<scp>ESG</scp> Disclosures, Legal Systems and Market Value in High‐Impact Economies: A Stakeholder Capitalism Perspective

ABSTRACT The debate over whether environmental, social, and governance (ESG) disclosures drives financial performance continues to captivate corporate research. This study delves into this critical issue by focusing on high‐impact nations—countries distinguished by their substantial greenhouse gas emissions, ecological footprints, and economic power—while considering their distinct legal frameworks. Leveraging the legal origins theory within civil and common law contexts, we analyse data from 281 large firms across six high‐impact nations spanning 2013 to 2022. Based on appropriate panel regression techniques and robust analyses, the findings highlight the financial relevance of ESG in the high‐impact nations and also underlines the significant role of such countries' legal system in determining this relationship. This research is a novel attempt to highlight the strategic value of ESG transparency in key regions and the inherent role of legal systems, by adopting the standardised ‘Stakeholder Capitalism Metrics’ and offers actionable insights for firms, policymakers, and investors.