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Do investors materialize the outcome of ESG disclosure in the investment decision?

Ratan Ghosh et al.

The Journal of Risk Finance2026https://doi.org/10.1108/jrf-02-2025-0066article
AJG 1ABDC B
Weight
0.50

What the paper says

Purpose This study investigates how investors integrate environmental, social and governance (ESG) disclosure into their investment decision-making process. Design/methodology/approach A structured questionnaire was developed incorporating ESG factors and investment decision items. Data have been collected from retail investors and representatives of institutional investors. Moreover, Investment Opportunity has been used as a moderator in this study, which posits the overall structure of the Bangladeshi financial market. Furthermore, partial least squares structural equation modelling (PLS-SEM) has been used for analyzing the data. Findings The results indicate that social and governance disclosures have a significant influence on the investment decision-making process in Bangladesh. In the moderation analysis, environmental and governance disclosures have also been observed to influence the investment decision significantly. Research limitations/implications This finding signifies that investors will look for well-governed firms to invest in the Bangladeshi capital market. Originality/value ESG disclosure is a voluntary activity by various companies that involves disclosing value-added information. In the absence of a concrete framework for ESG, this study identifies ESG disclosure items based on previous literature and prescribed voluntary and compulsory disclosure guidelines available in Bangladesh. Consequently, preference for these kinds of non-financial information in investment decision-making is changing corporate reporting practice in Bangladesh.

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https://doi.org/https://doi.org/10.1108/jrf-02-2025-0066

Or copy a formatted citation

@article{ratan2026,
  title        = {{Do investors materialize the outcome of ESG disclosure in the investment decision?}},
  author       = {Ratan Ghosh et al.},
  journal      = {The Journal of Risk Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/jrf-02-2025-0066},
}

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Do investors materialize the outcome of ESG disclosure in the investment decision?

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Evidence weight

0.50

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

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
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.