Boasting and concealing: the impact of public data openness on corporate ESG information disclosure strategic behavior

Purpose – In recent years, the disclosure of corporate environmental, social and governance (ESG) information has exhibited a trend of superficial compliance, concealing a more complex and diverse reality. Companies may either highlight their ESG performance or obscure negative information. Public data openness (PDO) may provide a critical mechanism for regulating these strategic behaviors. This study aims to identify and regulate ESG strategic behaviors (ESG_SB) by examining the impact of PDO on ESG_SB. Design/methodology/approach – To provide empirical evidence supporting the authors’ theoretical perspective, an empirical test is conducted based on the Multi-differences-in-differences model, using 15 years of data from Chinese listed companies. Findings – PDO helps curb ESG_SB, with bank loans, institutional investment and corporate internal controls acting as partial mediators in this relationship. Heterogeneity analysis reveals that the restraining effect of PDO on ESG_SB varies across ownership structures, stages of the corporate lifecycle and market institutional environments. Additionally, financial constraints positively moderate the suppression of both greenwashing and brownwashing behaviors by PDO. The robustness of these findings is confirmed through variable substitution, model modification and outlier removal. Originality/value – By systematically revealing whether, how and under what circumstances PDO curbs firms’ ESG_SB, this study provides important insights for regulatory authorities aiming to improve ESG information disclosure systems and promote collaboration between government and enterprises in advancing ESG development.