Environmental, Social, and Governance (ESG) disclosure: A literature review

Tsang, Albert; Frost, Tracie; Cao, Huijuan

doi:10.1016/j.bar.2022.101149

Cited by 178 publications

(80 citation statements)

References 130 publications

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“…ESG disclosure, which focuses on CSR and sustainability reporting, has become of utmost importance to firms' stakeholders (Kamaludin et al, 2022; Tsang et al, 2022) as the overall performance of a firm is stipulated in both the financial (for example, sales trend and business growth) and non‐financial aspects (such as ESG reporting disclosure) of reporting. ESG reporting is important in protecting the interests of its stakeholders and is utilized as an effective corporate communication tool to disclose a firm's environmental responsibilities (De Masi et al, 2021), thus, ESG disclosures have become essential decision‐making tools for stakeholders (Gulzar et al, 2019).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Board gender diversity and environmental, social and governance (ESG) disclosure: Is it different for developed and developing nations?

Wasiuzzaman

Subramaniam

2023

Corp Soc Responsibility Env

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This paper examines the influence of board gender diversity on the Environmental, Social and Governance (ESG) disclosure quality of energy firms. Particularly, the study evaluates the possible differences in the influence of board gender diversity on the ESG disclosure practice of firms in developed and developing nations. Previous studies have used single country based analysis and presented diverse results, however this study uses data from 48 countries from both developed and developing nations over a period of 13 years (from year 2004 to 2016). The study finds that, in general, female directors favorably influence the quality of disclosure of ESG and its individual components (except governance). However, sub‐sample analysis of firms in developed and developing nations finds that the relationships are significant only for the sample of firms in developed nations. The results show that there are differences in the role female directors play in influencing ESG disclosure for developed and developing countries, thus this study highlights the importance of accounting standards in strengthening the contribution of female directors on corporate boards, especially in developing countries. The study also highlights the need to assess ESG components separately, in addition to the overall component, when conducting studies on ESG.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Board gender diversity and environmental, social and governance (ESG) disclosure: Is it different for developed and developing nations?

Wasiuzzaman

Subramaniam

2023

Corp Soc Responsibility Env

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“…Although we anticipate a positive corporate response in the form of voluntary carbon disclosure to mandatory adoption of The Act, evidence from prior studies (Bowen et al, 1983;Blacconiere and Patten, 1994) also suggests that the reaction may vary. More specifically, evidence suggests that firms with more ESG activity will experience a greater increase in voluntary carbon disclosure; that is, the literature finds that firms' ESG performance is an important moderator of the relationship between ESG disclosure and its consequences (Tsang et al, 2023). It may be due to two reasons.…”

Section: Mandatory Carbon Reportingmentioning

confidence: 99%

Mandatory carbon reporting, voluntary carbon disclosure and ESG performance

Jiang,

Tang

2023

PAR

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Purpose This study aims to examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure. Mandatory adoption of The Act 2013 in UK is a compelling setting to examine this research question because it is an exogenous imposed event and is unlikely to be affected by disclosure choice. Design/methodology/approach This study uses a difference-in-differences research design to examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure. The treatment sample includes 451 UK firms subject to mandatory adoption of The Act 2013, and the control sample includes firms from 15 EU countries that did not mandate adoption during the sample period. Findings The authors document an increase in the quantity and quality of voluntary carbon disclosure following adoption of The Act 2013 in the treatment sample relative to the control sample. They also find that firms with better environmental, social and governance (ESG) performance experience a highly significant increase in voluntary carbon disclosure after adoption of The Act 2013. For firms from carbon-intensive vs less-carbon-intensive sectors, the results suggest that firms in carbon-intensive sectors experience a greater increase in the propensity of voluntary disclosure after adoption of The Act. Originality/value The authors examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure and the impact of firms’ ESG activity on the relationship between voluntary and mandatory carbon disclosure. To the best of the authors’ knowledge, this insight has never been documented in the literature.

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“…Existing research has found that firms' executives play a crucial role in determining whether to engage in socially responsible activities (Davidson et al, 2019), and executive characteristics significantly affect corporate social responsibility disclosure. For instance, compared to firms led by frugal CEOs, those led by materialistic CEOs exhibit lower social responsibility scores, fewer strengths, and more weaknesses (Tsang et al, 2022); female CEOs, compared to male CEOs, generally possess superior public qualities and are more stakeholder-oriented, leading to increased environmental information disclosure (Zhang et al, 2023). Executive compensation structure is a vital component of corporate governance; theoretically, it should have a significant impact on corporate ESG disclosure.…”

Section: Introductionmentioning

confidence: 99%

“…As the formulators, enforcers, and guardians of firms' information disclosure systems, executive teams represent a critical internal factor impacting firms' information disclosure practices (Cai et al, 2016; Huang et al, 2022; Tsang et al, 2022). Such behavioral motivations are frequently affected by remuneration structure elements, such as compensation disparities (Ge & Kim, 2020).…”

Section: Introductionmentioning

confidence: 99%

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

Zhang

Pan

Liu

et al. 2023

Corp Soc Responsibility Env

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This 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.

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Environmental, Social, and Governance (ESG) disclosure: A literature review

Cited by 178 publications

References 130 publications

Board gender diversity and environmental, social and governance (ESG) disclosure: Is it different for developed and developing nations?

Board gender diversity and environmental, social and governance (ESG) disclosure: Is it different for developed and developing nations?

Mandatory carbon reporting, voluntary carbon disclosure and ESG performance

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

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