the regression results reveal that only the environmental responsibility index has a favorable effect on the Return on Assets (ROA) of the company. However, aspects of social responsibility towards employees, the community, and customers do not affect financial performance. Research implications: The research results on the impact of corporate social responsibility on financial performance in the annual reports of production companies listed on the Ho Chi Minh City Stock Exchange in Vietnam indicate that social responsibility activities and information disclosure have a positive influence on profitability and contribute to the sustainable development of the company. Originality/value: Additionally, the results also demonstrate that company-specific factors, such as company size and financial leverage, significantly impact the company's profitability.

Influence of Media Attention on the Quality of Environmental, Social, and Governance Information Disclosure in Enterprises: An Adjustment Effect Based on the Shareholder Relationship Network

As an intermediary in information dissemination and a guide of public opinion, the media represent an important external supervision force in corporate governance. It is very important to fully understand the supporting role of public media in the modernization of environmental governance in China to improve the quality of ESG information disclosure. Based on the data of companies listed on the Shanghai and Shenzhen 300 Index from 2015 to 2020, this paper finds that media attention has a significant positive impact on ESG information disclosure, that is, high-frequency media attention can promote the quality of ESG information disclosure, while different types of media reports can promote the quality of ESG information disclosure. Considering the characteristics of media emotions, it is found that negative media reports can promote the quality of ESG information disclosure. The shareholder relationship network strengthens the positive influence of media attention on the ESG information disclosure of enterprises through the information advantage of a “weak relationship”. These research conclusions reveal the internal influence of media attention on the quality of the ESG information disclosure of enterprises and the regulatory role of the shareholder relationship network to some extent, which provides the governance perspective on and empirical basis for ESG information disclosure research, and it also provides a decision-making reference for promoting the quality of the ESG information disclosure of listed enterprises in China, enriching the theoretical research and practical exploration of ESG information disclosure.

The juridification of social accounting and the transposition process of the non-financial reporting directive 2014/95/EU

PurposeThis paper aims to critically analyse the transposition implications of Union Directive 2014/95. This Directive identified the need to raise the transparency of the social and environmental information provided by the undertakings to a similarly high level across all Member States.Design/methodology/approachThe paper considers how the European Member States of the European Union (EU) have transposed Directive 2014/95 into their regulations. The focus is on the juridification of social accounting in the pursuit of creating an overlapping consensus through Habermas’s concept of internal colonisation. The paper uses qualitative content analysis to scrutinise the national laws that transpose Directive 2014/95, discussing both what has been accomplished and what can be achieved by the release of future legislative provisions.FindingsDespite the aim of Directive 2014/95 to create a common language for disclosing non-financial information, this study shows an implementation gap among and between Member States and an inconsistent picture of the employment of this Directive. Its implementation in the 28 European countries was considered a process of colonisation in implementing Union directives among European undertakings. However, the implementation process, which exemplifies Habermas’s juridification, has failed due to the lack of balance between moral discourse and actions.Originality/valueThis paper contributes to the ongoing debates concerning the implementation of mandatory disclosure of environmental and social information in the EU Member States, promoting new directions for the EU’s democratic laws on social accounting. In addition, it offers an example of how internal colonisation only catalyses effects when moral laws are legitimised through the provision of procedures.

Sentimental Sustainability: Does What Companies Say Tell More Than What Companies Do?

AbstractBased on a sample of more than eleven thousand unique 10‐K reports of US companies filed with SEC in period 2013 to 2018, this study examines the relationship between actual sustainability performance of companies, evaluated by MSCI ESG performance scores, and the extent and the scope of environmental, social, and governance information disclosure in their annual reports. The study shows empirical evidence supporting the signalling theory view of voluntary disclosure of ESG information in annual reports for most industries, while environmentally unfriendly companies belonging to the Mining industry division show excessive reporting behavior favoring environmental topics, which is consistent with incentives to improve public image and mitigate social, political, and legal risks in line with the legitimacy theory of information disclosure. When differentiating between forward‐looking and non‐forward‐looking ESG statements, the study shows that companies providing more forward‐looking ESG information in annual reports show better next‐year ESG performance. This study implements established content analysis techniques with focus on ESG reporting and performance, building up on the study of Baier, Berninger, and Kiesel (2020) that proposed an ESG‐tailored dictionary for textual analysis purposes.

