THE IMPACT OF ESG DISCLOSURE ON CORPORATE PERFORMANCE: SYSTEMATIC LITERATURE REVIEW

Abstract

Environmental, Social, and Governance (ESG) disclosure has garnered increasing attention from companies amid growing global awareness of sustainability issues. This study aims to systematically review empirical literature examining the impact of ESG disclosure on corporate performance. Through a comprehensive literature analysis of relevant empirical studies, this research identifies prevailing trends, diverse findings, and moderating factors that influence the relationship between ESG disclosure and firm performance. The findings suggest that, despite certain inconsistencies, ESG disclosure is generally associated with improved corporate financial outcomes. However, the influence of each ESG dimension—environmental, social, and governance—can vary depending on industry sector, geographic context, and firm-specific characteristics. This study underscores the importance of standardizing ESG measurement and reporting practices to reduce ambiguity and enhance the clarity of its implications for business performance. A systematic and empirical review of the literature is presented, along with directions for future research aimed at addressing existing gaps and further exploring the complexity of this relationship.