We examine the effects of mandatory ESG disclosure around the world using a novel dataset. Mandatory ESG disclosure increases the availability and quality of ESG reporting, especially among firms with low ESG performance. Mandatory ESG reporting has...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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VS 544
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We examine the effects of mandatory ESG disclosure around the world using a novel dataset. Mandatory ESG disclosure increases the availability and quality of ESG reporting, especially among firms with low ESG performance. Mandatory ESG reporting has in turn beneficial effects on firm’s information environment: analysts’ earnings forecasts become more accurate and less dispersed after ESG disclosure becomes mandatory. On the real side, negative ESG incidents become less likely, and stock price crash risk declines, after mandatory ESG disclosure is enacted. These findings suggest that mandatory ESG disclosure has beneficial informational and real effects
We provide the first, large sample evidence on firms’ voluntary, third-party verification of environmental and social metrics in ESG reports (“ESG assurance”) in the United States. Focusing on S&P 500 firms from 2010-2020, we document a striking...
mehr
ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Fernleihe:
keine Fernleihe
We provide the first, large sample evidence on firms’ voluntary, third-party verification of environmental and social metrics in ESG reports (“ESG assurance”) in the United States. Focusing on S&P 500 firms from 2010-2020, we document a striking increase in ESG assurance. Unlike financial audits, there is significant heterogeneity in many dimensions of ESG assurance within the ESG report, including choice of metrics assured, level of assurance, and assuror identity, among others. We show that firms’ decisions to obtain ESG assurance is primarily driven by their adoption of ESG reporting frameworks, such as GRI, and to a lesser extent, peer effects. On the contrary, firm characteristics documented in prior literature—which primarily uses international settings and early periods—are not primary determinants. Overall, the evidence suggests that assuror expertise in ESG reporting frameworks and measurement standards relates to assurance and supports the disclosure of environmental and social metrics in ESG reports