RT info:eu-repo/semantics/article
T1 Pretending to be sustainable: Is ESG disparity a symptom?
A1 Fuente Herrero, Gabriel de la
A1 Velasco González, María Del Pilar
K1 ESG
K1 Corporate social responsibility
K1 Firm value
K1 Agency theory
K1 Disparity
AB This study investigates a novel dimension of ESG (environmental, social, and governance), namely the degree of inequality in the distribution of a firm’s overall ESG performance across the three pillars. By grounding our arguments on the agency theory, we argue that such a dimension can discern the degree of authenticity of managers’ ESG awareness. A more unequal distribution might be due to a discretionary and self-interested adoption of ESG principles in order to win the favour of key stakeholders. Using a sample of U.S. listed companies, we provide empirical evidence that disparity in ESG scores between pillars detracts value from ESG engagement. Moreover, such a negative moderating effect worsens in companies that are more prone to agency problems (e.g. higher cash holdings), lack ESG-based compensation, have lower leverage, and are more exposed to the investor spotlight (e.g. higher analyst coverage). Overall, our findings suggest the importance of accounting for managerial motivations to engage in ESG and support the idea that a lower perceived authenticity of these programmes results in lower value outcomes.
PB Elsevier
SN 1815-5669
YR 2024
FD 2024-08
LK https://uvadoc.uva.es/handle/10324/69819
UL https://uvadoc.uva.es/handle/10324/69819
LA eng
NO Journal of Contemporary Accounting & Economics, Agosto 2024, vol. 20, n. 2, 100418.
NO Producción Científica
DS UVaDOC
RD 18-sep-2024