Non-financial strategy disclosure and environmental,social and governance score: Insight from a configurational approach |
| |
Authors: | Riccardo Santamaria Francesco Paolone Nicola Cucari Luca Dezi |
| |
Institution: | 1. Department of Management, Sapienza University of Rome, Rome, Italy;2. Mercatorum University, Rome, Italy;3. Department of Communication and Social Research, Sapienza University of Rome, Rome, Italy |
| |
Abstract: | Evaluating the determinants of environmental, social and governance (ESG) score is significant for topic for academics and regulators and companies. Despite its importance, little attention has been paid to non-financial strategy disclosure and how to communicate non-financial information. However, in the recent years, attention to the topic has considerably increased as demonstrated, in the European context, by the introduction of the non-financial reporting directive in 2014. Therefore, it is important to analyse how the quantity and quality of disclosure influence the ESG score. To explore this relationship, a configurational analysis aimed at 31 Italian listed companies was studied by fuzzy-set qualitative comparative analysis. The results showed that there were three path types driving the ESG score and that integrated reporting played a highly significant role in promoting a high ESG score. Specifically, we show the importance of assessing the combinations of quality and quantity disclosures for ESG score through configurational thinking. These results provide a first theoretical basis for the effectiveness of disclosure measurements on ESG score, charting the future direction for environmental management studies. |
| |
Keywords: | disclosure measurements ESG score ESG strategy non-financial information non-financial reporting directive qualitative comparative analysis |
|
|