Work

Stakeholders and regulatory pressure on ESG disclosure

Year: 2025

Type: article

Abstract: We focus on the impact of stakeholders' pressure on the levels of ESG transparency exhibited by companies operating under different regulatory frameworks – specifically, within voluntary or mandatory disclosure regimes – between 2012 and 2020. Our analysis encompasses European and US listed companies, each having taken distinct paths toward sustainability reporting . Europe underwent the transition to a mandatory disclosure regime with the implementation of the EU 2014 Non-Financial Reporting Directive, while the US adopted a market-based approach, often referring to disclosure frameworks established by non-governmental entities. Our findings reveal that, under the voluntary disclosure regime, higher pressure toward transparency is primarily driven by employee-oriented and environmentally sensitive companies. However, during the mandatory regime for European firms, regulatory pressure takes the place of the previously exerted pressure by stakeholders. US-listed firms are indirectly impacted by the European regulatory transition, exhibiting heightened levels of pressure on reporting demanded by stakeholders in environmentally sensitive industries , as well as by institutional investors.

Source: International Review of Financial Analysis

DOI: 10.1016/j.irfa.2025.104145

Authors: Enrica Bolognesi, Alberto Burchi, John W. Goodell, Andrea Paltrinieri

Institutions: University of Udine, University of Perugia, University of Akron, Università Cattolica del Sacro Cuore

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,770