Title ESG disclosure and firm performance: regional differences between Western European and Central and Eastern European firms
Authors Rudžionienė, Kristina ; Keliuotytė-Staniulėnienė, Greta ; Kanapickienė, Rasa ; Valukonis, Mantas ; Klimaitienė, Rūta
DOI 10.3390/jrfm19090683
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Is Part of Journal of risk and financial management: spec. iss.: Accounting, auditing, and reporting quality: challenges under uncertainty conditions.. Basel : MDPI. 2026, vol. 19, iss. 9, art. no 683, p. [1-24].. eISSN 1911-8074
Keywords [eng] ESG disclosure ; corporate financial performance ; panel data ; Western Europe ; Central and Eastern Europe
Abstract [eng] This study examines the association between ESG disclosure and corporate financial performance (CFP) and assesses whether this association differs across selected Western European (WE) and Central and Eastern European (CEE) countries. Using Bloomberg data for 4553 firms from 2013 to 2024, this study applies bivariate and multivariate pooled, fixed-effects, and random-effects panel regression models. The Bloomberg ESG disclosure score is used as the independent variable, while return on assets (ROA), return on equity (ROE), EBITDA margin, net profit margin, price-to-book ratio, and shareholder yield represent different dimensions of CFP. The results reveal that ESG disclosure is negatively associated with ROA and ROE, positively associated with shareholder yield, and not significantly associated with the remaining performance measures. Moreover, regional differences are observed only for selected accounting-based measures, with a stronger negative association in CEE countries. This study contributes to the literature by providing comparative evidence from WE and CEE firms and demonstrating that the association between ESG disclosure and CFP varies across performance measures and between the two regional groups.
Published Basel : MDPI
Type Journal article
Language English
Publication date 2026
CC license CC license description