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ESG Disclosure and Employee Turnover. New Evidence from Listed European Companies

Resource type
Authors/contributors
Title
ESG Disclosure and Employee Turnover. New Evidence from Listed European Companies
Abstract
We explored how company transparency, as measured by ESG (Environmental, Social and Governance) disclosure, affected the employee turnover of 212 multinational corporations that were listed in the European capital market during the 2010-2017 period. We also examined the role of the business environment by looking at the company’s ESG reporting system and its economic sector. To analyze how ESG disclosure affected employee turnover at any point of its conditional distribution, we used a panel data quantile regression model. ESG disclosure was found to be negatively associated with employee turnover. Employee turnover, as well as the extent to which it is affected by ESG disclosure, was found to depend strongly on the conditional distribution of the turnover rate, the sector and whether ESG disclosure is mandatory or voluntary. Our findings were confirmed by a robustness check analysis. In conclusion, the relationship between company transparency and employee turnover depends strongly on the institutional context and, especially, on disclosure regulation. The more a company is scrutinized, the more it will try to be socially responsible to maintain and/or improve its reputation and thus reassure and satisfy its stakeholders.
Publication
Relations industrielles / Industrial Relations
Volume
77
Issue
4
Pages
22 pages
Date
2022
Journal Abbr
ri
Language
en
ISSN
0034-379X, 1703-8138
Accessed
5/19/23, 3:45 PM
Extra
Publisher: Département des relations industrielles de l’Université Laval
Citation
Garsaa, A., & Paulet, E. (2022). ESG Disclosure and Employee Turnover. New Evidence from Listed European Companies. Relations Industrielles / Industrial Relations, 77(4), 22 pages. https://doi.org/10.7202/1097695ar