Investigating the relationship between environmental and social disclosures and anti-corruption disclosure: the role of corporate governance. Evidence from France

Roua Radhouani and Aymen Ajina

Journal of Financial Regulation and Compliance, 2026, vol. 34, issue 5, 754-776

Abstract: PurposeThis paper aims to examine how environmental and social (E&S) disclosures influence ACD in France, explores the role of corporate governance (board independence, board size and executive directors) and evaluates the impact of the Grenelle II Law, a French regulation promoting corporate sustainability and transparency.Design/methodology/approachThe authors analyze 142 French listed firms over 2010–2020 using panel regressions and a 150-keyword content analysis to measure ACD. A Difference-in-differences approach assesses how the Grenelle II Law affected the relationship between E&S disclosures and ACD.FindingsResults show a positive association between E&S and ACD: firms more transparent in E&S reporting also disclose more on anti-corruption. Board independence and size further enhance ACD, and the E&S–ACD relationship strengthens following the full implementation of the Grenelle II Law.Practical implicationsIntegrating E&S strategies can increase ACD and stakeholder trust. Strong corporate governance, particularly independent and larger boards, supports transparency, providing guidance for policymakers to align sustainability and anti-corruption practices and helping investors assess firm ethics and governance.Originality/valueThis study is among the first to investigate how E&S disclosures and governance influence ACD in France, a leading country in sustainability regulation. It highlights the effect of the Grenelle II Law on improving corporate transparency and introduces a novel 150-keyword content analysis tool for ACD.

Keywords: ACD; E&S disclosures; Corporate governance; Content analysis; Grenelle II Law (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:jfrc-06-2025-0189

DOI: 10.1108/JFRC-06-2025-0189

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