What question did this study set out to answer?

Investigate whether corporate environmental disclosure reflects underlying environmental performance, and examine how climate governance mechanisms and ESG controversies moderate this relationship.

August 16, 2026European Management Review

Environmental disclosure and environmental performance: The role of climate governance and ESG controversies

View Full Paper

Ask AI

Bookmark

Authors

HMHussain MuhammadAmerican University of Ras Al Khaimah MAMohamed AmanUniversity of Chieti-Pescara

Discussion

Member takes

Implication

Panel study finds environmental performance drives disclosure quality in European firms, indicating climate governance reinforces credibility while ESG controversies weaken it.

Key Points

Investigate whether corporate environmental disclosure reflects underlying environmental performance, and examine how climate governance mechanisms and ESG controversies moderate this relationship.
Analyzed a panel of 3,587 firm-year observations from STOXX Europe 600 companies across 17 countries.
Estimated firm fixed-effects regression models alongside multiple robustness tests.
Observed a strong positive association between environmental performance and environmental disclosure.
Demonstrated that climate governance mechanisms strengthen the performance–disclosure link through enhanced oversight.
Showed that ESG controversies weaken the performance–disclosure relationship by increasing stakeholder skepticism and undermining reporting credibility.

Cite This Study

Muhammad et al. (2026) studied this question.

synapsesocial.com/papers/6a817a60f2fb91fc834ae21b https://doi.org/10.1111/emre.70102

View Full Paper

Ask AI

Bookmark

Implication

Panel study finds environmental performance drives disclosure quality in European firms, indicating climate governance reinforces credibility while ESG controversies weaken it.

Environmental disclosure and environmental performance: The role of climate governance and ESG controversies

Discussion

Member takes

Implication

Key Points

Cite This Study

Environmental disclosure and environmental performance: The role of climate governance and ESG controversies

Discussion

Member takes

Implication

Key Points

Cite This Study

Also Consider

Also Consider