Perceived Impact of Corporate Environmental, Social, and Governance Disclosures on Attractiveness to Investors: Evidence From a Survey of Report Preparers in Poland

Abstract

Abstract

ABSTRACT This study investigates how organizations preparing ESG disclosures perceive the impact of expanding sustainability reporting regulations on corporate transparency, investor attractiveness, and financial performance, with particular emphasis on environmental and taxonomy‐related disclosures among Polish enterprises. Grounded in shareholder primacy theory, legitimacy theory, and institutional theory, the study examines whether ESG disclosures are increasingly perceived as instruments of investor communication and value creation or primarily as compliance‐oriented reporting obligations within an evolving regulatory environment. Based on a questionnaire of 325 listed and non‐listed companies, the study explores how organizational characteristics, including size, industry, and market participation shape these perceptions. The findings suggest that ESG disclosures are generally perceived as enhancing transparency and comparability of sustainability reporting and, to some extent, strengthening investor trust. However, respondents expressed considerably more cautious views regarding the direct influence of taxonomy‐related disclosures on investor decision‐making and financial performance. The results further indicate that larger and more market‐oriented entities tend to perceive ESG reporting more positively, particularly in relation to disclosure quality and investor relevance. At the same time, many organizations continue to perceive ESG disclosures primarily through the lens of regulatory compliance rather than as a strategic mechanism supporting firm value creation. The study contributes to the literature by highlighting the tension between the growing institutionalization of ESG reporting requirements and the still‐evolving perception of their market and financial relevance. The findings suggest that, in evolving ESG reporting environments such as Poland, the translation of regulatory pressure into perceived investor value remains incomplete. By focusing on the organizational perspective of ESG report preparers in a Central and Eastern European context, the study provides insights into how firms interpret and operationalize sustainability reporting obligations in an environment where ESG reporting practices and investor expectations are still developing. The findings offer insights for policymakers and corporate decision‐makers regarding the practical interpretation and implementation of emerging sustainability reporting requirements.