Does country sustainability improve firm ESG reporting transparency? The moderating role of firm industry and CSR engagement

Thi Hong Van Hoang, Linh Pham and Thanh Thi Phuong Nguyen

Economic Modelling, 2023, vol. 125, issue C

Abstract: Sustainable development is a crucial topic of public debate, and the private sector is essential to achieving the United Nations' 17 Sustainable Development Goals (SDGs). Previous research has shown that Environmental, Social, and Governance (ESG) reporting can encourage firms to better integrate sustainability in their strategy. In such context, this study investigates the relationship between a country's SDG achievements and firms' engagement in ESG reporting by analysing a large sample of 1327 firms in 14 countries from 2016 to 2020. Our main finding reveals a significant positive relationship between a country's SDG achievement and firms' ESG disclosure transparency scores. This effect is particularly strong for firms in light industries, firms with a higher Corporate Social Responsibility (CSR) engagement, and those with the presence of women on their boards of directors. We conducted multiple sensitivity analyses, and our findings are robust, which can provide useful recommendations for firms, investors, and policymakers.

Keywords: Sustainable development goals; ESG reporting; CSR; Governance (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:125:y:2023:i:c:s0264999323001633

DOI: 10.1016/j.econmod.2023.106351

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