The relationship between corporate governance and environmental social governance disclosure: a case of Euro-Asian firms

Abstract

Despite the clear commitment of major companies around the world to the ESG disclosure, this study aims to explore this gap by examining the extent to which listed companies have reported on the ESG Disclosure since the approval. This paper aims to explore whether some internal and external factors affect the environmental, social and governance disclosure. It also reveals how companies that publish non-financial reports are increasingly publishing ESG Disclosure. The methodology proposed will draw on the multidimensional scaling as a multivariate assessment tool to evaluate and prioritize the effect of corporate governance on the environmental, social and governance disclosure. This paper uses a cross-country sample of 455 listed firms located in forty countries over the period 2010–2018. Interestingly, the results that have been found highlight the importance of the effect of the Global Compact membership, the adoption the GRI Standards, the higher level of independence of audit committee; the ESG Performance and the CSR strategy improve the ESG disclosure. This study adds to the existing body of accounting knowledge in several dimensions. Indeed, this is one of the little studies that investigate in the effect of corporate governance on the environmental, social and governance disclosure of Euro-Asian firms