Disclosure of Environmental, Social and Governance Information and Stock Liquidity

Articles in Press

Document Type : Research Paper

Authors

1 Department of Accounting, Faculty of Management and Economics, University of Guilan, Rasht, Iran.

2 Department of Economics, Faculty of Management and Economics, University of Guilan, Rasht, Iran.

10.22103/jak.2025.24844.4152

Abstract

Objective: In recent years, the importance of environmental, social and governance (ESG) information disclosure in decision-making processes has increased. These disclosures are recognized as a key component in evaluating company performance and affecting stock liquidity in financial markets. Accordingly, the aim of this study is to investigate the relationship between environmental, social and governance (ESG) disclosure and stock liquidity in companies active in the Tehran Stock Exchange.
 
Method: In order to investigate this issue, this study examined a sample of 125 companies active in the Tehran Stock Exchange during the years 2018 to 2022. The method of this study is applied in terms of its purpose and in terms of its inference method and research design, it is a descriptive-analytical research, of correlational and post-event type. In this study, a multivariate regression model based on mixed data was used to test the hypothesis.
 
Results: The results of the research hypothesis show that disclosure of environmental, social and governance information has a positive and significant effect on stock liquidity; that is, with increasing disclosure of environmental, social and governance information, stock liquidity also increases.
 
Conclusion: Regarding the acceptance of the hypothesis of this research, it can be concluded that with increasing disclosure of environmental, social and governance information, investors gain trust, the information environment improves, information asymmetry decreases, financial performance improves, and ultimately stock liquidity increases.

Keywords

Main Subjects

References

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Articles in Press, Accepted Manuscript
Available Online from 08 September 2025

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  • Receive Date: 26 April 2025
  • Revise Date: 09 August 2025
  • Accept Date: 08 September 2025

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