CACTUS CACTUS J Tour Bus Manag Econ CACTUS – Journal of Tourism Business, Management and Economics 2247-3297 ASE Publishing House Bucharest, Romania 10.24818/CTS/7/2025/1.08 cactus-2025-8 Research Article L83, M14, Q56 The impact of ESG disclosure on firm value: evidence from the tourism industry Petrică (Papuc) Iuliana Mădalina https://orcid.org/0009-0008-0929-4611 petricaiuliana16@stud.ase.ro Bucharest University of Economic Studies, Bucharest, Romania 15 6 2025 7 1 1562025 Copyright © 2025, The Author(s) 2025 The Author(s) This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). https://creativecommons.org/licenses/by-nc/4.0/

In light of recent challenges, including climate change initiatives, the need for natural resource preservation, and the impact of the COVID-19 pandemic, the significance of Environmental, Social, and Corporate Governance(ESG) disclosure has reached new heights. The tourism industry, characterized by its reliance on natural resources and interaction with local communities, stands out as a sector where sustainability initiatives are essential not only to mitigate negative impacts but also to improve stakeholder relations. The data was collected from Thomson Reuters' Eikon platform and covers a sample of 117 tourism companies from 2020 to 2022. Using SPSS statistical software, regression modelling was applied to determine the extent to which ESG information is correlated with market value. This paper highlights the key findings, including a significant association between ESG disclosure and firm value in the tourism sector, with ESG values explaining 59.4% of the variation in market value. Positive impacts were observed in two industry subcategories- Hotels, Motels & Cruise Lines and Leisure& Recreation, while Restaurants & Bars showed no significant effect. The originality of this study consists of it examination of the impact of ESG not only within the tourism industry as a whole, but also across its three specific sub-categories, providing a comprehensive perspective on the topic. It contributes to the broader discourse on sustainable business practices and has implications for both companies and investors seeking to harmonise financial and sustainability objectives. Future research could benefit from qualitative approaches to better understand the nuanced relationship between ESG practices and corporate value.

 Keywords ESG firm value sustainable tourism sustainability market value

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