Prior empirical research on the relationship between ESG and EQ
| Study | Country/Period | ESG measure | Earnings quality proxy | Main findings | Notes/Gap |
|---|---|---|---|---|---|
| Scholtens and Kang (2013) | Korea and Japan (2003–2009) | KLD/ASI ESG index | Earnings persistence | Mixed; governance significant, E and S not | Institutional variation evident |
| Krüger (2015) | US (1991–2009) | KLD ESG rating | Abnormal accruals | Mixed results; negative events more influential | Focus on market reaction rather than accounting quality |
| Hossain et al. (2015) | Australia (2008–2014) | ESG index | Earnings smoothness | Positive; social disclosure improves EQ | Developed-market evidence |
| García-Sánchez et al. (2020) | India (2008–2015) | CSR index | Earnings persistence, EM | CSR improves reporting quality | Emerging-market evidence; limited ESG disaggregation |
| Martínez-Ferrero and García-Sánchez (2018) | Multi-country (OECD, 2006–2014) | Thomson Reuters ESG score | Discretionary accruals | Positive link; stronger in countries with robust institutions | Cross-country context; limited focus on Southern Europe |
| Velte (2019) | Germany (2010–2016) | Thomson Reuters ESG score | Real EM and accrual-based EM | ESG, especially governance, reduces EM | Strong ESG–quality nexus in stakeholder model |
| This study | Italy (2021–2022) | LSEG (Refinitiv) ESG and pillars | Beneish M-Score | Expected positive relation; governance most influential sub-pillar | Fills gap for Italian listed firms under EU NFRD/CSRD |
| Study | Country/Period | ESG measure | Earnings quality proxy | Main findings | Notes/Gap |
|---|---|---|---|---|---|
| Korea and Japan (2003–2009) | KLD/ASI ESG index | Earnings persistence | Mixed; governance significant, E and S not | Institutional variation evident | |
| US (1991–2009) | KLD ESG rating | Abnormal accruals | Mixed results; negative events more influential | Focus on market reaction rather than accounting quality | |
| Australia (2008–2014) | ESG index | Earnings smoothness | Positive; social disclosure improves EQ | Developed-market evidence | |
| India (2008–2015) | CSR index | Earnings persistence, EM | CSR improves reporting quality | Emerging-market evidence; limited ESG disaggregation | |
| Multi-country (OECD, 2006–2014) | Thomson Reuters ESG score | Discretionary accruals | Positive link; stronger in countries with robust institutions | Cross-country context; limited focus on Southern Europe | |
| Germany (2010–2016) | Thomson Reuters ESG score | Real EM and accrual-based EM | ESG, especially governance, reduces EM | Strong ESG–quality nexus in stakeholder model | |
| Italy (2021–2022) | LSEG (Refinitiv) ESG and pillars | Beneish M-Score | Expected positive relation; governance most influential sub-pillar | Fills gap for Italian listed firms under EU NFRD/CSRD |
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