ESG Performance and Disclosure: A Cross-Country Analysis
52 Pages Posted: 20 Dec 2019 Last revised: 7 Jan 2020
Date Written: December 18, 2019
We use a unique dataset to examine the link between ESG disclosure and quality through a cross-country comparison of disclosure requirements and stewardship codes. We find a strong relationship between the extent of ESG disclosure and the quality of a firm’s disclosure. Furthermore, we find that ESG is correlated with decreased risk. This result suggests that firms with good ESG scores are simply disclosing more information. Finally, we show that ESG scores have little or no impact on risk-adjusted financial performance.
Keywords: ESG, Sustainable Finance, Stewardship Codes, Financial Performance, Disclosure
JEL Classification: G12, G14, G15, G23, G32, M1, M2, M4
Suggested Citation: Suggested Citation