Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions

Purpose: This study investigates the relationship between Environmental, Social, and Governance (ESG) disclosure and the cost of debt for Brazilian companies. Additionally, it examines whether regional factors influence the ability to secure third-party financing. Design/methodology/approach: The an...

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Autores: Iglesias, Thayla Machado Guimarães, Peixoto, Fernanda Maciel, Rogers, Pablo, Carvalho, Luciana
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2025
País:Brasil
Institución:Universidade Federal de Santa Maria (UFSM)
Repositorio:Revista de Administração da UFSM
Idioma:inglés
OAI Identifier:oai:ojs.pkp.sfu.ca:article/90538
Acceso en línea:https://periodicos.ufsm.br/reaufsm/article/view/90538
Access Level:acceso abierto
Palabra clave:Cost of debt
ESG Disclosure
Regionality
Custo da dívida
Disclosure ESG
Regionalidade
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network_name_str Brasil
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dc.title.none.fl_str_mv Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
¿LA DIVULGACIÓN ASG IMPACTA EN EL COSTO DE LA DEUDA? UN ANÁLISIS DE BRASIL Y SUS REGIONES
O Disclosure ESG impacta no custo da dívida? Uma análise do Brasil e de suas regiões
title Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
spellingShingle Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
Iglesias, Thayla Machado Guimarães
Cost of debt
ESG Disclosure
Regionality
Custo da dívida
Disclosure ESG
Regionalidade
title_short Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
title_full Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
title_fullStr Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
title_full_unstemmed Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
title_sort Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions
dc.creator.none.fl_str_mv Iglesias, Thayla Machado Guimarães
Peixoto, Fernanda Maciel
Rogers, Pablo
Carvalho, Luciana
author Iglesias, Thayla Machado Guimarães
author_facet Iglesias, Thayla Machado Guimarães
Peixoto, Fernanda Maciel
Rogers, Pablo
Carvalho, Luciana
author_role author
author2 Peixoto, Fernanda Maciel
Rogers, Pablo
Carvalho, Luciana
author2_role author
author
author
dc.subject.por.fl_str_mv Cost of debt
ESG Disclosure
Regionality
Custo da dívida
Disclosure ESG
Regionalidade
topic Cost of debt
ESG Disclosure
Regionality
Custo da dívida
Disclosure ESG
Regionalidade
description Purpose: This study investigates the relationship between Environmental, Social, and Governance (ESG) disclosure and the cost of debt for Brazilian companies. Additionally, it examines whether regional factors influence the ability to secure third-party financing. Design/methodology/approach: The analysis includes 576 firm-year observations from publicly traded, non-financial Brazilian companies listed on Bloomberg for the period 2016–2021. The data were structured using a dynamic System GMM panel (one- or two-step estimators). To assess the role of regionality, a static panel with random effects was employed to examine how Brazil's macroregions influence the cost of debt. Findings: ESG disclosure did not show a significant negative relationship with the cost of debt. Therefore, it cannot be inferred that creditors value ESG transparency or reward firms adopting such practices with lower borrowing costs. However, variations in the cost of debt were observed across Brazil's macroregions. Practical implications: Understanding the effects of ESG disclosure on corporate borrowing in Brazil supports the development of standards for non-financial reporting aimed at greater compliance and transparency in ESG initiatives. Enhanced disclosure can improve communication with investors and society, fostering trust and mitigating risks associated with investment decisions. Originality/value: This study advances ESG disclosure research by focusing on an emerging economy where ESG practices are not yet widely embraced. Moreover, it explores corporate financial behavior through the lens of debt costs, a relatively underexamined perspective in the existing literature.
