Environmental, Social and Governance Disclosure and Value Generation: Is the Financial Industry Different?

This study investigates the relationship between corporate environmental, social and governance (ESG) performance disclosure profitability, highlighting significant differences financial non-financial sectors. uses an extensive Australian sample during 2007–2017 period from Bloomberg’s database. A panel regression model is used to evaluate association ESG profitability conduct industry analysis. The robustness of results rigorously assessed using several tests methodological, selection, endogeneity causality issues associated with disclosure. finds that higher company profitability. However, comparison analysis shows industries. for companies operating in sectors, except governance, there no environmental elements a company’s Therefore, this has implications regulators corporations. empirical show improving beneficial shareholders other stakeholders long run. enforcement environmentally socially responsible improves only industry. recommends create conducive institutional environment promote it enhances awareness borrowers as well helps economic development.