Do Firm-Specific Factors Matter for ESG Performance Disclosure? Evidence from Environmentally Sensitive Sectors in India

Abstract

This study examines the influence of various firm-specific factors on overall ESG performance disclosure and its three dimensions, namely, Environment, Social, and Governance, on listed companies from environmentally sensitive sectors in India. This study considered the sustainability (ESG) scores of the selected companies for a period of 10 years, from 2013 to 2022. This study employs a panel data regression analysis. The results of the study revealed that firm characteristics such as age and size have a significant positive impact, whereas leverage has a significant negative influence on the overall ESG performance disclosure of selected companies. Similar results are obtained for the environmental dimension, and profitability is also found to have a negative impact on it. Firm age, size, and liquidity are found to have a significant positive influence on social performance disclosure, whereas leverage has a significant negative effect. Surprisingly, Government ownership is found to have a significant negative influence on governance disclosure.