Author(s)

Yutong Jiang, Xi Wang

Corresponding Author

Yutong Jiang

Abstract

Based on the theory of double materiality, this study empirically examines the impact and internal mechanism of ESG disclosure quality on human capital efficiency. The first step is to take China's A-share listed companies from 2018 to 2023 as a sample to construct a fixed-effect model for benchmark regression. The results show that the quality of ESG disclosure has a significant positive effect on the human capital efficiency (measured by per capita operating income and per capita net profit). Specifically, for every unit of improvement in ESG disclosure quality, the per capita operating income and per capita net profit of the enterprise increased significantly by 52.3% and 47.8%, respectively. In the second step, the mediating effect model is used to test its mechanism, and it is found that the quality of ESG disclosure mainly affects human capital efficiency through the "value identity" path (mediated by employee satisfaction and organizational identity), which is about 25.23%, which is significantly higher than that of the "financial resources" path (about 10.51%). In the third step, heterogeneity analysis shows that the human capital effect of ESG disclosure quality is more significant in highly polluting industries, state-owned enterprises, developed regions and high-dual importance enterprises. This study enriches the research on the economic consequences of ESG disclosure from the perspective of human capital, and provides empirical evidence for enterprises to optimize ESG information disclosure strategies and the government to improve ESG regulatory policies.

Keywords

ESG Disclosure; Human Capital Efficiency; Double Importance; Value Recognition; Heterogeneity Analysis