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ESG disclosure and labour investment efficiency

Paulo Pereira da Silva & Isabel Vieira

Research in Economics2025https://doi.org/10.1016/j.rie.2025.101060article
AJG 1ABDC B
Weight
0.44

What the paper says

This study examines the impact of environmental, social and governance (ESG) disclosure on firms’ labour investment efficiency. Our results indicate that such impact is positive. ESG disclosure is more effective in curtailing over-hiring and when over-investment in physical capital is high. The uncovered positive association is mainly fuelled by the volume of social and governance disclosure (environmental disclosure barely affects labour investment efficiency), and is more pronounced for firms with a weaker corporate social responsibility performance. The results from the empirical analysis survive a battery of robustness tests, including the use of alternative measures to capture labour investment efficiency, different control variables in regression models, and controlling for endogeneity in ESG disclosure. Our analysis and findings are novel to the literature and contribute to ongoing debates about the impact of ESG disclosure on firms’ performance and about potential benefits and costs of mandatory disclosure.

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https://doi.org/https://doi.org/10.1016/j.rie.2025.101060

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@article{paulo2025,
  title        = {{ESG disclosure and labour investment efficiency}},
  author       = {Paulo Pereira da Silva & Isabel Vieira},
  journal      = {Research in Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1016/j.rie.2025.101060},
}

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ESG disclosure and labour investment efficiency

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Evidence weight

0.44

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.32 × 0.4 = 0.13
M · momentum0.57 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.