The impact of ESG reporting on the cost of equity capital in India: The moderating role of external auditors

IF 1 Q3 MANAGEMENT

IIMB Management Review Pub Date : 2025-12-01 Epub Date: 2025-10-11 DOI:10.1016/j.iimb.2025.100615

Archana Patro , Geeti Mishra , Cheng-Hsun Lee

引用次数: 0

Abstract

This study examines the association between ESG reporting and the cost of equity capital, focusing on the influence of Big 4 auditors. Using 2,454 firm-year observations in India from 2016 to 2021, we find that higher ESG scores relate to lower costs of equity capital. Also, the main analysis reveals that the presence of Big 4 auditors strengthens the negative association between ESG scores and the cost of equity capital. This supports the view that Big 4 auditors enhance investor confidence in the credibility of sustainability reporting, reducing the cost of equity capital. These findings are validated through various tests.

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ESG报告对印度股权资本成本的影响：外部审计师的调节作用

本研究考察了ESG报告与权益资本成本之间的关系，重点关注四大审计机构的影响。通过对2016年至2021年印度2454家公司的年度观察，我们发现，ESG得分越高，股权资本成本越低。此外，主要分析表明，四大会计师事务所的存在加强了ESG得分与权益资本成本之间的负相关关系。这支持了这样一种观点，即四大会计师事务所增强了投资者对可持续发展报告可信度的信心，降低了权益资本成本。这些发现通过各种测试得到了验证。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

IIMB Management Review MANAGEMENT-

CiteScore

3.20

自引率

5.90%

发文量

审稿时长

68 days

期刊介绍： IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.