ESG Disclosure, Foreign Ownership, and the Role of the Information and Governance Environments
研究42个国家企业样本发现，ESG披露对外资持股的正面影响在信息与治理环境较弱的国家更强，且主要由环境和社会维度驱动。
ABSTRACT Research Question/Issue Analyzing a large sample of firms from 42 countries, this study examines the impact of environmental, social, and governance (ESG) disclosure on the level of firms' foreign ownership, as well as how this relationship varies across national information and governance environments. Research Findings/Insights We find that the relationship between ESG disclosure and foreign ownership is contingent upon country‐level information and governance environments, with ESG disclosure having a stronger positive effect in countries where these institutional characteristics are weaker. Further analysis shows that this effect is primarily driven by the environmental and social dimensions of ESG, indicating their greater relevance to foreign investors. The findings are robust across various sensitivity tests, including methods addressing potential endogeneity, analyses incorporating a measure of ESG disclosure quality that accounts for decoupling—the gap between a firm's stated ESG commitments and its actual practices—and analyses restricting the sample to investors from countries with strong environmental performance. Theoretical/Academic Implications Drawing on a multi‐theoretical framework encompassing institutional, signaling, agency, and legitimacy perspectives, our study extends the literature by examining how the relationship between ESG disclosure and foreign ownership varies systematically across countries' information and governance environments. In countries characterized by informational and governance voids, ESG disclosure operates as a salient information‐enhancing mechanism, strengthening firms' ability to attract cross‐border equity capital. Practitioner/Policy Implications Given the central role of cross‐border investment for many economies, this study offers useful insights for regulators engaged in developing ESG disclosure requirements, as well as for firms seeking to attract foreign investors and expand their access to international equity capital.