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Business strategy heterogeneity and ESG disclosure

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  • Dang, Man
  • Puwanenthiren, Premkanth
  • Jones, Edward
  • Hoang, Viet Anh
  • Nguyen, Thieu Quang
  • Nguyen, Huu Cuong

Abstract

Our study investigates the influence of business strategy heterogeneity on corporate sustainability, measured by the Bloomberg ESG disclosure scores. Using a dataset of 6,976 observations from U.S. non-financial firms over the 2005–2019 period, we find a significant negative relationship between firms adopting a prospector strategy and their ESG disclosure scores. Firms emphasizing aggressive growth, innovation, and risk-taking tend to have lower ESG scores compared to those with defender and analyzer strategies. Further, the negative association between a prospector strategy and ESG scores intensifies under weaker information and governance frameworks and during periods of increased uncertainty. As COP28 promotes global collaboration on climate action, this study highlights the need for businesses to realign their strategies with the global sustainability agenda.

Suggested Citation

  • Dang, Man & Puwanenthiren, Premkanth & Jones, Edward & Hoang, Viet Anh & Nguyen, Thieu Quang & Nguyen, Huu Cuong, 2025. "Business strategy heterogeneity and ESG disclosure," International Review of Economics & Finance, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:reveco:v:100:y:2025:i:c:s1059056025002813
    DOI: 10.1016/j.iref.2025.104118
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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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