The Impact of ESG Information Disclosure on Corporate Value: A Literature Review

Abstract

In recent decades, with the global trend of improving ESG regulatory rules and expanding mandatory disclosure for listed firms, the value effect of ESG information disclosure has remained controversial in academia. Accordingly, it is necessary to review relevant literature to sort conflicting findings and clarify the actual economic impact of ESG disclosure. Focusing on the relationship between ESG information disclosure and corporate value, this paper reviews empirical studies conducted across different countries and institutional contexts. The reviewed literature is categorized into three results: positive relationship, negative relationship, and insignificant relationship. Conflicting conclusions are caused by diverse measurement indicators, sample features, inconsistent rating criteria, and institutional gaps. Three major influencing channels, including information asymmetry relief, stakeholder collaboration, and innovation promotion, are summarized, and obvious heterogeneity exists in firm ownership, region, and pollution type. Empirically, this paper points out existing research defects and proposes specific suggestions for future detailed empirical and cross-country research.