Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure

Maha Faisal Alsayegh, Rashidah Abdul Rahman and Saeid Homayoun
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Maha Faisal Alsayegh: Department of Accounting, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia
Rashidah Abdul Rahman: Department of Accounting, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia
Saeid Homayoun: Department of Accounting, University of Gavle, SE-801 76 Gavle, Sweden

Sustainability, 2020, vol. 12, issue 9, 1-20

Abstract: Within the environmental, social, and governance (ESG) disclosure–corporate sustainability performance (economic, environmental and social; EES) framework, our empirical analysis examined the impact of ESG information disclosure on EES sustainability performance among Asian firms from 2005 to 2017. The positive ESG disclosure–EES sustainability performance relationship found in this study provides evidence that disclosing the implementation of environment and social strategies within an effective system of corporate governance in the organization strengthens corporate sustainability performance. The results also show that environmental performance and social performance are significantly positively related to economic sustainable performance, indicating that the corporation’s economic value and creating value for society are interdependent. In line with the stakeholder theory and the shared value theory, ESG information disclosure to all stakeholders is an important factor in creating a competitive advantage for enhancing corporate sustainability performance.

Keywords: environmental, social, governance (ESG); corporate performance; sustainability; Asia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (75)

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