Can Improving Internal Control Quality Reduce the Divergence of Corporate ESG Rat-ings?
ESG rating divergence not only disrupts the correct judgment of stakeholders,but also"covers up"corporate earnings manipulation,false information disclosure and other behaviors.Therefore,how to curb ESG rating divergence is a question worth analyzing.This article selects data from A-share listed companies from 2015 to 2022 to analyze the impact of internal control on ESG rating divergence and its mechanism.Empirical results show that improving internal control quality can significantly reduce the degree of divergence in corporate ESG ratings,but this negative effect mainly exists in private enterprises and companies with poor profitability,and is even clearer for companies with strong executive.Mechanism analysis shows that internal control reduces the degree of divergence in corporate ESG ratings by strengthening the quality of information disclosure,suppressing earnings management and increasing the fulfillment of social responsibilities.Furthermore,the convergence of executive interests and corporate value can not only improve corporate internal control quality,but also strengthen the negative inhibitory effect of internal control quality on corporate ESG rating divergence.The research conclusion provides a reference for enterprises to actively seek the unification of ESG scores and reduce ESG rating divergence.
internal control qualityESG rating divergenceinformation disclosureearnings managementsocial responsibility
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