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The Impact of ESG Disclosure on Financial Performance in Oil and Gas Companies: A Difference-in-Differences Analysis
- 1 Ocean University of China
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Abstract
With increasing global attention on sustainable development and corporate social responsibility, more and more countries and regions are requiring companies to disclose information related to environmental, social, and corporate governance (ESG). Especially in the oil and gas industry, ESG information disclosure has become an important means of measuring corporate governance and sustainable development performance. However, there is still controversy in both academic and practical circles regarding whether ESG disclosure can improve financial performance and its impact on companies fulfilling their fiduciary responsibilities. Therefore, this study aims to explore the impact of ESG disclosure on the financial performance of companies in the oil and gas industry, and analyze its relationship with the fulfillment of trust responsibilities.This study adopts the Difference in Differences (DID) method and selects oil and gas companies affected by ESG disclosure policies as research objects. By comparing the changes in financial performance of these companies before and after policy implementation, the role of ESG information disclosure in improving company transparency and reducing information asymmetry is analyzed. In addition, this study also explored the interactive relationship between ESG disclosure and trust responsibility under different legal frameworks, especially in the application of high environmental risk industries. The research results indicate that active ESG disclosure not only helps improve the long-term financial stability of companies, but also enhances shareholder trust and reduces legal risks, especially in regions with sound policies where the effect is more significant. However, research has also found that ESG disclosure may increase short-term costs and conflict with short-term financial goals in trust obligations.
Keywords
ESG disclosure, Trust responsibility, Financial performance, Difference in Differences (DID), Oil and gas industry
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Cite this article
Guo,Y. (2025). The Impact of ESG Disclosure on Financial Performance in Oil and Gas Companies: A Difference-in-Differences Analysis. Advances in Economics, Management and Political Sciences,138,205-211.
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