The Effect of Environmental, Social and Governance (ESG) Performance on Financial Disclosure Quality with Regard to the Role of Managerial Ability and Corporate Culture

Environmental, social, and governance issues have gained significant attention from investors, regulators, and society; however, their influence on financial disclosure quality is comparatively underexplored. This study investigates the effect of environmental, social and governance (ESG) Performance on financial disclosure quality with regard to the role of managerial ability and corporate culture. It seeks to shed light on whether a firm's emphasis on ESG initiatives leads to enhanced financial disclosures. The panel data method is used considering the data type and the available analysis methods. The required data is collected through document analysis and referring to databases, and inferential statistics are used to conclude. The statistical population of this study includes 105 companies listed on the Tehran Stock Exchange during the period 2018-2023. The panel data regression model tests the research hypotheses, and the Eviews software (Version 10) is employed to analyze the data. The results showed that environmental, social and governance (ESG) performance has a positive impact on the financial disclosure quality , and managerial ability and corporate culture lead to strengthening this impact.