Panel analysis demonstrates AI adoption enhances ESG disclosure quality in G7 manufacturing firms, highlighting the amplifying role of regulatory pressure and governance.
Key Points
To evaluate the impact of artificial intelligence adoption on ESG disclosure quality and determine how governance and institutional factors moderate this relationship.
Analyzed a panel dataset of 5,600 firm-year observations from manufacturing companies across G7 economies from 2017 to 2024.
Employed distribution-sensitive quantile regression and complementary robustness tests to evaluate heterogeneous effects across disclosure distributions.
Artificial intelligence adoption demonstrated a consistently positive relationship with ESG disclosure quality across all quantile tiers, improving reporting accuracy, timeliness, and credibility.
The positive impact of AI on disclosure quality was significantly strengthened by stakeholder engagement, regulatory pressure, and institutional ownership.