ESG Disclosure, Financial Determinants, and Market Disruptions A Global Analysis of Corporate Transparency

Environmental, Social, and Governance (ESG) disclosure has become an essential mechanism through which firms signal transparency, resilience, and commitment to sustainable finance, particularly under conditions of economic uncertainty and global market disruptions. Despite growing interest in ESG practices, limited evidence exists on how financial determinants and systemic shocks jointly shape ESG disclosure across countries. This study investigates the macro-level drivers of ESG disclosure by examining the role of financial market development, industry risk composition, institutional quality, and global disruptions within a comparative international framework. Using a balanced panel dataset of eight developed and emerging economies over the period 2010–2022, the analysis employs fixed- and random-effects panel regression techniques to account for unobserved heterogeneity and cross-country variation. The findings reveal that industry composition and economic development are the most robust and consistent predictors of ESG disclosure, indicating that structural characteristics and resource availability play a dominant role in shaping transparency outcomes. Financial market depth and institutional quality contribute primarily through cross-country differences rather than within-country temporal changes, while the effects of geopolitical risks and disruptions remain context-dependent. Subsample analyses further highlight heterogeneity between developed and emerging economies, with financial capacity and governance reforms exerting stronger influence in the latter. Overall, the study advances sustainability literature by positioning ESG disclosure as an outcome of financial architecture and systemic uncertainty, offering policy-relevant insights for regulators, investors, and firms seeking to strengthen ESG transparency as part of long-term climate resilience and sustainable development strategies.