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ESG disclosure and corporate cost stickiness: Evidence from supply-chain relationships

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  • Jiang, Wei
  • Yang, Wenbin

Abstract

We investigate the effect of Environmental, social, and governance (ESG) disclosures by customer firms on suppliers’ cost stickiness in a supply-chain setting. Our findings indicate that ESG disclosures can mitigate suppliers' cost stickiness, mainly due to reduced optimistic expectations from suppliers' management. Further analysis reveals that the negative relationship intensifies with increased geographical and social distance between suppliers and customers, and when they belong to different industries.

Suggested Citation

  • Jiang, Wei & Yang, Wenbin, 2024. "ESG disclosure and corporate cost stickiness: Evidence from supply-chain relationships," Economics Letters, Elsevier, vol. 238(C).
    • Handle: RePEc:eee:ecolet:v:238:y:2024:i:c:s0165176524001800
    DOI: 10.1016/j.econlet.2024.111697
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    References listed on IDEAS

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    1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
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    4. Darendeli, Alper & Fiechter, Peter & Hitz, Jörg-Markus & Lehmann, Nico, 2022. "The role of corporate social responsibility (CSR) information in supply-chain contracting: Evidence from the expansion of CSR rating coverage," Journal of Accounting and Economics, Elsevier, vol. 74(2).
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    More about this item

    Keywords

    ESG disclosures; Cost stickiness; Supply-chain Relationships;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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