Data Asset Disclosure and ESG Rating Divergence

Research Article
Open access

Data Asset Disclosure and ESG Rating Divergence

Zizhuo Li 1*
  • 1 Business School, University of New South Wales, Sydney, Australia    
  • *corresponding author zizhuo.zena.li@gmail.com
AEMPS Vol.185
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-141-9
ISBN (Online): 978-1-80590-142-6

Abstract

This study examines whether and how data asset disclosure affects ESG rating divergence. Based on a sample of A-share listed companies in China from 2007 to 2023, this study empirically examines the impact of data asset disclosure on ESG rating divergence using a fixed-effect model and multiple robustness tests. The results indicate that data asset disclosure significantly reduces ESG rating divergence. Mechanism tests indicate that data asset disclosure reduces ESG rating divergence through enhancing information transparency, improving green disclosure practices, and lowering earnings management. Heterogeneity tests find that the mitigation effect of data asset disclosure is more pronounced in non-state-owned enterprises and institutional firms with lower investor ownership. This study offers empirical evidence for firms aiming to reduce ESG rating divergence via strategic data disclosure.

Keywords:

Data asset disclosure, ESG rating divergence, Information transparency, Corporate governance, Chinese A-share Market

Li,Z. (2025). Data Asset Disclosure and ESG Rating Divergence. Advances in Economics, Management and Political Sciences,185,7-23.
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References

[1]. Pollman, Elizabeth. (2024). The making and meaning of egg. Harvard Business Law Review, 14(2), 403-454.

[2]. Xu, T., Shi, H., Shi, Y., & You, J. (2023). From data to data asset: conceptual evolution and strategic imperatives in the digital economy era. Asia Pacific Journal of Innovation and Entrepreneurship, 18(1), 2-20.

[3]. Hu, C., Li, Y., & Zheng, X. (2022). Data assets, information uses, and operational efficiency. Applied Economics, 54(60), 6887-6900.

[4]. Gao, X., Liu, J., & Lu, H. (2025). Accounting for Data Assets. Available at SSRN 5164215.

[5]. Sun, X., & Du, Z. (2024). Enhancing capital market efficiency: The role of data assets disclosure in reducing stock price synchronicity. International Review of Economics & Finance, 94, 103351. ; Finance, 94, 103351.

[6]. Zhao, Y., Tu, Z., & Chen, S. (2024). A Study of the Impact of Data Assets on the Investment Efficiency of Firms. Advances in Economics, Management and Political Sciences, 104, 243-258.

[7]. Qian, K., Pan, C., & Liang, X. (2025). Does data asset disclosure affect bank lending acquisition? International Review of Financial Analysis, 97, 103834.

[8]. Eccles, R. G., & Serafeim, G. (2013). The performance frontier. Harvard business review, 91(5), 50-60.

[9]. Berg, F., Kölbel, J. F., & Rigobon, R. (2022). Aggregate confusion: the divergence of ESG ratings. Review of Finance, 26(6), 1315-1344

[10]. Lyon, T. P., & Montgomery, A. W. (2015). The means and end of greenwash. organization & environment, 28(2), 223-249.

[11]. Ilhan, E., Sautner, Z., & Vilkov, G. (2021). Carbon tail risk. the Review of Financial Studies, 34(3), 1540-1571.

[12]. Zhou, J., Lei, X., & Yu, J. (2024). ESG rating divergence and corporate green innovation. Business Strategy and the Environment, 33(4), 2911-2930.

[13]. Mao, Z., Wang, S., & Lin, Y. E. (2024). ESG, ESG rating divergence and earnings management: Evidence from China. Corporate Social Responsibility and Environmental Management, 31(4), 3328- 3347.

[14]. Liao, Y., & Wu, Y. (2024). An analysis of the influence of ESG rating divergence on investor sentiment. International Journal of Global Economics and Management, 3(1), 162-177.

[15]. Gibson, R., Glossner, S., Krueger, P., Matos, P., & Steffen, T. (2020). Responsible institutional investing around the world (No. 20-13). Swiss Finance Institute.

[16]. Christensen, D. M., Serafeim, G., & Sikochi, A. (2022). Why is corporate virtue in the eye of the beholder? The case of ESG ratings. The Accounting Review, 97(1), 147-175.