Social Performance Disclosed by European Companies: The Role of the Board Attributes and the Country’s Legal System

This paper aims to analyze factors that influence social performance-related information disclosure in European countries. Specifically, the objective is to investigate the Board’s attributes (Diversity, Inclusion, People Development and Controversies). To achieve the goal, an empirical analysis was conducted with 2494 listed companies in Europe as support for the economic year 2021. To measure a possible link between the variables under study, a regression analysis was performed. Our results show that Board Diversity, Inclusion and People Development contribute positively to social performance disclosure, whereas Board Controversies negatively affect the dependent variable. Furthermore, the study results reveal that the country’s legal system is relevant to the company’s transparency. The model variables determine 62% of the social performance reporting variance. Our Results are useful for all non-financial information users, governments and organizations in developing sustainability reporting standards.

Literature Study: The Role Of Accountants In Reporting Environmental, Social, And Governance Information

The purpose of this study is to get an overview of the role of accountants in terms of existing literature in relation to information related to Environmental Social Governance (ESG). In addition to the role of accountants, the role of the audit committee is also needed as an independent party in order to minimize the opportunities for accountants and management to commit fraud. Methods: The research method in this article is qualitative research with a literature review approach obtained from articles and journals from pre-existing research. Literature review is a form of literature research by reading various types of books, journals, and the like related to the topic of discussion in research to produce a scientific paper, such as research articles, dissertations, theses, and others. Results: Environmental, Social, and Governance (ESG) information disclosure practices are one of the good strategies to implement for companies, because disclosure of this information is needed to shape a company's image. In order to care and increase awareness of the social environment and surrounding governance. This makes Environmental, Social, and Governance (ESG) a tool for companies to gain legitimacy from the community and stakeholders, where it will cause a positive response in the community by giving confidence in the use of company products, and also trust when investing in the company.

The relations among environmental, social disclosure, sustainable development and firm performance: Empirical evidence from mining enterprises listed on the stock market in Vietnam

This study was conducted to examine the relationship among environmental, social disclosure, sustainable development, and firm performance. The data is collected from 71 mining companies listed on Vietnam’s stock market from 2018 to 2021. Research results show that the level of environmental and social disclosure has direct impact on the level of sustainable development and firm performance of the company. Moreover, the results also show that the level of environmental and social disclosure has indirect impact on the firm performance of through the sustainability variable. Through findings, some recommendations are given for promoting social and environmental disclose of Vietnamese mining companies and similar countries to raise their awareness and responsibility for social and environmental information disclosure.

Impact of executive pay gap on environmental, social, and governance disclosure in China: Is there a strategic choice?

AbstractThis study investigates the mechanisms through which the executive pay gap affects the disclosure of environmental, social, and governance (ESG) information. Utilizing panel data from China's A‐share listed firms between 2012 and 2020, our findings reveal a significant positive correlation between the executive pay gap and ESG disclosure, with real earnings management playing a partial mediating role. Notably, the impact of the executive pay gap on ESG disclosure is more pronounced in voluntary disclosure firms and those with low internal control levels, as compared to mandatory disclosure firms and those with high internal control levels. This study provides international evidence for the strategic disclosure behavior of ESG information and the necessity of ESG disclosure regulation.

