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Does Persistence Explain Esg Disclosure Decisions?, Garret A. Mcbrayer

Marketing Faculty Publications and Presentations

Advocates of an increased focus on environmental, social, and governance (ESG) initiatives have argued that increased ESG disclosure is a necessary first step. Given the limited regulatory requirements on ESG disclosure, manager preferences serve as a primary determinant of ESG transparency. Using data on ESG disclosure from Bloomberg, I examine the extent to which disclosure persistence on the behalf of firm management, as proxied by managerial tenure, affects firms’ ESG disclosure strategies. Overall, I find that ESG disclosure quality and ESG disclosure variability are reduced as management tenure increases. Further, I find that the replacement of a firm’s CEO interrupts …