Corporate governance codes compliance and environmental, social and governance disclosures

Abstract

This work aims to study whether the compliance with the recommendations contained in Corporate Governance Codes contributes to environmental, social and corporate governance disclosure practices. The results fail to show a relationship between the global compliance with the recommendations of the codes and the environmental, social and governance disclosures. However, the compliance with the recommendations regarding the board of directors positively influences the voluntary disclosure of this type of information. This evidence contributes to the debate on the role of Corporate Governance Codes and has direct implications for companies and regulators when designing corporate governance mechanisms.