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INVESTMENT EFFICIENCY AND ESG REPORTING TRANSPARENCY IN TAIWANESE COMPANIES: AN INVESTIGATIVE CASE STUDY

Hsien Li Lee

Department of Accounting, Chung Yuan University

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Chun An Chen*

Department of Business Management, Chung Hua University 

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Ming Yan Li

Department of Accounting, Chung Yuan University 

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Abstract

In recent years, the issue of sustainable development has gradually become a topic of discussion among the general public, with whether companies are effectively pursuing sustainable development becoming one of the considerations for investors in making decisions. This study assesses the transparency of ESG reports of companies based on the number of disclosed items compliant with the GRI framework and employs investment efficiency as a measure of overall corporate management to investigate whether corporate management affects the transparency of ESG reports. Using listed and OTC companies in Taiwan as the sample, this study adopts the Heckman two-stage regression model as the research method to explore the relationship between investment efficiency and ESG reporting transparency. The empirical results reveal that companies with higher investment efficiency tend to have a higher degree of compliance with GRI items in their ESG reports.

Key words: ESG, Investment Efficiency, Heckman, Taiwan, GRI