Mandatory ESG Reporting and Voluntary Financial Disclosure

Abstract

I investigate the effect of mandatory ESG reporting on voluntary financial disclosure in an international setting. I find that mandatory ESG reporting significantly increases the voluntary disclosure of financial information. I also explore three channels through which mandatory ESG reporting induces more voluntary financial reporting: managerial intention to reduce the processing cost of ESG information, shareholder information demand, and analyst information demand. Moreover, I find that increased voluntary financial disclosure can help explain the effect of mandatory ESG disclosure on analyst forecast accuracy discussed in the previous literature.

Date of Award	2025
Original language	English
Awarding Institution	The Hong Kong University of Science and Technology
Supervisor	Charles Youyang HSU (Supervisor)