Socio-Economic Factors Affecting ESG Reporting Call for Globally Agreed Standards

Maria Krambia-Kapardis, Christos S. Savva () and Ioanna Stylianou
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Maria Krambia-Kapardis: Department of Management, Entrepreneurship and Digital Business, Cyprus University of Technology, Limassol 3036, Cyprus
Christos S. Savva: Department of Finance, Accounting and Management Science, Cyprus University of Technology, Limassol 3036, Cyprus
Ioanna Stylianou: School of Business and Management, University of Central Lancashire, Larnaka 7080, Cyprus

Sustainability, 2023, vol. 15, issue 20, 1-35

Abstract: The ESG ecosystem has evolved over the years, and macro decisions have had an impact on the implementation and reporting of the ESG Index. This paper aims to first investigate if all the components of the ESG index are equally reported and secondly to identify the impact of socio-economic and political variables on the composite ESG index. To achieve this aim, the authors have utilized macroeconomic variables over the period 1984–2020 for 139 countries from the Refinitiv database and have constructed composite indices based on principal component analysis for the ESG components using a panel fixed effects model with structural breaks. The findings have significant policy implications, emphasizing the importance of globally accepted standards. Finally, by addressing the ESG at a macro level, it provides the context within which to consider the adoption of the ESG ecosystem diachronically, thus providing the backdrop for considering the implementation of the ESG at the micro level.

Keywords: ESG; structural breaks; corruption; political institutions; economic institutions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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