Does voluntary environmental, social, and governance disclosure impact initial public offer withdrawal risk?

IF 4.8 Q1 Economics, Econometrics and Finance Business Ethics-A European Review Pub Date : 2024-04-14 DOI:10.1111/beer.12678

Fouad Jamaani, Manal Alidarous

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Abstract

Despite much research now being published on Environmental, Social, and Governance (ESG) investments and Initial Public Offerings (IPOs) withdrawal risk, there appears to be a lack of evidence on the prospective IPO withdrawal risk associated with voluntary disclosure of ESG policies. This paper investigates the influence of ESG disclosure on IPO withdrawal by comparing voluntary ESG disclosure to conventional IPOs in the international market. A large data set is employed here, containing 33,535 failed and successful IPOs from 1995 to 2019 from several nations with their own legal systems, cultural norms, and economic systems. The findings reveal that voluntary disclosure of ESG practices does significantly reduce the likelihood of an IPO withdrawal, by as much as 48%. These findings strongly suggest that organizations engaged in ESG activities perceive voluntary disclosure as an incentive, to adhere to social expectations. Consequently, reducing the asymmetry of information between IPO participants minimizes the withdrawal risk these companies face, hence diminishing doubts about their legitimacy. The results have consequences for IPO businesses, investors, researchers, and regulators.

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自愿性环境、社会和治理信息披露是否会影响首次公开募股的退出风险？

尽管目前有很多关于环境、社会和治理（ESG）投资以及首次公开募股（IPO）撤回风险的研究，但似乎还缺乏与自愿披露环境、社会和治理政策相关的首次公开募股撤回风险的证据。本文通过比较国际市场上自愿性 ESG 披露与传统 IPO，研究了 ESG 披露对 IPO 撤回的影响。本文采用了一个大型数据集，其中包含 1995 年至 2019 年间来自多个国家的 33,535 次失败和成功 IPO，这些国家都有自己的法律制度、文化规范和经济体系。研究结果表明，自愿披露环境、社会和公司治理实践确实大大降低了 IPO 撤资的可能性，降幅高达 48%。这些研究结果有力地表明，从事环境、社会和公司治理活动的组织将自愿披露视为一种激励，以遵守社会期望。因此，减少 IPO 参与者之间的信息不对称可以最大限度地降低这些公司面临的退出风险，从而减少对其合法性的质疑。这些结果对 IPO 企业、投资者、研究人员和监管机构都有影响。

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来源期刊

Business Ethics-A European Review Multiple-

CiteScore

5.90

自引率

0.00%

发文量

期刊介绍： -To offer rigorous and informed analysis of ethical issues and perspectives relevant to organizations and their relationships with society -To promote scholarly research and advance knowledge in relation to business ethics and corporate social responsibility and social entrepreneurship by providing cutting edge theoretical and empirical analysis of salient issues and developments -To be responsive to changing concerns and emerging issues in the business ethics and business and society sphere, and to seek to reflect these in the balance of contributions -To be the publication outlet of choice for all types of original research relating to business ethics and business-society relationships. Original articles are welcomed. Each issue will normally contain several major articles, and there will be an occasional FOCUS section which will contain articles on an issue of particular importance and topicality. Other regular features will include editorial interviews, book reviews, comments and responses to published articles, research notes and case studies. Business Ethics: A European Review is well established as an academic research journal which is at the same time readable, user-friendly and authoritative. It publishes both fully refereed scholarly papers and special contributions such as speeches and reviews. The range of contributions reflects the variety and scope of ethical issues faced by business and other organisations world-wide, and at the same time seeks to address the interests and concerns of the journals readership.