A Literature Study on the Impact of ESG Information Disclosure Quality on the Value of Listed Companies

Aoyang Zhang

doi:10.54097/mxvx2b14

Authors

Aoyang Zhang

DOI:

https://doi.org/10.54097/mxvx2b14

Keywords:

ESG Information Disclosure Quality, Company Valuation, ESG Rating.

Abstract

This paper reviews the existing literature on the impact of Environmental, Social, and Governance (ESG) information disclosure quality on the value of listed companies. In recent years, ESG has become an increasingly important indicator for investors to evaluate the long-term sustainable development capabilities of companies. High-quality ESG information disclosure helps reduce information asymmetry, enhancing investor confidence and improving capital market efficiency. The review of current research shows that ESG disclosure quality, based on well-established frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD), is significantly positively correlated with key financial indicators, including company valuation, cost of capital, and profitability. However, there are also critical viewpoints regarding ESG disclosure, such as inconsistent disclosure standards, the prevalence of "greenwashing" phenomena, and debates surrounding the financial relevance of ESG information. Despite these concerns, this paper underscores the necessity of establishing a unified global ESG information disclosure standard. Such standardization would enhance the consistency, transparency, and reliability of ESG data, providing investors with more accurate and valuable information for informed decision-making.

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