We examine the impact of mandatory environmental, social, and governance (ESG) disclosure on firms’ default risk. Using a comprehensive sample of 17 emerging countries, we empirically show that firms subject to the mandatory ESG regulation have decreased default risk subsequent to the mandate. This result is consistent with the argument that implementation of mandatory ESG disclosure improves corporate transparency and serves as a substitute for corporate governance mechanisms. Overall, our study supports the positive view of mandatory ESG disclosure and thus contributes to a timely debate on the pros and cons of the mandate in the economy and wider society.

我们研究了强制性环境、社会和治理 (ESG) 披露对公司违约风险的影响。我们使用 17 个新兴国家的综合样本，根据经验表明，受强制性 ESG 监管的公司在强制执行后降低了违约风险。这一结果与实施强制性 ESG 披露提高公司透明度并替代公司治理机制的论点一致。总的来说，我们的研究支持强制性 ESG 披露的积极观点，从而有助于及时讨论强制要求在经济和更广泛的社会中的利弊。