THE IMPACT OF ESG DISCLOSURE ON STOCK PRICE SYNCHRONICITY

Abstract

Against the dual context of global sustainable development and the high-quality development of China’s capital market, ESG disclosure has gradually become an important mechanism for mitigating information asymmetry and improving resource allocation efficiency, which carries substantial theoretical and practical importance for fostering the stable and effective functioning of the capital market. Using panel data of Chinese A-share listed firms spanning from 2011 to 2023 as the research sample, this paper empirically investigates the impact of ESG disclosure on stock price synchronicity and its heterogeneous effects across different firm characteristics. The empirical results demonstrate that ESG disclosure significantly reduces stock price synchronicity, and this negative impact exhibits noticeable heterogeneity: it is more conspicuous in non-manufacturing enterprises and state-owned enterprises. Further dimensional analysis reveals that environmental (E) and social (S) dimensions play a significant role in lowering stock price synchronicity, whereas the corporate governance (G) dimension shows no significant effect. By distinguishing industry attributes, property rights and three-dimensional differences of ESG, this study enriches research on the capital market consequences of ESG disclosure and supplements the influencing factors of stock price synchronicity, providing empirical evidence for regulatory authorities and listed companies to improve information disclosure quality.