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Do social and environmental disclosures impact information asymmetry?

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  • Acheampong, Albert
  • Elshandidy, Tamer

Abstract

We examine the impact of social and environmental disclosures (SEDs) on information asymmetry. Employing data from 145 banks from 2005 to 2021 across 19 European (EU) countries. Our findings reveal that both SEDs reduce information asymmetry by increasing market liquidity. We further find that the observed impact of such disclosures is more pronounced for banks operating in countries that pay high attention to human development.

Suggested Citation

  • Acheampong, Albert & Elshandidy, Tamer, 2024. "Do social and environmental disclosures impact information asymmetry?," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s016517652300513x
    DOI: 10.1016/j.econlet.2023.111487
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    References listed on IDEAS

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    More about this item

    Keywords

    Social disclosure; Environmental disclosure; Market liquidity; Information asymmetry; European banks;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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