Country and corporate characteristics improve environmental, social, and governance disclosure?

This research analyzed the country and corporate characteristics influencing companies’ environmental, social, and governance (ESG) disclosure in Brazil and Germany. The methodology is descriptive, quantitative, and documentary, analyzing the period from 2010 to 2019 of Brazilian companies from Brasil, Bolsa e Balcão (B3) and German companies from the Frankfurt Stock Exchange. Regarding the analyzed country characteristics (carbon emissions and GDP), it was evidenced that carbon emissions positively influence the ESG disclosure of Brazilian companies and negatively in the scenario of German companies. GDP showed a negative relationship with the ESG disclosure of Brazilian companies. The corporate variables: market to book, liquidity, and financial leverage, were negatively related to the ESG disclosure of companies in Brazil and Germany. Business risk showed a positive relationship with the ESG disclosure of companies in Germany. These results reveal that different countries and corporate characteristics have implications for the ESG disclosure of Brazilian and German companies. This research helps companies by highlighting which country and corporate characteristics tend to improve ESG disclosure. It aims to promote greater discussions in the literature about factors little explored in studies that tend to improve environmental, social, and governance actions and benefit companies, the environment, and society. Furthermore, it adds knowledge to the literature on the impacts of country and corporate characteristics on the environmental, social, and governance disclosure of companies in developing (Brazil) and developed (Germany) countries.