Exploring the Role of Corporate Governance and CSR Strategy on the Level of ESG Disclosure: Evidence From Euro-Asian Firms

Abstract

We refer to devote this paper on investigating the impact of Global Compact membership, GRI Standards adoption, board size, audit committee independence', ESG controversies, remuneration of the board of directors members on the ESG disclosure. The methodology proposed will draw on the multidimensional scaling as a multivariate assessment tool to evaluate and prioritize the effect of corporate governance on the environmental, social and governance disclosure. This paper uses a cross-country sample of 455 listed firms located in thirty eight countries from Europe and Asia over the period 2010–2018. We found evidence provide that the Global Compact membership, GRI Standards adoption and CSR strategy index' affect positively the ESG disclosure level. Likewise, the results have highlighted and important effect of audit committee independence' and board compensation on the ESG disclosure for both of European and Asian firms. Our results suggest a negative relation between ESG Controversies, Board Size' and firm ESG Disclosure for our sample of studies.