ESG disclosure and corporate cost stickiness: Evidence from supply-chain relationships

Wei Jiang and Wenbin Yang

Economics Letters, 2024, vol. 238, issue C

Abstract: We investigate the effect of Environmental, social, and governance (ESG) disclosures by customer firms on suppliers’ cost stickiness in a supply-chain setting. Our findings indicate that ESG disclosures can mitigate suppliers' cost stickiness, mainly due to reduced optimistic expectations from suppliers' management. Further analysis reveals that the negative relationship intensifies with increased geographical and social distance between suppliers and customers, and when they belong to different industries.

Keywords: ESG disclosures; Cost stickiness; Supply-chain Relationships (search for similar items in EconPapers)
JEL-codes: G30 G31 M41 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:238:y:2024:i:c:s0165176524001800

DOI: 10.1016/j.econlet.2024.111697

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