The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence

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...

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Autores principales:	Yasin Seker, Evren Dilek Şengür
Formato:	article
Lenguaje:	EN
Publicado:	Vilnius University Press 2021
Materias:	Financial reporting quality ESG performance Environmental Social Governance Commerce HF1-6182 Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/2de9ab892c1b4dc29eb2dce9efe653ab
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spelling	oai:doaj.org-article:2de9ab892c1b4dc29eb2dce9efe653ab2021-11-25T09:30:35ZThe Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence10.15388/Ekon.2021.100.2.91392-12582424-6166https://doaj.org/article/2de9ab892c1b4dc29eb2dce9efe653ab2021-11-01T00:00:00Zhttps://www.zurnalai.vu.lt/ekonomika/article/view/24365https://doaj.org/toc/1392-1258https://doaj.org/toc/2424-6166 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. Yasin SekerEvren Dilek ŞengürVilnius University PressarticleFinancial reporting qualityESG performanceEnvironmentalSocialGovernanceCommerceHF1-6182Economics as a scienceHB71-74ENEkonomika, Vol 100, Iss 2 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Financial reporting quality ESG performance Environmental Social Governance Commerce HF1-6182 Economics as a science HB71-74
spellingShingle	Financial reporting quality ESG performance Environmental Social Governance Commerce HF1-6182 Economics as a science HB71-74 Yasin Seker Evren Dilek Şengür The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence
description	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.
format	article
author	Yasin Seker Evren Dilek Şengür
author_facet	Yasin Seker Evren Dilek Şengür
author_sort	Yasin Seker
title	The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence
title_short	The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence
title_full	The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence
title_fullStr	The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence
title_full_unstemmed	The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence
title_sort	impact of environmental, social, and governance (esg) performance on financial reporting quality: international evidence
publisher	Vilnius University Press
publishDate	2021
url	https://doaj.org/article/2de9ab892c1b4dc29eb2dce9efe653ab
work_keys_str_mv	AT yasinseker theimpactofenvironmentalsocialandgovernanceesgperformanceonfinancialreportingqualityinternationalevidence AT evrendileksengur theimpactofenvironmentalsocialandgovernanceesgperformanceonfinancialreportingqualityinternationalevidence AT yasinseker impactofenvironmentalsocialandgovernanceesgperformanceonfinancialreportingqualityinternationalevidence AT evrendileksengur impactofenvironmentalsocialandgovernanceesgperformanceonfinancialreportingqualityinternationalevidence
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The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence

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