Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firmsAntonella Francesca Cicchiello, Ferdinando Marrazza and Salvatore Perdichizzi Corporate Social Responsibility and Environmental Management, 2023, vol. 30, issue 3, 1121-1128 Abstract: The aim of this article is to analyse the effect of non‐financial reporting regulation on firms' Environmental, Social, and Governance (ESG) performance, commitment and effectiveness. Specifically, we explore the implications of the European Non‐Financial Reporting Directive (NFRD) mandating disclosure on non‐financial and diversity information by certain large companies. To identify the effect of the EU disclosure regulation on firms' ESG scores, we performed a differences‐in‐differences estimation using a sample of EU firms as the treated group and a sample of US firms as the control group in the period 2015–2020. Overall, our findings suggest that regulatory efforts to increase the transparency of the social and environmental impacts of firms' activities on society are effective at improving disclosure commitment and effectiveness. Hence, regulation supports the adoption of ESG strategies to the benefit of the whole society. The study provides a fresh comparison between regulating or not the ESG information market, drawing suggestions for future policy. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:30:y:2023:i:3:p:1121-1128 Access Statistics for this article More articles in Corporate Social Responsibility and Environmental Management from John Wiley & Sons |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.