5.2.4. Country–cultural Dimensions (H4)

The results show that country–cultural dimensions have mixed results within the disclosure of ESG. Within the regressions, country–cultural dimensions adapt dummy variables based on Li et al. summary of cultural dimensions for the country [15]. Regarding Hypothesis 4a with individualism and collectivist country–cultural dimension, there is a positive relationship with cultures with an individualism culture with a correlation of environmental disclosure score of 0.285, identifying how environmental disclosure is higher with individualism and is seen as the most important factor, within this culture, with respect to gaining the highest firm benefits. Regarding Hypothesis 4b, there is a positive association between femininity culture and the disclosure of ESG. However, there is no significant negative correlation with the GD score of −0.0175. These results suggest that a culture of femininity is significant in the disclosure of ESG scores. This result is consistent with feminine societies that focus on other members of the society [8]. Our results mirror previous reports that a country with a feminine society may see ESG disclosure as an obligation to society; thus, this creates less incentive towards ESG disclosure as it is to maintain legitimacy rather than create it [78]. As such, a feminine society sees social needs and harmonization of stakeholders. For Hypothesis 4c, the association between low uncertainty avoidance and the ESG disclosure score is rejected, as there is only a significant level in the SD score. ESG and ESD are 0.00451 and −0.00997, showing very low correlations with uncertainty and ESG disclosure scores. This result mirrors previous literature focused on the social pillar; uncertainty avoidant societies mean that risk-taking is discouraged, and societies are likely to have an increased demand for information focusing mainly on the social level of ESG disclosure as seen in our results [77]. The results provide further empirical support for our multi-theoretical framework, which provides insights into legitimacy and institutional theories. For example, the country–cultural dimensions of firms depend on the social structure already encompassed at the country-level. Keeping such practices provides legitimacy as it is following the norms of that culture. Table 5 shows that the overall disclosure of ESG is positively associated with the four hypotheses.