The impact of green mergers and acquisitions on illegal pollution discharge of heavy polluting firms: Mechanism, heterogeneity and spillover effects

This paper is to discuss the impact of green mergers and acquisitions (GMA) on illegal pollution discharge (ILP). The diurnal difference pollution data of the nearest monitoring station around heavy polluting enterprises are used to measure ILP. Results show that: (1) Compared with polluting firms that have not conducted GMA, GMA can reduce ILP by 2.9%. (2) Large scale, strong industrial correlation and cash payment of GMA is more conducive to controlling ILP. GMA in the same city is easier to inhibit ILP. (3) Impact paths of GMA on ILP mainly include cost effect, technology effect and responsibility effect. GMA aggravates ILP by increasing management costs and risk control risks. GMA inhibits ILP by increasing green innovation, environmental protection investment, social responsibility performance and environmental information disclosure. (4) GMA has a greater inhibition effect on ILP in state-owned firms, technology-intensive firms and eastern firms. (5) The industrial spillover effect of GMA is more obvious than that of the same city. This paper provides implications for curbing ILP from the perspective of GMA.

The impact of social vs environmental sustainability information disclosure on consumer choice of delivery time with varying sustainability concerns

PurposeThis paper investigates the impact of sustainability information disclosure on consumers' choice of order-to-delivery lead-time in relation to consumers' sustainability concern.Design/methodology/approachBased on two choice experiments with participants from the Netherlands (n = 348) and the United Kingdom (n = 1,387), the impact of sustainability information disclosure was examined in connection with consumers' concerns for environmental and social sustainability. Information on environmental impact (carbon emission) and social impact (warehouse workers and drivers' well-being) was considered and compared.FindingsDisclosing sustainability impact information significantly increased consumers' preference and choice for longer delivery times, with equivalent effects for environmental and social impact information. Consumers' relevant (environmental or social) sustainability concern as personality traits enhanced effects on preferences, as did priming of environmental concern.Research limitations/implicationsFuture research may consider differences between product categories or e-commerce companies' reputation in sustainability activities.Practical implicationsThe findings provide opportunities for online retailers to influence consumer choice of delivery time, especially through disclosing environmental and/or social sustainability information.Originality/valueThis study fills a gap in the literature on sustainability information disclosure to actively steer consumer choice of delivery time, particularly regarding the effect of social sustainability impact information in comparison to its environmental counterpart.

Support and Informational Needs of Ultra-Orthodox Jewish Women Coping with Advanced Cancer: A Pilot Observational Study

In Israel, as in other countries, the emotional and physical needs of minority populations receiving palliative care, are largely unknown. The ultra-Orthodox Jewish sector is one such minority population. This study’s goal was to identify perceived social support, desire to receive information about illness and prognosis, and willingness to disclose information to others. Various measures assessing perception of social support, psychological symptoms and information disclosure were completed. Fifty-one women consented to participate; approximately 50% of participants had disclosed the diagnosis to their rabbi or a friend, in addition to their spouse. Almost all of the participants would want to be told if their condition were worsening (86.3%), yet only 17.6% reported that their doctor had discussed future care options if their health situation were to worsen. Overall, participants felt that the level of support they received was high and reported low levels of mental distress. This is the first known study regarding perceptions and needs of ultra-Orthodox Jewish women with advanced-stage cancer. Both diagnosis disclosure and palliative care options should be addressed and discussed with these patients so they may make important end-of-life decisions.

Status Quo and Improvement Path of Social Responsibility Information Disclosure in Corporate Development Management

Fundamental is a sound social responsibility information disclosure mechanism to prosper large-scale businesses. This paper dissected the correction between Fosun Pharma s performance of corporate social responsibility and its advances, as corporate social responsibility now has jostled for public attention at home and abroad. Efforts were invested in analyzing the disclosure of social responsibility accounting information by the representative Fosun Pharma on the basis of the theory of corporate social responsibility and stakeholder theory. The company failed to prepare a well-functioning strategic CSR in the process of fulfilling its social responsibility, and showed certain deficiencies such as insufficient disclosure of social responsibility quantitative information, delayed disclose of negative information, onefold disclosure form, and defective control environment, revealed the investigation. Meanwhile, it suggested that progress should be made in cultivating the awareness of corporate social responsibility information disclosure, quantifying indicators as much as possible, enriching information disclosure form, and shaping a good control environment for social responsibility performance. This research not only enriches the research literature on the relationship between CSR and corporate development, but enlarges the variable scope of corporate social responsibility, which is of certain practical significance for corporate development management and the establishment of a sound social responsibility management mechanism.