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Do investors value the nonfinancial disclosure in emerging markets?
, Yogesh Chauhan
Published in Elsevier BV
Volume: 37
Pages: 32 - 46
This paper studies the impact of the nonfinancial disclosure on firm value for a large sample of Indian firms, arguably emerging market with poor investor protections and legal enforcement. We proxy the nonfinancial disclosure by the Bloomberg score on the extent of a firm's Environmental, Social, and Governance disclosures, and find positive valuation effects associated with the nonfinancial disclosure. We find the nonfinancial disclosure is more valuable to standalone firms compared to business group firms. This paper shows that the positive valuation effects associated with the nonfinancial disclosure are attributable to lower cost of funds and higher operating cash flows.
About the journal
JournalData powered by TypesetEmerging Markets Review
PublisherData powered by TypesetElsevier BV
Open AccessNo