THE IMPACT OF ESG CAMPAIGNS AND SUSTAINABILITY COMMUNICATIONON STOCK PRICE CRASH RISK: A SYSTEMATIC LITERATURE REVIEW

Abstract

This study aims to systematically review the literature on the relationship between environmental, social, and governance (ESG) campaigns, sustainability communication, and stock price crash risk. Although ESG disclosure is increasingly viewed as a mechanism for improving transparency and reducing information asymmetry, recent studies suggest that ESG-related information may also increase market risk when it is inconsistent, symbolic, or associated with greenwashing. Using the SPIDER framework, this systematic literature review examines empirical studies published in Scopus-indexed journals during 2019–2026. The initial search identified 107 documents after applying filters for English-language journal articles, final publication stage, and keywords related to stock price crash risk, ESG, and ESG performance. Following title and abstract screening, quality assessment, and relevance evaluation, nine articles were retained for data extraction and narrative synthesis. The findings indicate that credible ESG and CSR disclosure generally reduce stock price crash risk by improving information transparency, strengthening reputational capital, enhancing external monitoring, and improving firm performance. However, ESG rating divergence, ESG rating disagreement, excessive environmental disclosure, and greenwashing may increase crash risk by creating uncertainty, weakening investor trust, and amplifying information asymmetry. This review contributes to the literature by integrating ESG as both a risk-mitigation mechanism and a potential source of information risk, particularly in the context of energy firms and emerging capital markets.