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The aim is to understand how executive compensation and financial leverage interact with ESG disclosures to affect firm performance.

Environmental, social and governance disclosures and value: financial incentives and performance in Fortune-500 firms

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The aim is to understand how executive compensation and financial leverage interact with ESG disclosures to affect firm performance.
Analyzed panel data from 200 Fortune 500 firms from 2007 to 2022.
Utilized descriptive and correlation diagnostics followed by regression analyses.
Employed pooled ordinary least squares, fixed effects, and two-stage least squares models.
Executive compensation and financial leverage are negatively associated with return on assets, ROIC, and market capitalization.
ESG disclosure moderates these effects, strengthening market evaluations for firms with high leverage or generous pay.
The impact of ESG on accounting measures can sometimes lead to performance declines, indicating complex interactions.

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Examines ESG disclosure's role in firm performance, implying a complex interaction with governance mechanisms.

Tahtamoni et al. (2026) studied this question.

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