Exploring the nexus between earnings quality and ESG disclosure: A systematic literature review

Abstract

In the context of corporate finance and sustainability research, the relationship between Earnings Quality (EQ) and Environmental, Social, and Governance (ESG) disclosure has recently gained popularity. Therefore, this study aims to present a systematic review of the existing findings on EQ and ESG disclosure relationships, attempting to identify current trends and research gaps. This article reviewed comprehensively peer-reviewed articles, empirical studies, and theoretical frameworks to construct an overall understanding of how EQ interacts with the disclosure practices of ESG by strictly following a set of predefined inclusion and exclusion criteria.