| dc.description.abstract | This paper discusses the stakeholder influences in the Environmental, Social, and
Governance (ESG) reporting of firms listed on the Hong Kong Stock Exchange (HKEX). ESG
reporting in the Hong Kong context is developing because of the strict ESG guidelines developed
by HKEX. Therefore, this paper seeks to research the impact of select stakeholders: investors,
regulatory bodies, and customers on ESG presentation importance in the targeted companies.
Following a quantitative approach, the paper develops a regression model testing how well the
articulation of these pressures is articulated into the quality and scope of ESG reporting. In this
position of ESG research, this paper will focus on the influence the stakeholder-related influences
will have on ESG quality for HKEX-listed companies. The results showed a positive and
significant relationship between board diversity, shareholder pressure, and ESG disclosure quality
scores. This aligns with previous research about the importance of board diversity and shareholder
participation, especially, in the context of Hong Kong where the presence of women on corporate
boards is not quite common and many firms have ownership structures ruled by multiple large
shareholders. However, customer pressure was found to have an adverse relationship with ESG
practices. This can be explained due to the increased operational complexity, the nature of the
industry that firms belong to, and the goals companies choose to focus on. Therefore, the
relationship between variables can vary depending on the cultural, social, economic, and political
context in which the research subject is situated. This study still has some shortcomings in
accurately measuring the impact of customer pressure on ESG reporting; therefore, future research
should dig deeper into this issue and focus on specific industries. | en_US |
