ESG performance and firm value: The moderating role of disclosure

Ali Fatemi, Martin Glaum and Stefanie Kaiser

Global Finance Journal, 2018, vol. 38, issue C, 45-64

Abstract: This study investigates the effect of environmental, social, and governance (ESG) activities and their disclosure on firm value. We find that ESG strengths increase firm value and that weaknesses decrease it. ESG disclosure, per se, decreases valuation. But more importantly, we find that disclosure plays a crucial moderating role by mitigating the negative effect of weaknesses and attenuating the positive effect of strengths.

Keywords: ESG; CSR; Disclosure; Firm value (search for similar items in EconPapers)
JEL-codes: G30 G32 M41 Q51 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (215)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:38:y:2018:i:c:p:45-64

DOI: 10.1016/j.gfj.2017.03.001

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