ESG and stock price crash risk revisited: Evidence from mandatory ESG disclosure policy in China

Jing Hao, Ran Sun, Xu Gong and Zhu, Xiaoyu (Ross)

Pacific-Basin Finance Journal, 2025, vol. 91, issue C

Abstract: This study examines how corporate environmental, social and governance (ESG) information disclosure impacts stock price crash risk (SPCR). Unlike previous studies, it finds that mandatory corporate ESG information disclosure has no significant effect on stock price crash risk in recent years. Heterogeneity analysis shows that ESG disclosure can effectively reduce stock price crash risk in firms with higher corporate governance levels or stronger external supervision. Further research reveals that ESG rating is a key factor in reducing stock price crash risk. This study provides new insights into the economic consequences of ESG disclosure and its underlying mechanisms in the current digital era.

Keywords: Stock price crash risk; ESG; corporate governance; information disclosure (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X25000666
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:91:y:2025:i:c:s0927538x25000666

DOI: 10.1016/j.pacfin.2025.102729

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().