publishDate 2025
dc.date.none.fl_str_mv 2025-09-19
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.ufsm.br/reaufsm/article/view/90538
10.5902/1983465990538
url https://periodicos.ufsm.br/reaufsm/article/view/90538
identifier_str_mv 10.5902/1983465990538
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://periodicos.ufsm.br/reaufsm/article/view/90538/68083
https://periodicos.ufsm.br/reaufsm/article/view/90538/68477
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
text/xml
dc.publisher.none.fl_str_mv Universidade Federal de Santa Maria
publisher.none.fl_str_mv Universidade Federal de Santa Maria
dc.source.none.fl_str_mv Revista de Administração da UFSM; Vol. 18 No. 3 (2025): Jul-Sep; e4
Revista de Administração da UFSM; Vol. 18 Núm. 3 (2025): Jul-Sep; e4
Revista de Administração da UFSM; v. 18 n. 3 (2025): Jul-Sep; e4
1983-4659
1983-4659
reponame:Revista de Administração da UFSM
instname:Universidade Federal de Santa Maria (UFSM)
instacron:UFSM
instname_str Universidade Federal de Santa Maria (UFSM)
instacron_str UFSM
institution UFSM
reponame_str Revista de Administração da UFSM
collection Revista de Administração da UFSM
repository.name.fl_str_mv Revista de Administração da UFSM - Universidade Federal de Santa Maria (UFSM)
repository.mail.fl_str_mv rea@ufsm.br || centraldeperiodicos@ufsm.br
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spelling Does ESG Disclosure impact on the cost of debt? An analysis of Brazil and its regions ¿LA DIVULGACIÓN ASG IMPACTA EN EL COSTO DE LA DEUDA? UN ANÁLISIS DE BRASIL Y SUS REGIONESO Disclosure ESG impacta no custo da dívida? Uma análise do Brasil e de suas regiõesCost of debtESG DisclosureRegionalityCusto da dívidaDisclosure ESGRegionalidadePurpose: This study investigates the relationship between Environmental, Social, and Governance (ESG) disclosure and the cost of debt for Brazilian companies. Additionally, it examines whether regional factors influence the ability to secure third-party financing. Design/methodology/approach: The analysis includes 576 firm-year observations from publicly traded, non-financial Brazilian companies listed on Bloomberg for the period 2016–2021. The data were structured using a dynamic System GMM panel (one- or two-step estimators). To assess the role of regionality, a static panel with random effects was employed to examine how Brazil's macroregions influence the cost of debt. Findings: ESG disclosure did not show a significant negative relationship with the cost of debt. Therefore, it cannot be inferred that creditors value ESG transparency or reward firms adopting such practices with lower borrowing costs. However, variations in the cost of debt were observed across Brazil's macroregions. Practical implications: Understanding the effects of ESG disclosure on corporate borrowing in Brazil supports the development of standards for non-financial reporting aimed at greater compliance and transparency in ESG initiatives. Enhanced disclosure can improve communication with investors and society, fostering trust and mitigating risks associated with investment decisions. Originality/value: This study advances ESG disclosure research by focusing on an emerging economy where ESG practices are not yet widely embraced. Moreover, it explores corporate financial behavior through the lens of debt costs, a relatively underexamined perspective in the existing literature.Objetivo: Este estudo investiga a relação entre o disclosure ESG (Environmental, Social, and Governance) e o custo de endividamento de empresas brasileiras. Além disso, examina se a regionalidade exerce influência na obtenção de recursos de terceiros. Design/metodologia/abordagem: Analisou-se 576 observações-firmas-ano de empresas brasileiras, não financeiras, de capital aberto pertencentes à Bloomberg no período de 2016 a 2021, estruturadas em um painel dinâmico de System GMM (one ou two-steps). Quanto à regionalidade, adotou-se painel estático com efeitos aleatórios para investigar a influência das macrorregiões do Brasil no custo da dívida. Constatações: O disclosure ESG não apresentou relação negativa e significativa com o custo da dívida. Assim, não se pode inferir que os credores apreciam a transparência das informações ESG e recompensam as firmas que adotam tal prática com custos menores. Entretanto, notou-se diferenças entre as macrorregiões brasileiras no tocante ao custo da dívida. Implicações práticas: Compreender os efeitos do disclosure ESG no endividamento das empresas brasileiras permite o desenvolvimento de padrões para divulgações não financeiras, visando maior conformidade e transparência das iniciativas ESG. Isso melhora a comunicação com os investidores e a sociedade, refletindo em maior confiança e menores riscos associados às decisões de investimento. Originalidade/valor: Este estudo contribui para o avanço das pesquisas sobre disclosure ESG ao concentrar-se em um país emergente, onde as práticas ESG ainda são pouco aceitas. Ademais, explora o comportamento financeiro das empresas sob a ótica do custo da dívida, uma abordagem pouco explorada na literatura sobre o temaUniversidade Federal de Santa Maria2025-09-19info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdftext/xmlhttps://periodicos.ufsm.br/reaufsm/article/view/9053810.5902/1983465990538Revista de Administração da UFSM; Vol. 18 No. 3 (2025): Jul-Sep; e4Revista de Administração da UFSM; Vol. 18 Núm. 3 (2025): Jul-Sep; e4Revista de Administração da UFSM; v. 18 n. 3 (2025): Jul-Sep; e41983-46591983-4659reponame:Revista de Administração da UFSMinstname:Universidade Federal de Santa Maria (UFSM)instacron:UFSMenghttps://periodicos.ufsm.br/reaufsm/article/view/90538/68083https://periodicos.ufsm.br/reaufsm/article/view/90538/68477Copyright (c) 2025 Thayla Machado Guimarães Iglesias, Fernanda Maciel Peixoto, Pablo Rogers, Luciana Carvalhoinfo:eu-repo/semantics/openAccessIglesias, Thayla Machado Guimarães Peixoto, Fernanda MacielRogers, PabloCarvalho, Luciana2025-10-21T19:23:09Zoai:ojs.pkp.sfu.ca:article/90538Revistahttps://periodicos.ufsm.br/reaufsm/indexPUBhttps://periodicos.ufsm.br/reaufsm/oairea@ufsm.br || centraldeperiodicos@ufsm.br1983-46591983-4659opendoar:2025-10-21T19:23:09Revista de Administração da UFSM - Universidade Federal de Santa Maria (UFSM)false
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