The Impact of ESG Report Textual Quality on ESG Rating Divergence
As an important indicator for measuring the ESG performance of listed companies,ESG ratings issued by third-party rating agencies have garnered significant attention from stakeholders.However,different rating agencies may have differ-ent ESG ratings for the same company,making it difficult for stakeholders to judge the actual ESG performance of the com-pany.The textual quality of ESG reports,as a crucial information source for rating agencies,can influence the judgment of rating agencies on corporate ESG performance,thus affecting rating divergence.Based on the data of Chinese A-share listed companies from 2018 to 2022,this study employs text analysis techniques to construct an index of ESG report textual quality from four textual language features of tone,readability,length,and forward-looking information and then investigate the im-pact of ESG report textual quality on ESG rating divergence.The empirical findings indicate that higher textual quality in ESG reports is associated with lower ESG rating divergence.Further analysis indicates that ESG reports with a more negative tone,enhanced readability,longer length,and more forward-looking information tend to exhibit lower ESG rating divergence.Moreover,improvements in the textual quality of ESG reports significantly reduce rating divergence across various dimensions,including environmental,social responsibility,and corporate governance.Compared to voluntary disclosure,the negative impact of improvements in ESG report textual quality on ESG rating divergence is more pronounced under mandatory disclosure.Therefore,listed companies should place great emphasis on the textual quality of ESG reports,ensuring that the reports are logically clear,easy to understand,detailed,and forward-looking;regulatory authorities should expand the scope of mandatory ESG report disclosure and improve oversight of ESG report textual quality.
万方数据
维普
