Navigating Transparency: The Interplay of ESG Disclosure and Voluntary Earnings Guidance
Tracks
Gallery 1
| Tuesday, July 2, 2024 |
| 9:30 AM - 9:45 AM |
Presenter
Assoc Prof Tatiana King
Associate Professor
University of Vaasa
Navigating Transparency: The Interplay of ESG Disclosure and Voluntary Earnings Guidance
Abstract
In accordance with stakeholders theory and the reputation-building hypothesis, environmental, social and governance (ESG) disclosure and voluntary earnings guidance are important ways of enhancing firm transparency. Using data of U.S. publicly listed companies from 2002 to 2021, we find that level of ESG disclosure (measured with Bloomberg and machine learning (ML) ESG disclosure scores) is associated with increased information asymmetry. A subsequent examination reveals a positive relation between ESG disclosure levels and earnings guidance. The result holds in a robustness test of quasi-exogenous event of the initiation of the Bloomberg ESG disclosure coverage of firms. We deduce that firms are using voluntary earnings guidance to counterbalance the adverse impact of ESG disclosure on transparency. The study provides new insights on the factors that determine voluntary earnings guidance through firms involvement in ESG disclosure.
Biography
Tatiana King is an Associate Professor of Accounting (tenure-track) and the head of the Auditing and Control in Accounting research group at the University of Vaasa, Finland. Her research focuses on sustainability and the disclosure of ESG-related information. She has published in journals such as Accounting, Auditing & Accountability Journal, Journal of Business Research, International Business Review, Journal of Accounting, Auditing and Taxation, etc. Tatiana’s papers are presented at leading international conferences, such as European Accounting Association Congress, American Accounting Association Meeting, Strategic Management Society Meeting, Academy of Management Meeting, etc. She has participated at Executive Education Programs at Harvard Business School (USA), Institute of Finance (the Netherlands), and University of Ariel (Israel). Tatiana King serves as a member of EFMD Programme Accreditation Board of European Foundation for Management Development (EFMD) since 2018.
Chair
Carly Moulang
Director Of Engagement And Impact
Monash University
