The Dynamics of Performance Feedback and ESG Disclosure: A Behavioral Theory of the Firm Perspective

IF 8.3 2区管理学 Q1 BUSINESS

Corporate Social Responsibility and Environmental Management Pub Date : 2024-12-25 DOI:10.1002/csr.3083

Richard Yeaw Chong Seow

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Abstract

While companies face increasing pressure from stakeholders to enhance their environmental, social, and governance (ESG) transparency, they are continually weighing the benefits and costs of ESG engagements. This study provides a novel exploration of how performance feedback impacts ESG disclosure among Malaysian public-listed firms, utilizing the behavioral theory of the firm and performance feedback theory. Analyzing data from 72 companies over the period of 2018 to 2022, and employing a fixed effects model with cluster robust errors, the study reveals that firms underperforming relative to their financial aspirations tend to reduce ESG transparency. In contrast, firms that exceed their performance benchmarks show no significant increase in ESG disclosure. These findings underscore the nuanced relationship between financial performance and ESG reporting, offering valuable insights for corporate leaders and policymakers seeking to strengthen ESG frameworks and promote more consistent reporting practices.

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来源期刊

Corporate Social Responsibility and Environmental Management Multiple-

CiteScore

17.20

自引率

16.30%

发文量

189

期刊介绍： Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas. The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.