“The Effects of Mandatory ESG Disclosure Around the World” (2024), by Philipp Krueger et al. Business and Management research paper. Original abstract below, unchanged. No free PDF was found.

The Effects of Mandatory ESG Disclosure Around the World

Philipp Krueger, Zacharias Sautner, Dragon Yongjun Tang et al. · May 4, 2024 · Business and Management

Abstract

We compile a novel data set on mandatory environmental, social, and governance (ESG) disclosure around the world to analyze the stock liquidity effects of such disclosure mandates. We document a positive effect of ESG disclosure mandates on firm‐level stock liquidity. The effects are strongest if the disclosure requirements are implemented by government institutions, not on a comply‐or‐explain basis, and coupled with strong enforcement by informal institutions. Firms with weaker information environments benefit more from ESG disclosure mandates. Our results support the view that ESG disclosure regulation improves the information environment and has beneficial capital market effects.

Source page DOI: 10.1111/1475-679x.12548