News or noise? ESG disclosure and stock price synchronicity

Financial institutions should prioritize the adoption of comprehensive Environmental, Social, and Corporate Governance (ESG) disclosure policies to improve their market reputation and decrease capital expenditures. The current study’s research objective is to investigate the impact of both inside and outside executives on the successive adoption of ESG strategies, based on the sustainable leadership theoretical framework and the bottom-up corporate governance theory. Data for the current study were obtained from the Refinitiv Eikon database and analyzed through using the entropy weight and TOPSIS techniques. The research suggests that including fully autonomous board members has the potential to improve the transparency of firms’ ESG criteria. This result was derived from an analysis of data pertaining to the behavior of CEOs and non-executives at the company level in Fiscal Year (FY) 2023. The verification of the soundness and dependability of this finding has been carried out by scrutinizing the problem of endogeneity and diverse techniques of data representation. Furthermore, our study has disproven the idea that having CEOs on the board of directors may significantly improve the ESG performance of financial institutions. Consequently, the research proposes that adopting a strict policy of board independence has the capacity to alleviate the environmental, social, and governance repercussions that arise from the control of internal executives, namely CEOs.

show abstract

A New Direction in Human Resources Management and ESG

Sklavos,

Theodossiou,

Papanikolaou

et al. 2024

Advances in Human Resources Management and Organizational Development

View full text Add to dashboard Cite

This chapter delineates a strategic framework designed for professionals who seek to effectively incorporate Environmental, Social, and Governance (ESG) factors into their business models. As global consciousness regarding sustainability issues intensifies, organizations encounter mounting pressure to implement practices that are consistent with ESG principles. The framework presented herein provides a systematic methodology for navigating this intricate landscape, utilizing ESG integration to enhance financial performance, mitigate risks, bolster reputation, and promote stakeholder engagement. By conducting a thorough assessment of pertinent ESG issues, ensuring alignment with business strategy, establishing robust measurement and reporting systems, engaging proactively, and committing to ongoing improvement, financial professionals can strategically position their organizations for sustained success in an increasingly dynamic market environment

show abstract

News or noise? ESG disclosure and stock price synchronicity

Cited by 3 publications

References 73 publications

Navigating transparency: The interplay of ESG disclosure and voluntary earnings guidance

Navigating transparency: The interplay of ESG disclosure and voluntary earnings guidance

Evaluating Executives and Non-Executives’ Impact toward ESG Performance in Banking Sector: An Entropy Weight and TOPSIS Method

A New Direction in Human Resources Management and ESG

Contact Info

Product

Resources

About