Employee Usage of Accounting and ESG Information: A Survey of Employee Awareness, Usage, and Perception of Accounting and ESG Information

Abstract

This thesis investigates whether, how, and for what purposes employees use accounting and ESG (Environmental, Social, and Governance) information when evaluating current or potential employers. While investors and creditors are traditionally viewed as the primary users of corporate disclosures, this study explores the emerging perspective that employees may also act as informed stakeholders, using financial and sustainability information to guide career decisions. Building on a survey comprising 758 respondents and an embedded experimental design, this research provides insights on employees’ self-reported and actual knowledge of their employers’ financial and ESG performance, the relevance they assign to different information types, and how such information shape employment-related decisions. The findings reveal a significant gap between perceived and actual knowledge: although a majority of employees believe they are well-informed, objective tests suggest their financial knowledge is often limited. Employees primarily prioritise growth and profitability metrics over risk, while within ESG dimensions, social and governance aspects are deemed more relevant than environmental factors. The study also finds that the majority of employees do not consult public financial statements directly; instead, they rely heavily on internal communications and management briefings. The embedded experiment demonstrates that transparent financial information can help shape wage expectations, although it has limited immediate impact on turnover intentions. Employees exposed to information about their company’s financial performance adjusted their salary expectations downward when no industry benchmarks were provided, highlighting the importance of contextualising financial information. This thesis contributes to the understanding of employees as active consumers of financial and ESG information, with implications for corporate transparency practices and requirements. The results underscore the importance of improving both the accessibility and comprehensibility of financial and ESG disclosures to ensure that all employee groups can engage meaningfully with such information.