Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings

Eng, Li Li; Fikru, Mahelet G.; Vichitsarawong, Thanyaluk

doi:10.1108/sampj-03-2021-0095

Cited by 32 publications

(19 citation statements)

References 53 publications

(74 reference statements)

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“…This situation can be explained by the strict legal regulations and mandatory disclosures pushing firms to disclose governance structure‐related information compared to E and S dimensions, which are more voluntary. These findings are also similar to the relevant literature (Eng et al, 2022; Yu & Van Luu, 2021). The firms in the sample have an average of 15.9% female members on their boards of directors.…”

Section: Resultssupporting

confidence: 93%

Board gender diversity and corporate social responsibility (CSR) disclosure in different disclosure environments

Temiz

Acar

2023

Corp Soc Responsibility Env

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This study investigates the firms' CSR disclosure by considering the joint effects of board gender diversity and secrecy culture in an international setting. Building on a sample of 14,185 firm‐year observations from 43 countries during 2010–2019, this study shows that while board gender diversity and CSR disclosure are positively associated, countries' secrecy levels negatively affect CSR disclosure. However, we provide evidence that the higher female representation on the board of directors significantly attenuates the restrictive role of secrecy culture on the CSR disclosure level. In other words, the suppressive effect of national secrecy on CSR disclosure weakens firms with higher gender diversity on the board of directors. Our results are robust to several sensitivity checks and endogeneity problems. This study suggests that the reducing effects of national secrecy culture on firms' CSR disclosure level can be attenuated by utilizing internal governance mechanisms such as board gender diversity.

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Section: Resultssupporting

confidence: 93%

Board gender diversity and corporate social responsibility (CSR) disclosure in different disclosure environments

Temiz

Acar

2023

Corp Soc Responsibility Env

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“…Hypothesis 1 is confirmed, and our results are inconsistent with some authors. For example, a study (Eng and Fikru, 2021) showed that ESG scores are positively associated with market value and price. Sustainability disclosure in the form of metrics and firm-tailored narratives provides the incremental information content on market value and/or price.…”

Section: Jefasmentioning

confidence: 99%

Market reaction to firms' investments in CSR projects

Cherkasova

Fedorova

Stepnov

2023

JEFAS

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PurposeThe purpose of this paper is to determine the impact of corporate investments in corporate social responsibility (CSR), measured by the environmental, social and government (ESG) rating, on the market valuation of a firm's stocks and to explain the regional differences in the degree of this influence.Design/methodology/approachThe empirical study uses linear and non-linear panel regression models for a panel sample of 951 firms listed in Asia, North America and Europe operating in innovative industries.FindingsThe CSR score was found to be significant in terms of stock excess return on the regional level. However, this finding cannot be extrapolated to the global scale. ESG rating is priced by the European and North American markets negatively, while in the Asian market, it is positive. This penalty (negative influence) is greater than the reward for one point increase in ESG rating.Practical implicationsThe results of this empirical study could be used by firms' managers to adjust strategies aimed at stock value growth and by investors to select an investment strategy to maximize return.Originality/valueThe impact of investments in CSR on stock excess return over a defined benchmark is assessed. The study reveals regional differences in the impact of CSR investment using a sample of Asian, European and North American firms. The authors apply a more advanced lagged CSR performance (d.ESG) assessment based on the methodology of Zhang and Rajagopalan (2010).

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“…Recent studies agree that ESG disclosure increases corporate transparency and hence improves capital investment efficiency by mitigating under-and over-investment problems [8,104]. In addition, there is greater interest in examining the impact of ESG disclosure on ESG ratings [105][106][107][108].…”

Section: Current Topics and Recommendations For Future Researchmentioning

confidence: 99%

Bibliometric analysis and systematic review of environmental, social, and governance disclosure papers: current topics and recommendations for future research

Ellili

2022

Environ. Res. Commun.

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This study analyzes the literature on environmental, social, and governance (ESG) disclosure by applying a bibliometric analysis of documents published in the Scopus database. Bibliometric analysis allows researchers to highlight the theoretical foundations of a specific research field, identify the main findings of previous studies, and determine future research ideas. This analysis was based on bibliometric authors’ citation analysis, bibliometric papers’ co-citation analysis, bibliometric references’ co-citation analysis, bibliometric journals’ co-citation analysis, co-occurrence keywords cartography analysis, trend and evolution analyses of ESG disclosure publications over the years, and qualitative content analysis. This study reviews 161 documents on ESG disclosure published in the Scopus database. Bibliometric analysis was conducted using VOSviewer, evolution analysis was performed using CiteSpace, and content analysis was performed using Wordstat. The study identified four major clusters: corporate social responsibility, corporate strategy, financial performance, and environmental economics. It also highlights the increasing number of citations and documents related to ESG disclosures. In addition, the journal of “Business Strategy and the Environment” significantly contributes to the ESG disclosure research field in terms of number of papers and citations. Additionally, this study highlights various future research opportunities in this field. The findings of this study have practical implications for ESG disclosure, such as the impact of integrating ESG into a company’s business strategy on corporate and financial policies. This study is the only one to review key topics on ESG disclosure that can be largely used for ESG practices. This study provides an overview of how the literature on ESG disclosure has developed, as well as a summary of the most influential authors along with countries, organizations, and journal sources. This offers the opportunity for future research to focus on this topic.

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Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings

Cited by 32 publications

References 53 publications

Board gender diversity and corporate social responsibility (CSR) disclosure in different disclosure environments

Board gender diversity and corporate social responsibility (CSR) disclosure in different disclosure environments

Market reaction to firms' investments in CSR projects

Bibliometric analysis and systematic review of environmental, social, and governance disclosure papers: current topics and recommendations for future research

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