Contribution of Socio-environmental Disclosures and Company Characteristics to Information Asymmetry Minimization: Evidence from Latin America
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Socio-environmental disclosures and company characteristics can play a significant role in reducing information asymmetry. Hence, this research aimed to analyze the contribution of socio-environmental disclosures (ESG) and company characteristics to the minimization of information asymmetry among companies in Latin American countries from 2015 to 2020. The methodology was descriptive, documentary, and quantitative, using multiple linear regression with robust standard errors. The results revealed that governance disclosure had a negative impact on information asymmetry among companies in Chile. Regarding the company characteristics that reduced information asymmetry, the significance of company size (Chile, Colombia, and Mexico), financial leverage (Colombia), systematic risk (Argentina and Brazil), and market-to-book ratio (Brazil) is noteworthy. These findings suggest various contributions of ESG disclosures and company characteristics to information asymmetry minimization within the context of Latin American companies. The results guide company managers in adapting ESG disclosures effectively to reduce information asymmetry. Furthermore, they assist shareholders and stakeholders in evaluating the characteristics to be considered in reducing information asymmetry and encouraging companies to engage in ESG activities, considering the benefits of information asymmetry reduction.
Assimetria de informação, Divulgação, ESG, Empresas, América LatinaAsimetría de información, Divulgación, ESG, empresas, América LatinaInformation asymmetry, Disclosure, ESG, companies, Latin America
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