The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence
| Autor: | Yasin Şeker, Evren Dilek Şengür |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Finance
Governance business.industry media_common.quotation_subject Corporate governance Initial sample Commerce Sample (statistics) ESG performance Financial reporting quality Missing data Environmental Social HF1-6182 Economics as a science Quality (business) Performance indicator Business General Economics Econometrics and Finance HB71-74 media_common Panel data |
| Zdroj: | Ekonomika, Vol 100, Iss 2 (2021) |
| ISSN: | 2424-6166 1392-1258 |
| Popis: | This study investigates the relationship between environmental, social, and governance (ESG) performance and financial reporting quality (FRQ) through the use of data from Datastream, Refinitive Eikon and ASSET4 databases. The initial sample of the study covers all available firms in ASSET4. After eliminating firms with missing data, the final sample of the study consists of 16,072 firm-year observations from 35 countries, covering the years from 2010 to 2017. Several FRQ proxies and firms’ ESG performance indicators are used in the study. The panel regression findings reveal that firms’ ESG performance has a positive impact on FRQ. In other words, it has been found that improving the ESG performance of firms yields higher FRQs. As for ESG pillars, this study finds a positive and statistically significant relationship between FRQ and environmental and governance pillars. The study extends the literature by providing international evidence not only about the aggregate effects of firms’ ESG performance on FRQ but also the effects of each of the three ESG pillars on FRQ. |
| Databáze: | OpenAIRE |
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