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The value relevance of nonfinancial disclosure: Evidence from foreign equity investment

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  • Chauhan, Yogesh
  • Kumar, Surya Bhushan

Abstract

We investigate the effect of Environmental, Social, Governance (ESG)-related disclosure on foreign investments for Indian firms where financial reporting does not provide adequate and reliable information. We show a preference of foreign investors for firms disclosing ESG-related information. Our results suggest that ESG-related disclosure is particularly useful for firms facing information problems. Finally, we report that the effect of ESG-related disclosure is lesser on domestic investors.

Suggested Citation

  • Chauhan, Yogesh & Kumar, Surya Bhushan, 2019. "The value relevance of nonfinancial disclosure: Evidence from foreign equity investment," Journal of Multinational Financial Management, Elsevier, vol. 52.
    • Handle: RePEc:eee:mulfin:v:52-53:y:2019:i::s1042444x19301331
    DOI: 10.1016/j.mulfin.2019.100595
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    3. Bowen Lu & Shangzhi Yue, 2022. "Analysis of the Evolutionary Game of Three Parties in Environmental Information Disclosure in Sustainability Reports of Listed Forestry Companies in China," Sustainability, MDPI, vol. 14(5), pages 1-23, March.

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    More about this item

    Keywords

    The nonfinancial disclosure; ESG; Foreign investments; The emerging market; India;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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