ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China
The Environmental, social, and governance (ESG) disclosure is an important aspect of firms’ strategies. Therefore, exploring how to facilitate the firms’ ESG disclosure is necessary. This paper examines the role of multiple large shareholders (MLS, hereafter) in facilitating a firm’s ESG disclosure....
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-01-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1063501/full |
| _version_ | 1797944027807481856 |
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| author | Liang Wang Xuchang Fan Hongyu Zhuang |
| author_facet | Liang Wang Xuchang Fan Hongyu Zhuang |
| author_sort | Liang Wang |
| collection | DOAJ |
| description | The Environmental, social, and governance (ESG) disclosure is an important aspect of firms’ strategies. Therefore, exploring how to facilitate the firms’ ESG disclosure is necessary. This paper examines the role of multiple large shareholders (MLS, hereafter) in facilitating a firm’s ESG disclosure. Using a sample of Chinese listed firms during 2011–2020, we compare the ESG disclosure of firms having MLS with that of firms having a single large shareholder (SLS, hereafter) and find that having MLS associated with significantly higher ESG disclosure. After addressing endogeneity and altering the measurement of MLS, the benchmark results still hold after. Additional analysis shows that MLS exerts a more prominent positive effect on ESG disclosure in SOEs. We also examine the role of the other large shareholders in facilitating firms’ ESG disclosure. Our findings reveal a bright side of MLS: it facilitates ESG disclosure by monitoring. Therefore, this paper’s conclusion sheds new light on the bright side of MLS from the perspective of firms’ ESG disclosure and provides insights into how to improve ESG disclosure. |
| first_indexed | 2024-04-10T20:33:17Z |
| format | Article |
| id | doaj.art-c5077929dea147909eda4acba3f0833c |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-10T20:33:17Z |
| publishDate | 2023-01-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-c5077929dea147909eda4acba3f0833c2023-01-25T05:21:30ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2023-01-011110.3389/fenvs.2023.10635011063501ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from ChinaLiang Wang0Xuchang Fan1Hongyu Zhuang2College of Business, Shanghai University of Finance and Economics, Shanghai, ChinaManagement College, Ocean University of China, Qingdao, ChinaCollege of Business, Shanghai University of Finance and Economics, Shanghai, ChinaThe Environmental, social, and governance (ESG) disclosure is an important aspect of firms’ strategies. Therefore, exploring how to facilitate the firms’ ESG disclosure is necessary. This paper examines the role of multiple large shareholders (MLS, hereafter) in facilitating a firm’s ESG disclosure. Using a sample of Chinese listed firms during 2011–2020, we compare the ESG disclosure of firms having MLS with that of firms having a single large shareholder (SLS, hereafter) and find that having MLS associated with significantly higher ESG disclosure. After addressing endogeneity and altering the measurement of MLS, the benchmark results still hold after. Additional analysis shows that MLS exerts a more prominent positive effect on ESG disclosure in SOEs. We also examine the role of the other large shareholders in facilitating firms’ ESG disclosure. Our findings reveal a bright side of MLS: it facilitates ESG disclosure by monitoring. Therefore, this paper’s conclusion sheds new light on the bright side of MLS from the perspective of firms’ ESG disclosure and provides insights into how to improve ESG disclosure.https://www.frontiersin.org/articles/10.3389/fenvs.2023.1063501/fullESG disclosuremultiple large shareholdersagency costownership structuremonitoring effectcollusion effect |
| spellingShingle | Liang Wang Xuchang Fan Hongyu Zhuang ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China Frontiers in Environmental Science ESG disclosure multiple large shareholders agency cost ownership structure monitoring effect collusion effect |
| title | ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China |
| title_full | ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China |
| title_fullStr | ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China |
| title_full_unstemmed | ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China |
| title_short | ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China |
| title_sort | esg disclosure facilitator how do the multiple large shareholders affect firms esg disclosure evidence from china |
| topic | ESG disclosure multiple large shareholders agency cost ownership structure monitoring effect collusion effect |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1063501/full |
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