Friendly Signal of “Good Governance”: Will Corporate Governance Promote ESG Disclosure

Keyu Meng

doi:10.54691/bcpbm.v49i.5439

Authors

Keyu Meng

DOI:

https://doi.org/10.54691/bcpbm.v49i.5439

Keywords:

Corporate Governance; ESG Disclosure; Listed Companies; Ownership.

Abstract

Up against the background of developing countries, this study empirically researches the relationship between corporate governance and environmental, social, and governance (ESG) disclosure based on samples of Chinese listed companies. The results show that the governance quality of listed companies significantly affects ESG disclosure. Through further heterogeneity analysis, this paper reveals the key role of enterprise nature when influencing corporate governance on ESG disclosure. Specifically, under the same governance capability, ESG disclosure of state-owned enterprises tends to be better than that of non-state-owned ones. From the perspective of corporate governance, this study not only enriches the understanding of the influencing factors of ESG disclosure, but also sheds new light on optimizing corporate governance and improving sustainable development. Meanwhile, policymakers have been provided with enlightenment to make decisions in setting policies and environmental standards.

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