ESG Disclosure and Employee Turnover

Aziza Garsaa and Elisabeth Paulet ()
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Aziza Garsaa: ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine
Elisabeth Paulet: ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine

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Abstract: We explored how company transparency, as measured by ESG (Environmental, Social and Governance) disclosure, affected the employee turnover of 212 multinational corporations that were listed in the European capital market during the 2010-2017 period. We also examined the role of the business environment by looking at the company's ESG reporting system and its economic sector. To analyze how ESG disclosure affected employee turnover at any point of its conditional distribution, we used a panel data quantile regression model. ESG disclosure was found to be negatively associated with employee turnover. Employee turnover, as well as the extent to which it is affected by ESG disclosure, was found to depend strongly on the conditional distribution of the turnover rate, the sector and whether ESG disclosure is mandatory or voluntary. Our findings were confirmed by a robustness check analysis. In conclusion, the relationship between company transparency and employee turnover depends strongly on the institutional context and, especially, on disclosure regulation. The more a company is scrutinized, the more it will try to be socially responsible to maintain and/or improve its reputation and thus reassure and satisfy its stakeholders.

Keywords: ESG disclosure; employee satisfaction; employee turnover; panel data fixed-effect quantile regression; Divulgation ESG; Satisfaction des employés; rotation du personnel; régression quantile; données de panel (search for similar items in EconPapers)
Date: 2023-03-21
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Published in Relations Industrielles / Industrial Relations, 2023, 77 (4), 23 p. ⟨10.7202/1097695ar⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04058078

DOI: 10.7202/1097695ar

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