An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China
This study examines the relationship between environment, social responsibility, and governance (ESG) information disclosure and firms’ value. It also investigates how debt cost is the mediate variable between the ESG and firms’ value. The content analysis supported sustainability development theory...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2207685 |
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| author | Dong Siwei Wongvanichtawee Chalermkiat |
| author_facet | Dong Siwei Wongvanichtawee Chalermkiat |
| author_sort | Dong Siwei |
| collection | DOAJ |
| description | This study examines the relationship between environment, social responsibility, and governance (ESG) information disclosure and firms’ value. It also investigates how debt cost is the mediate variable between the ESG and firms’ value. The content analysis supported sustainability development theory, stakeholder theory, and the double carbon target in China. The multiple linear regression is used to examine the relationships for a sample of 94 firm 4-year observations listed in the GICS energy industry during 2018–2021 in China. The results show that ESG is significantly positively associated with firms’ value. Nevertheless, debt cost is negatively and significantly related to ESG. More importantly, the results show that debt cost mediates ESG firms’ value relationship. Further, when the sample is split into state-owned and non-state-owned firms, the ESG- firms’ value significant positive relationship is evident only in the latter, corroborating the mediate role of the debt cost in China. This study contributes to the literature on ESG, debt cost, and firms’ value by offering evidence for the mediating role of debt cost on the ESG firms’ value relationship, supporting the view that non-state-owned firms are more sensitive. Regulators and stakeholders should be aware of the potential effect of engagement in ESG reporting and the benefits of having a low cost of debt on firms’ value. |
| format | Article |
| id | doaj-art-4ed3eb470e6c4d76bbb5f85bb2c72746 |
| institution | DOAJ |
| issn | 2331-1975 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-4ed3eb470e6c4d76bbb5f85bb2c727462025-08-20T02:40:00ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110310.1080/23311975.2023.2207685An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in ChinaDong Siwei0Wongvanichtawee Chalermkiat1College of Accounting, Shandong Technology and Business University, Yantai, ChinaCollege of Accounting, Shandong Technology and Business University, Yantai, ChinaThis study examines the relationship between environment, social responsibility, and governance (ESG) information disclosure and firms’ value. It also investigates how debt cost is the mediate variable between the ESG and firms’ value. The content analysis supported sustainability development theory, stakeholder theory, and the double carbon target in China. The multiple linear regression is used to examine the relationships for a sample of 94 firm 4-year observations listed in the GICS energy industry during 2018–2021 in China. The results show that ESG is significantly positively associated with firms’ value. Nevertheless, debt cost is negatively and significantly related to ESG. More importantly, the results show that debt cost mediates ESG firms’ value relationship. Further, when the sample is split into state-owned and non-state-owned firms, the ESG- firms’ value significant positive relationship is evident only in the latter, corroborating the mediate role of the debt cost in China. This study contributes to the literature on ESG, debt cost, and firms’ value by offering evidence for the mediating role of debt cost on the ESG firms’ value relationship, supporting the view that non-state-owned firms are more sensitive. Regulators and stakeholders should be aware of the potential effect of engagement in ESG reporting and the benefits of having a low cost of debt on firms’ value.https://www.tandfonline.com/doi/10.1080/23311975.2023.2207685sustainabilityESG information performancecorporate valuecost of debtstakeholders |
| spellingShingle | Dong Siwei Wongvanichtawee Chalermkiat An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China Cogent Business & Management sustainability ESG information performance corporate value cost of debt stakeholders |
| title | An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China |
| title_full | An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China |
| title_fullStr | An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China |
| title_full_unstemmed | An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China |
| title_short | An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China |
| title_sort | analysis on the relationship between esg information disclosure and enterprise value a case of listed companies in the energy industry in china |
| topic | sustainability ESG information performance corporate value cost of debt stakeholders |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2207685 |
| work_keys_str_mv | AT dongsiwei ananalysisontherelationshipbetweenesginformationdisclosureandenterprisevalueacaseoflistedcompaniesintheenergyindustryinchina AT wongvanichtaweechalermkiat ananalysisontherelationshipbetweenesginformationdisclosureandenterprisevalueacaseoflistedcompaniesintheenergyindustryinchina AT dongsiwei analysisontherelationshipbetweenesginformationdisclosureandenterprisevalueacaseoflistedcompaniesintheenergyindustryinchina AT wongvanichtaweechalermkiat analysisontherelationshipbetweenesginformationdisclosureandenterprisevalueacaseoflistedcompaniesintheenergyindustryinchina |