ESG Performance and Disclosure: A Cross-Country Analysis

25 Pages Posted: 21 Jul 2020

See all articles by Florencio Lopez de Silanes

Florencio Lopez de Silanes

SKEMA Business School; National Bureau of Economic Research (NBER)

Joseph A. McCahery

Tilburg University - School of Law; European Banking Center (EBC); Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI)

Paul C. Pudschedl

Tilburg University - Department of Business Law; Tilburg Law and Economics Center (TILEC); University of Applied Sciences Wiener Neustadt - Finance Department

Multiple version iconThere are 2 versions of this paper

Date Written: March 2020

Abstract

We use a unique dataset to examine the link between environmental, social and governance (“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.

Suggested Citation

Lopez de Silanes, Florencio and McCahery, Joseph A. and Pudschedl, Paul C., ESG Performance and Disclosure: A Cross-Country Analysis (March 2020). Singapore Journal of Legal Studies, Mar. 2020, pp 217-241, Available at SSRN: https://ssrn.com/abstract=3649896

Florencio Lopez de Silanes (Contact Author)

SKEMA Business School ( email )

Avenue Willy Brandt, Euralille
Lille, 59777
France

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Joseph A. McCahery

Tilburg University - School of Law; European Banking Center (EBC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands
+31-(0)13-466-2306 (Phone)
+31-(0)13-466-2323 (Fax)

Tilburg Law and Economics Center (TILEC)

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Tilburg, 5000 LE
Netherlands

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Paul C. Pudschedl

Tilburg University - Department of Business Law ( email )

Netherlands

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

University of Applied Sciences Wiener Neustadt - Finance Department ( email )

Wiener Neustadt
Austria

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