DO THE QUALITY OF CORPORATE GOVERNANCE AND ENVIRONMENTAL, SOCIAL, AND GOVERNANCE DISCLOSURE INFLUENCE THE RELEVANCE OF ACCOUNTING INFORMATION?

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DOI:

https://doi.org/10.4270/ruc.2022113

Keywords:

Corporate Governance, ESG, Relevance of Accounting Information

Abstract

This research seeks to analyze the influence of the quality of corporate governance and Environmental, Social, and Governance (ESG) disclosure on the relevance of accounting information of Brazilian companies. The methodology is descriptive, quantitative, and documentary, with the analysis of a period of five years (2016 to 2020) of Brazilian companies belonging to the Brasil 100 index (IBrX-100) of Brasil, Bolsa, and Balcão (B3). We performed a panel data regression for the three proposed equations for data processing. The results indicated that the earnings variation (ΔEARN) and the corporate governance index (IQGC) were positively and significantly related to the stock return (RET). On the other hand, the effects of ESG (general) disclosure on stock returns were not confirmed, as there was no statistically significant relationship. However, in the individual analysis of the ESG factors (environmental, social, and governance), a positive and significant relationship was confirmed only for social disclosure (SOC) in the RET, constituting a potential investment opportunity for organizations. These results suggest that the set of practices denoting the quality of corporate governance and social disclosure are relevant to achieving higher stock returns. Given the positive effects of value relevance, this research contributes to boosting incentives for organizations to consider effective mechanisms in their governance structure and invest in ESG actions and strategies.

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References

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Published

2023-07-07

How to Cite

Meneghel, M. F., Kieling, D. L., & Degenhart, L. (2023). DO THE QUALITY OF CORPORATE GOVERNANCE AND ENVIRONMENTAL, SOCIAL, AND GOVERNANCE DISCLOSURE INFLUENCE THE RELEVANCE OF ACCOUNTING INFORMATION?. Revista Universo Contábil, 18. https://doi.org/10.4270/ruc.2022113

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Section

National Section