[17]. Arayssi, M., Jizi, M., & Tabaja, H. H. (2020). The impact of board composition on the level of ESG disclosures in GCC countries. Sustainability Accounting, Management and Policy Journal, 11(1), 137- 161.

[18]. Akerlof, G. A. (1978). The market for "lemons": quality uncertainty and the market mechanism. in Uncertainty in economics (pp. 235-251). Academic Press.

[19]. Christensen, H. B., Hail, L., & Leuz, C. (2022). Mandatory CSR and sustainability reporting: economic analysis and literature review. Review of Accounting Studies, 27(3), 1176-1248.

[20]. Chatterji, A. K., Durand, R., Levine, D. I., & Touboul, S. (2016). Do ratings of firms converge? Implications for managers, investors, and strategy researchers. strategic management journal, 37(8), 1597-1614.

[21]. Flammer, C. (2021). Corporate green bonds. Journal of financial economics, 142(2), 499-516.

[22]. Spence, M. (1978). Job market signaling. in Uncertainty in economics (pp. 281-306). Academic Press.

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[24]. Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature. journal of accounting and economics, 31(1-3), 405-440.

[25]. Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social responsibility? The accounting review, 87(3), 761-796.

[26]. Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary non-financial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. the accounting review The accounting review , 86(1), 59-100.

[27]. Bonsall IV, S. B., Leone, A. J., Miller, B. P., & Rennekamp, K. (2017). A plain English measure of financial reporting readability. Journal of Accounting and Economics, 63(2-3), 329-357.

[28]. Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: a review of the proxies, their determinants and their consequences. Journal of accounting and economics, 50(2-3), 344 -401.

[29]. Eppler, M. J., & Mengis, J. (2008). The Concept of Information Overload-A Review of Literature from Organization Science, Accounting, Marketing, MIS, and Related Disciplines (2004) The Information Society: An International Journal, 20 (5), 2004, pp. 1-20. Kommunikationsmanagement im Wandel: Beiträge aus 10 Jahren= Kommunikationsmanagement im Wandel: Beiträge aus 10 Jahren= mcminstitute, 271-305.

[30]. Freeman, R. E. (2010). Strategic management: a stakeholder approach. Cambridge University Press.

[31]. Freeman, R. E. (2010). Strategic management: a stakeholder approach. Cambridge University Press.

[32]. Wang, H., Jiao, S., Ge, C., & Sun, G. (2024). Corporate ESG rating divergence and excess stock returns. Energy Economics, 129, 107276.

[33]. Davis, E. P., & Steil, B. (2004). Institutional investors. mit press.


Cite this article

Li,Z. (2025). Data Asset Disclosure and ESG Rating Divergence. Advances in Economics, Management and Political Sciences,185,7-23.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: Innovating in Management and Economic Development

ISBN:978-1-80590-141-9(Print) / 978-1-80590-142-6(Online)
Editor:Florian Marcel Nuţă Nuţă, Ahsan Ali Ashraf
Conference date: 23 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.185
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Pollman, Elizabeth. (2024). The making and meaning of egg. Harvard Business Law Review, 14(2), 403-454.

[2]. Xu, T., Shi, H., Shi, Y., & You, J. (2023). From data to data asset: conceptual evolution and strategic imperatives in the digital economy era. Asia Pacific Journal of Innovation and Entrepreneurship, 18(1), 2-20.

[3]. Hu, C., Li, Y., & Zheng, X. (2022). Data assets, information uses, and operational efficiency. Applied Economics, 54(60), 6887-6900.

[4]. Gao, X., Liu, J., & Lu, H. (2025). Accounting for Data Assets. Available at SSRN 5164215.

[5]. Sun, X., & Du, Z. (2024). Enhancing capital market efficiency: The role of data assets disclosure in reducing stock price synchronicity. International Review of Economics & Finance, 94, 103351. ; Finance, 94, 103351.

[6]. Zhao, Y., Tu, Z., & Chen, S. (2024). A Study of the Impact of Data Assets on the Investment Efficiency of Firms. Advances in Economics, Management and Political Sciences, 104, 243-258.

[7]. Qian, K., Pan, C., & Liang, X. (2025). Does data asset disclosure affect bank lending acquisition? International Review of Financial Analysis, 97, 103834.

[8]. Eccles, R. G., & Serafeim, G. (2013). The performance frontier. Harvard business review, 91(5), 50-60.

