Does climate governance moderate the relationship between ESG reporting and firm value? Empirical evidence from India

Mishra, Geeti; Patro, Archana; Tiwari, Aviral Kumar

doi:10.1016/j.iref.2024.01.059

International Review of Economics & Finance

2024

DOI: 10.1016/j.iref.2024.01.059

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Does climate governance moderate the relationship between ESG reporting and firm value? Empirical evidence from India

Geeti Mishra,

Archana Patro,

Aviral Kumar Tiwari

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Cited by 19 publications

References 109 publications

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ESG and firm performance: The effects of foreigners on board and export orientation

Wu,

Nguyen

2024

Bus Strat Dev

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This study investigates whether environmental, social, and governance (ESG) disclosures enhance industry‐adjusted firm performance and whether the presence of foreigners on board and export orientation affect this relationship. The Taiwan dataset from 2013 to 2020 indicates that ESG practices positively affect accounting‐ and market‐based performance (i.e., adjusted Tobin's Q and adjusted MTB ratio). However, ESG has no significant relationship with purely market‐based performance (i.e., adjusted Jensen Alpha and adjusted FF3). The results illustrate a significant joint effect of ESG with foreigners on board and export experience on accounting and market‐based performance. The findings provide deeper insight into the complex relationship between sustainability practices, ownership structures, and international businesses. Our findings remain consistent when using alternative estimation methods to account for endogeneity and selection bias.

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ESG and firm performance: The effects of foreigners on board and export orientation

Wu,

Nguyen

2024

Bus Strat Dev

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Stock market reaction to mandatory sustainability reporting: Does carbon‐intensity and environmental, social, and governance reputation matter?

Pandey,

Al‐ahdal,

Hashim

2024

Bus Strat Env

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With a sample of 679 listed firms, integrating the event study method and cross‐sectional analysis, we examine the stock market reaction to mandatory sustainability reporting regulation in India. We find that (1) on average, investors react positively to such announcements; (2) the impact varies across different sectors; (3) affected and unaffected firms do not posit significant differences; (4) carbon‐intensive firms are positively impacted; and (5) high environmental, social, and governance (ESG) performance is negatively associated with the event‐induced cumulative abnormal returns (CAR). One standard deviation change in ESG leads to −0.77%, −0.45%, and −0.61% significant changes in [+1,+5], [−5,+5], and [−7,+7] CAR, respectively. The findings align with the value relevance idea and the reputational risk theory but contradict the reservoir of goodwill hypothesis.

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Top management team stability and ESG greenwashing: Evidence from China

Deng,

Peng,

Albitar

et al. 2024

Bus Strat Env

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This study examines the relationship between top management team stability (STMT) and ESG greenwashing. Using a sample of Chinese listed companies for the period 2009–2022, we find that top management team stability has a negative effect on ESG greenwashing. Mechanism tests provide evidence that top management team stability reduces greenwashing by decreasing agency costs and improving the quality of information disclosure. Additional analysis reveals that this relationship is more pronounced for firms audited by non‐Big Four firms, non‐state‐owned enterprises, and firms with high executive shareholding. The study combines the characteristics of internal human capital with the efficiency of market information, offering a new perspective in the literature on ESG greenwashing.

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Does climate governance moderate the relationship between ESG reporting and firm value? Empirical evidence from India

Cited by 19 publications

References 109 publications

ESG and firm performance: The effects of foreigners on board and export orientation

ESG and firm performance: The effects of foreigners on board and export orientation

Stock market reaction to mandatory sustainability reporting: Does carbon‐intensity and environmental, social, and governance reputation matter?

Top management team stability and ESG greenwashing: Evidence from China

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