The risk–ESG nexus: examining how corporate risk disclosures influence ESG reporting in UAE companies

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:This paper offers a first empirical test of the risk-ESG nexus in the UAE, providing a foundation for future research on integrated disclosure in emerging markets.

🏢実務担当者:Corporate sustainability teams can learn how risk disclosure levels correlate with ESG ratings, which may inform their own reporting strategies to meet stakeholder expectations.

🏛政策担当者:UAE regulators can use these findings to justify mandatory sustainability reporting frameworks; global policymakers may note the importance of risk disclosure in enhancing ESG transparency.

The purpose of this paper is to examine the association between the level of risk disclosure (RD) and ESG disclosure of non-financial firms listed in Abu Dhabi Stock Exchange (ADX) and Dubai Financial Market (DFM), using Refinitiv Financial Solutions Database that concurs with increased legislation and increased public awareness of ESG issues. For this research, data were collected from 44 non-financial listed firms using content analysis to estimate the level of RD. ESG data were extracted from the Refinitiv Financial Solutions Database. This study observed these firms over the period from 2018 to 2023. An ordered logit model was employed to estimate the model. The research findings show: First, RD increased considerably from 2018 to 2021 as a result of the socio-economic circumstances caused by the COVID-19 pandemic. However, it decreased in 2022 and 2023. Second, the highest average ESG performance rating is observed in the logistics sector, while the lowest ESG performance ratings are observed in the transportation and construction sectors; the average industry ESG rating scale is “C”. Third, firms with higher ESG rating scales report more risk-related information in their annual reports. Fourth, financially performant firms and younger firms demonstrate better corporate governance ratings. The findings have important policy implications, particularly for UAE regulators to strengthen ESG disclosure regulations and develop mandatory sustainability reporting frameworks aligned with international standards to enhance corporate transparency and accountability. This paper offers significant practical and theoretical contributions. Practically, it provides UAE policymakers and regulators with evidence-based insights into current risk and ESG disclosure practices, enabling them to develop targeted frameworks that enhance corporate transparency and align with international standards. The findings also guide practitioners in improving their disclosure strategies to meet stakeholder and regulatory expectations. Theoretically, this is the first study to examine the association between RD and ESG disclosure using an ESG rating scale in the UAE market. It advances legitimacy and stakeholder theories by demonstrating how firms use integrated disclosure to manage stakeholder pressures in emerging markets. The research provides a foundation for future scholars investigating sustainability reporting in developing economies, particularly in the understudied GCC region.

• semanticscholar https://doi.org/10.1108/msar-02-2025-0071first seen 2026-05-05 23:10:53