Corporate governance, ESG, and innovation transparency: Evidence from French listed firms
Keywords:
Corporate governance, ESG disclosure, R&D transparency, Innovation CSRDAbstract
This paper examines how corporate governance mechanisms influence the voluntary disclosure of research and development (R&D) activities within the broader framework of environmental, social, and governance (ESG) transparency. Drawing on an unbalanced panel of 341 French listed firms over the 2012–2023 period, we explore the role of key board characteristics including independence, gender diversity, size, and CEO duality in shaping the extent and quality of innovation-related disclosure. Using both fixed-effects and system GMM estimations, the study addresses endogeneity concerns and firm-specific heterogeneity. Our findings reveal that board independence and gender diversity are significant drivers of R&D and innovation transparency, consistent with agency and resource dependence theories. Conversely, CEO duality remains negatively associated with disclosure levels, indicating reduced oversight and weaker ESG commitment. Board size exhibits a non-linear effect, suggesting that excessively large boards may hinder communication efficiency. Furthermore, the presence of CSR committees and higher ESG scores contributes to more comprehensive reporting on innovative activities. The findings highlight the complementary relationship between governance quality, sustainability orientation, and R&D disclosure. The study offers insights for policymakers, investors, and corporate leaders seeking to strengthen innovation transparency under the evolving requirements of the CSRD.
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