The Impact of Environmental, Social, and Governance Disclosure on Research and Development Investment: The Mediating Role of External Financing

This study investigates the relationship between environmental, social and governance (ESG) disclosure and firms’ research and development (R&D) spending, with a focus on the mediating function of external financing. The research employs a panel data research design using firm-level financial data. The sample includes ۱۵۲ enterprises that are listed on the Tehran Stock Exchange throughout the period ۲۰۱۵-۲۰۲۴. Firm-level data on financial and ESG-related issues were acquired from public filings in the CODAL database. The panel data were analyzed in Stata. The results implied that more R&D spending is linked to better ESG disclosure. Moreover, external funding positively affects R&D investment and somehow mediates the relationship between ESG disclosure and R&D expenditure. The study presented an integrated analysis of the relationship between ESG disclosure and enterprises' innovation-related investment decisions by investigating ESG dimensions with external finance. The results added to the expanding literature on ESG and business innovation by identifying the financial pathways via which ESG disclosure can affect long-term investment behavior.

کلیدواژه ها:

Environmental ، External Financing ، Research and Development Investment ، Social Governance (ESG) Disclosure