Relationships between ESG disclosure and economic growth: A critical review

Artikel

The literature on the relationship between ESG disclosure and economic growth is relatively non-existent. Thus, this paper highlights the importance of taking this relationship into account in current sustainable policies. The main objective of extra-financial Disclosure is to mitigate Information Asymmetry. During this discussion, we show that ESG disclosure may not reduce information asymmetry as intended. We also show that complete extra-financial disclosure targeted by current policies is not optimal. There is an optimal disclosure threshold depending on the level of sustainable development of the country, the size of the companies and their development potential. Moreover, current ESG disclosure policies direct economies towards less polluting sectors, which is not necessarily optimal from an economic standpoint and could negatively affect economic activity and, therefore, the population's well-being. We also provide some policy implications and suggestions for future research on the ESG disclosure literature.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 15 ; Year: 2022 ; Issue: 11 ; Pages: 1-23

Classification and Topics

• Classification: Management ; Sustainable Development ; Economic Growth and Aggregate Productivity: General ; Institutions and the Macroeconomy ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Economic Impacts of Globalization: Environment ; Corporate Finance and Governance: Government Policy and Regulation ; Corporate Culture; Diversity; Social Responsibility
• Subject: ESG ; economic growth ; greenwashing ; sustainable investments ; regulation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hassani, Bertrand Kian ; Bahini, Yacoub
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2022

Further information

• DOI: doi:10.3390/jrfm15110538
• Handle: http://hdl.handle.net/10419/275015
• Last update: 10.03.2025, 11:41 AM CET