ESG Performance and Disclosure: A Cross-Country Analysis
, Joseph McCahery
, Paul Pudschedl
2020, Singapore Journal of legal studies, 481, pp.217-241
Résumé
We use a unique dataset to examine the link between ESG disclosure and quality through a cross-country comparison of disclosure requirements and stewardship codes. We find a strong relationship between the extent of ESG disclosure and the quality of a firm’s disclosure. Furthermore, we find that ESG is correlated with decreased risk. This result suggests that firms with good ESG scores are simply disclosing more information. Finally, we show that ESG scores have little or no impact on risk-adjusted financial performance.