Goa, Aug 12: A study conducted by researcher from Goa Institute of Management (GIM) has revealed that banks with strong Environmental, Social and Governance (ESG) disclosures are less likely to engage in earnings manipulation. Using Bloomberg ESG disclosure scores, Dr. Gupta found a negative relationship between ESG reporting and earnings management, indicating that banks providing comprehensive ESG disclosures tend to report earnings more transparently. If ESG reporting can inhibit managerial discretion and improve transparency anywhere, the study suggests, it is in the banking sector.” The research also explored how major global developments, such as the Paris Agreement and the COVID-19 pandemic, influenced banks’ ESG reporting behaviour. Speaking about the significance of the study, Dr. Gupta said, “The study is particularly significant because it fills an important gap in the existing literature.