An Investigation of Environmental, Social, and Governance (ESG) Disclosures and Their Impact on Stakeholder Trust and Perceived Financial Performance in Phnom Penh, Cambodia

Environmental, Social, and Governance (ESG) disclosures have become a central component of non-financial reporting in modern accounting practice. Yet empirical evidence on how ESG disclosures function as quality and reliability signals in emerging markets, and how they ultimately influence perceived financial performance, remains limited. This study examines how stakeholder perceptions of ESG disclosures influence perceived quality and reliability, stakeholder trust, and perceived company financial performance in Phnom Penh, Cambodia.

Grounded in Signaling Theory and Information Asymmetry, and situated within the broader accounting context of non-financial disclosure and integrated reporting, the study employs a quantitative, cross-sectional design with 507 respondents. Data were analysed using descriptive statistics, reliability analysis, correlation analysis, multiple regression, and mediation analysis. Results show that all three ESG dimensions, environmental, social, and governance, significantly and positively influence stakeholders’ perceived quality and reliability (H1–H3), with environmental disclosures showing the strongest effect. Perceived quality and reliability partially mediates the relationship between ESG disclosures and stakeholder trust (H4), and stakeholder trust strongly predicts perceived company financial performance (H5, β=0.763, R²=0.582).

As supplementary triangulation, ESG quality perceptions also manifest in positive behavioural intentions, including preference to purchase from and recommend ESG-active companies, corroborating the signaling function of ESG disclosures. The Attitude-Behaviour Gap is identified as a contextual moderator, with income-related price sensitivity partially constraining the full translation of quality signals into financial performance perceptions. The study contributes to the accounting and sustainability reporting literature by providing evidence that ESG disclosures function as credible quality and reliability signals in an emerging market, and by highlighting the role of accountants in ensuring the quality and assurance of non-financial disclosures.