Year: 2024
Type: article
Abstract: This study compares investor behavior in the context of comprehensive and selective ESG disclosure. The research underscores how openness promotes corporate performance, although it does not address the psychology and decision-making processes of investors. Additionally, it examines the responses of both institutional and individual investors to ESG disclosures, highlighting the potential influence of behavioral features on investment decisions — an area previously underexplored. The study further examines how ESG openness affects investor behavior across sectors, including both high-risk and low-risk companies, a focus largely neglected in earlier research. Employing quantitative empirical methods and case studies, the research examines how ESG transparency in corporate reporting affects investor behavior. Transparency will be assessed using data from MSCI and Sustainalytics, alongside investor behavior metrics such as trading volumes, stock price volatility, and confidence indexes obtained from Bloomberg and Thomson Reuters. The study posits that enhanced ESG transparency is likely to increase investor trust, improve decision-making, and ultimately bolster corporate value. This paper seeks to provide valuable insights for business practitioners and policymakers regarding the significance of ESG reporting in fostering transparency and promoting sustainable investment practices.
Author: Ziqing Zheng
Institution: Macau University of Science and Technology
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405590880