Impact of Environmental, Social and Governance (ESG) Disclosures on Stock Returns: With Special Reference to Listed Firms in Colombo Stock Exchange

This is a study investigate the impact of ESG disclosures on stock returns of 52 listed companies in Sri Lanka, after removing non- ESG reporting entities and financial sector institutions by utilizing a quantitative approach and gathered annual secondary data for ten years (2014-2023). The Pearson’s correlation coefficient and panel regression method have been used to evaluate the hypotheses. Findings emphasize that all three types of disclosures positively impact on stock returns. This study enhances the scholarly discussion on sustainable business practices and holds practical significance for corporate bodies, investors, and policy makers to make effective decisions.