Economic Consequences of Mandatory ESG Reporting

We provide early evidence on the capital-market effects around the introduction of mandatory ESG standards reporting. We exploit the staggered introduction of SASB (Sustainability Accounting Standards Board) standards in Chile: in 2023, only the largest firms had the obligation to disclose financial statements using SASB standards. We find an increase in the stock market response to disclosure of annual reports for SASB-reporting firms. We find no effect on stock market liquidity of those firms.