The impact of ESG disclosure on firm value: evidence from the tourism industry

Iuliana Mădalina Petrică (Papuc) ()
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Iuliana Mădalina Petrică (Papuc): Bucharest University of Economic Studies, Bucharest, Romania

CACTUS - The Tourism Journal for Research, Education, Culture and Soul, 2025, vol. 31, issue 1

Abstract: In light of recent challenges, including climate change initiatives, the need for natural resource preservation, and the impact of the COVID-19 pandemic, the significance of Environmental, Social, and Corporate Governance(ESG) disclosure has reached new heights. The tourism industry, characterized by its reliance on natural resources and interaction with local communities, stands out as a sector where sustainability initiatives are essential not only to mitigate negative impacts but also to improve stakeholder relations. The data was collected from Thomson Reuters' Eikon platform and covers a sample of 117 tourism companies from 2020 to 2022. Using SPSS statistical software, regression modelling was applied to determine the extent to which ESG information is correlated with market value. This paper highlights the key findings, including a significant association between ESG disclosure and firm value in the tourism sector, with ESG values explaining 59.4% of the variation in market value. Positive impacts were observed in two industry subcategories- Hotels, Motels & Cruise Lines and Leisure& Recreation, while Restaurants & Bars showed no significant effect. The originality of this study consists of it examination of the impact of ESG not only within the tourism industry as a whole, but also across its three specific sub-categories, providing a comprehensive perspective on the topic. It contributes to the broader discourse on sustainable business practices and has implications for both companies and investors seeking to harmonise financial and sustainability objectives. Future research could benefit from qualitative approaches to better understand the nuanced relationship between ESG practices and corporate value.

Keywords: ESG; firm value; sustainable tourism; sustainability; market value (search for similar items in EconPapers)
JEL-codes: L83 M14 Q56 (search for similar items in EconPapers)
Date: 2025
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