The Impact of CSR Disclosure on Sustainable Finance: Empirical Evidence from ESG Ratings, Green Bonds and Financial Performance

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

🔬研究者:Adds empirical evidence on CSR-financial performance link in the context of ESG ratings and green bonds.

🏢実務担当者:Shows that CSR spending correlates with better ESG ratings and financial returns, justifying investment in CSR initiatives.

🏛政策担当者:Provides support for mandatory CSR disclosure and ESG reporting standards to enhance market efficiency and sustainable finance.

The growing emphasis on sustainability in financial systems has intensified scrutiny of Corporate Social Responsibility (CSR) disclosures as a key driver of sustainable finance. This study examines the relationship between CSR spending, financial performance, and Environmental, Social, and Governance (ESG) metrics, focusing on how CSR transparency influences investor behavior and market outcomes. Using a quantitative research design, the paper analyzes data from 26 publicly listed companies across multiple sectors (2021–2024), assessing correlations between CSR expenditures, Return on Equity (ROE), Return on Assets (ROA), ESG ratings, and transparency indices.Key findings reveal a strong positive correlation between CSR spending and financial performance (ROE: r = 0.628, p < 0.01; ROA: r = 0.732, p < 0.01), suggesting that firms investing more in CSR achieve higher profitability. Additionally, CSR expenditures significantly correlate with higher ESG ratings (r = 0.676, p < 0.01) and transparency (r = 0.718, p < 0.01), reinforcing the role of CSR in ethical governance. Regression analysis indicatesthat governance quality (B = 0.992, p < 0.001) and ESG compliance (B = 0.346, p = 0.011) are key predictors of CSR spending, while MANOVA results confirm that higher-rated firms outperform peers in financial efficiency. The study bridges critical gaps in sustainable finance literature by demonstrating how CSR disclosures function asa signaling mechanism, influencing investor trust and financial mechanisms like green bonds and ESG investing. It provides policy and strategic recommendations for enhancing CSR reporting standards to foster sustainable financial growth.