HERSUGONDO, Hersugondo " ARTIKEL Dr. HERSUGONDO, SE, MM: Institutional pressures, information asymmetry and ESG-washing behavior: insights from a fast-growing economy ". International Journal of Disclosure and Governance.

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Abstract

This study investigates how coercive, normative, and mimetic institutional pressures, along with information asymmetry,
influence the emergence of ESG-washing behavior. Using Kompas100 and non-Kompas100 Index firms as the sampling
frame, a purposive survey was conducted among managers involved in ESG reporting, yielding 327 valid responses. Data
were analyzed using partial least squares structural equation modeling (PLS-SEM). The findings indicate that all three
forms of institutional pressure significantly drive ESG-washing, with information asymmetry being the most influential.
This suggests that limited transparency and inadequate oversight amplify the tendency toward symbolic ESG disclosures
rather than substantive ESG disclosure. By integrating institutional theory with the concept of information asymmetry,
this study provides a novel empirical perspective on ESG-washing in emerging market setting. This study advances the
understanding of how institutional and informational forces interact to shape corporate legitimacy strategies, offering
implications for policymakers, regulators, and stakeholders concerned with improving ESG reporting credibility in devel
oping economies.

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