---
title: Environmental, Social, and Governance (ESG) Transparency and Investment Efficiency
url: https://www.ml-quant.com/papers/ssrn/4807534/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4807534
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4807534
featured: 2024-05-01
citations: 2
topic: Corporate Finance
---


# Environmental, Social, and Governance (ESG) Transparency and Investment Efficiency

Enhanced ESG transparency can decrease investment efficiency by overshadowing fundamental stock price information and increasing pressure on ESG performance.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4807534
- Identifier: SSRN 4807534
- Released: 2024-04-25
- First featured: Quant Letter No. 47 (2024-05-01): https://www.ml-quant.com/issues/2024-05-01/
- Citations (Semantic Scholar): 2
- Published in: not yet
- Topic: Corporate Finance

## Related

- [ESG Reputation Risk Matters: An Event Study Based on Social Media Data](https://www.ml-quant.com/papers/arxiv/2307.11571/): The paper examines the influence of social media on shareholders' reactions to Environmental, Social, and Governance-related reputational risks, revealing a significant decrease in abnormal returns after an ESG-risk event.
- [SOE's ESG Performance on Financial Flexibility: The Evidence from the Hong Kong Stock Market](https://www.ml-quant.com/papers/arxiv/2502.14261/): Research shows that Hong Kong companies with strong environmental, social, and governance (ESG) performance between 2018 and 2022 have better financial flexibility, especially in unstable economies.
- [Using firm-level supply chain networks to measure the speed of the energy transition](https://www.ml-quant.com/papers/arxiv/2503.01572/): Research indicates Hungary's transition to low-carbon electricity is too slow to achieve climate neutrality by 2050 due to a 'lock-in' effect.
- [Climate Risk and Corporate Value: Evidence from Temperature Bins and Panel Regression](https://www.ml-quant.com/papers/arxiv/2503.14233/): The study reveals that extreme temperatures significantly decrease the asset value of businesses, with state-owned and foreign-funded firms being more resilient.
- [Optimal dividends for a NatCat insurer in the presence of a climate tipping point](https://www.ml-quant.com/papers/arxiv/2504.19151/): The research investigates the best dividend strategies for an insurance company dealing with natural disaster claims, indicating that a climate tipping point can benefit shareholders looking to maximize dividends.
- [Internal Carbon Price and Firm Performance](https://www.ml-quant.com/papers/ssrn/5252987/): The adoption of internal carbon pricing (ICP) decreases future profitability and stock returns but increases firm valuation, showing investor value in sustainability commitment.