The Moderating Role of Accounting Conservatism in the Relationship Between ESG Disclosure and Company Value: Evidence from Korea and China

This study examines ESG disclosure’s effect on company value and accounting conservatism’s moderating role. Using Korean and Chinese listed firms for out‑of‑sample validation, we find that ESG disclosure positively affects company value, which is more pronounced when financial reporting is less conservative. Results hold under 2SLS and T+1 tests. It suggests that ESG disclosure not only serves as a direct value-enhancing signal but also functions as a complementary mechanism substituting for conservatism. It indicates that increasing ESG disclosure can serve as a strategic communication tool to enhance firm valuation, offering insights for the coordination of financial and non-financial disclosure regulations.