Assessing the role of sustainability disclosures in shaping firms’ access to capital: examination of the U.S. tech industry market

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School of Business | Bachelor's thesis
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(Mikkeli) Bachelor’s Program in International Business
25 + 3
This research investigates the dynamic relationship between sustainability disclosures and firms’ access to capital within the U.S. tech market. Spanning five years and various industries, it emphasizes the growing importance of Environmental, Social, and Governance (ESG) factors for stakeholders. The paper explores the complexities surrounding the definition and measurement of sustainability and Corporate Social Responsibility (CSR), highlighting the influence of ESG ratings on firms’ access to capital. Theoretical frameworks, such as stakeholder theory and signalling theory are applied to analyse how companies might benefit from sustainability reporting. Empirical analysis combines financial data with ESG-related sources, including ESG scores and CSR sustainability reporting scores, to examine the impact of sustainability disclosures on access to capital and financial constraints. The findings indicate a correlation between comprehensive ESG disclosures and KZ index, highlighting the financial benefits of sustainable corporate practices. This paper contributes to the sustainability dialogue by exploring the relationship between corporate sustainability initiatives and financial performance. It underscores the need for continuous research and provides a framework for understanding the financial effects of sustainability. By demonstrating the advantages of ESG adherence, the research encourages companies to adopt sustainable practices for both ethical and financial reasons. This study provides valuable insights for stakeholders interested in the connection between sustainability and financial success.
Thesis advisor
Stepanov, Roman
KZ index, regression analysis, CSR, sustainability, access to capital, efficient market hypothesis, ESG
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