[9]. Berg, F., Kölbel, J. F., & Rigobon, R. (2022). Aggregate confusion: the divergence of ESG ratings. Review of Finance, 26(6), 1315-1344

[10]. Lyon, T. P., & Montgomery, A. W. (2015). The means and end of greenwash. organization & environment, 28(2), 223-249.

[11]. Ilhan, E., Sautner, Z., & Vilkov, G. (2021). Carbon tail risk. the Review of Financial Studies, 34(3), 1540-1571.

[12]. Zhou, J., Lei, X., & Yu, J. (2024). ESG rating divergence and corporate green innovation. Business Strategy and the Environment, 33(4), 2911-2930.

[13]. Mao, Z., Wang, S., & Lin, Y. E. (2024). ESG, ESG rating divergence and earnings management: Evidence from China. Corporate Social Responsibility and Environmental Management, 31(4), 3328- 3347.

[14]. Liao, Y., & Wu, Y. (2024). An analysis of the influence of ESG rating divergence on investor sentiment. International Journal of Global Economics and Management, 3(1), 162-177.

[15]. Gibson, R., Glossner, S., Krueger, P., Matos, P., & Steffen, T. (2020). Responsible institutional investing around the world (No. 20-13). Swiss Finance Institute.

[16]. Christensen, D. M., Serafeim, G., & Sikochi, A. (2022). Why is corporate virtue in the eye of the beholder? The case of ESG ratings. The Accounting Review, 97(1), 147-175.

[17]. Arayssi, M., Jizi, M., & Tabaja, H. H. (2020). The impact of board composition on the level of ESG disclosures in GCC countries. Sustainability Accounting, Management and Policy Journal, 11(1), 137- 161.

[18]. Akerlof, G. A. (1978). The market for "lemons": quality uncertainty and the market mechanism. in Uncertainty in economics (pp. 235-251). Academic Press.

[19]. Christensen, H. B., Hail, L., & Leuz, C. (2022). Mandatory CSR and sustainability reporting: economic analysis and literature review. Review of Accounting Studies, 27(3), 1176-1248.

[20]. Chatterji, A. K., Durand, R., Levine, D. I., & Touboul, S. (2016). Do ratings of firms converge? Implications for managers, investors, and strategy researchers. strategic management journal, 37(8), 1597-1614.

[21]. Flammer, C. (2021). Corporate green bonds. Journal of financial economics, 142(2), 499-516.

[22]. Spence, M. (1978). Job market signaling. in Uncertainty in economics (pp. 281-306). Academic Press.

[23]. Ben-Amar, W., & Belgacem, I. (2018). Do socially responsible firms provide more readable disclosures in annual reports? Corporate Social Responsibility and Environmental Management, 25(5), 1009-1018.

[24]. Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature. journal of accounting and economics, 31(1-3), 405-440.

[25]. Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social responsibility? The accounting review, 87(3), 761-796.

[26]. Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary non-financial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. the accounting review The accounting review , 86(1), 59-100.

[27]. Bonsall IV, S. B., Leone, A. J., Miller, B. P., & Rennekamp, K. (2017). A plain English measure of financial reporting readability. Journal of Accounting and Economics, 63(2-3), 329-357.

[28]. Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: a review of the proxies, their determinants and their consequences. Journal of accounting and economics, 50(2-3), 344 -401.

[29]. Eppler, M. J., & Mengis, J. (2008). The Concept of Information Overload-A Review of Literature from Organization Science, Accounting, Marketing, MIS, and Related Disciplines (2004) The Information Society: An International Journal, 20 (5), 2004, pp. 1-20. Kommunikationsmanagement im Wandel: Beiträge aus 10 Jahren= Kommunikationsmanagement im Wandel: Beiträge aus 10 Jahren= mcminstitute, 271-305.

[30]. Freeman, R. E. (2010). Strategic management: a stakeholder approach. Cambridge University Press.

[31]. Freeman, R. E. (2010). Strategic management: a stakeholder approach. Cambridge University Press.

[32]. Wang, H., Jiao, S., Ge, C., & Sun, G. (2024). Corporate ESG rating divergence and excess stock returns. Energy Economics, 129, 107276.

[33]. Davis, E. P., & Steil, B. (2004). Institutional investors. mit press.