Financial Sustainability in the Context of Environmental, Social, and Governance (ESG) Disclosure: A Comprehensive Analysis of Chinese- listed Firms: Financial Sustainability in the Context of Environmental, Social, and Governance (ESG) Disclosure

Muhammad Istiaque Hossain*, Baolei Qi, Mohamed Marie, Mohamed Omran, Yucheng Chen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This study examines the pivotal role of ESG (Environmental, Social, and Governance) disclosure in the financial sustainability of Chinese-listed companies, addressing a significant gap in the literature regarding the impact of corporate governance mechanisms on this relationship. Utilizing a comprehensive dataset spanning from 2009 to 2021, the findings indicate that while ESG disclosure generally enhances financial sustainability, the quality of audits and the independence of boards significantly weaken this relationship by increasing transparency and mitigating managerial opportunism. The robustness of these results has been confirmed through rigorous testing. The study underscores the importance of integrating corporate governance mechanisms into firms' ESG disclosure strategies, aligning with stakeholder theory to optimize financial sustainability. This research provides theoretical and practical contributions by deepening the understanding of governance factors in ESG reporting and their strategic influence on long-term corporate financial health.
Original languageEnglish
JournalCorporate Social Responsibility and Environmental Management
VolumeForthcoming
Early online date27 Nov 2024
Publication statusE-pub ahead of print - 27 Nov 2024

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