The Economic Impact of ESG Information Disclosure

Abstract

As Environmental, Social, and Governance (ESG) disclosure shifts from voluntary to mandatory practice worldwide, its economic implications are becoming increasingly significant. This paper systematically reviews the economic effects of ESG disclosure across micro, meso, and macro levels. At the micro level, ESG disclosure reduces information asymmetry, lowers financing costs, improves operational performance, and enhances risk management. However, these effects are highly heterogeneous and influenced by factors such as firm size, industry type, and ownership structure. At the meso level, ESG promotes efficient resource allocation in markets, curbs stock market manipulation, and strengthens investor confidence, thereby contributing to healthier retail and capital markets. At the macro level, ESG disclosure drives green economic transformation, fosters regional coordinated development, and enhances international competitiveness and national image. Current research remains fragmented, often focusing on isolated aspects or specific markets. Future studies should further quantify the differential impacts of ESG and strengthen disclosure frameworks and transparency to support high-quality and sustainable economic development.