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IFRS and ESG Disclosure in Indian Corporate Sector

Author

Listed:
  • Ajit Dayanandan
  • Han Donker
  • Sudershan Kuntluru

Abstract

World-wide, there is movement toward embracing environmental, social, and governance (ESG) issues in corporate conduct and performance. These developments have led to movement toward “reimagining capitalism,†and many firms have ridden the wave of investor enthusiasm for firms that prioritize ESG disclosures. The present study examines the role of International Financial Reporting Standards (IFRS) in India on ESG and overall ESG reporting. The Indian capital markets regulator, SEBI, had made integrated reporting compulsory for listed firms to disclose information about matters that substantively affect the organization’s ability to create value over the short, medium, and long term at a time. Motivated by this episode, we examine how accounting regulations in the form of IFRS could influence ESG disclosures in India. Based on the ESG scores of 104 non-financial firms in India from 2013 to 2021, the study finds a positive relationship between ESG reporting and IFRS introduction in India. The performance of firms (return on assets) and leverage had a negative impact on ESG disclosures. JEL Codes: G14, K22, L51, M38, M41

Suggested Citation

  • Ajit Dayanandan & Han Donker & Sudershan Kuntluru, 2024. "IFRS and ESG Disclosure in Indian Corporate Sector," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 23(2), pages 143-169, June.
    • Handle: RePEc:sae:emffin:v:23:y:2024:i:2:p:143-169
    DOI: 10.1177/09726527231197328
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    More about this item

    Keywords

    Accounting; ESG; ESG disclosures; IFRS; Ind AS; India;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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