Beamoning SEC partial passage of disclosure rules for greenhouse gas emissions is understandable. The pause allows revision of Scope 3 rules to be become more effective.
Mainland China’s three main stock markets have released their first guidelines for listed companies to disclose their sustainability-related information, a landmark in the country’s progress towards achieving a sustainable economy and embracing the global environmental, social and governance (ESG) boom.
Environment, Social, and Governance (ESG) disclosure is a non-financial disclosure that is expected to enhance firms’ transparency, ease estimation of risk, hence lower cost of equity (CoE). However prior studies show mixed results. Using Institutional theory, this paper argues that sustainability policy intervention could have a different effect. However, this framework expects that the more ESG disclosure, the higher firms’ cost of equity (CoE) due to shareholders’ perception of mindless ESG plan. The policy intervention examined is government regulation of mandatory sustainability practices. This study uses a sample of 98 basic materials sector companies in eleven Asia countries with 5 years study period from 2017-2021 as a research sample. Using panel-data regression analysis, this study finds that there is a positive relationship between ESG scores and CoE. Moreover, the government policy strengthens such a relationship. Therefore, consistent with coercive mechanism in insti
Nearly 60 percent of accounting managers at Korean businesses support the need to adopt mandatory ESG disclosures in line with the global trend, according to a recent survey. But only 13 percent of the respondents said their companies have completed relevant preparations.