Figure 1
A diagram illustrating the relationship between environmental, social, and governance components and earnings quality. The diagram consists of three main components: Environmental, Social, and Governance, each connected to a theory box. The Environmental component is linked to the Stakeholders/Legitimacy theory box, which in turn is connected to the Earnings quality box with a plus sign and an arrow. The Social component is linked to the Stakeholders/Legitimacy theory box, which is also connected to the Earnings quality box with a plus sign and an arrow. The Governance component is linked to the Stakeholders/Legitimacy/Agency theory box, which is connected to the Earnings quality box with a plus sign and an arrow.Relationship between ESG components and EQ