National Culture and Sustainable Development Goals Disclosure: Evidence from Europe

Abstract

The primary objective of this study is to examine the impact of national culture on the level of Sustainable Development Goals disclosure among European companies. The research aims to determine how cultural values, as defined by Hofstede’s six cultural dimensions (Large vs. Small Power Distance, Individualism vs. Collectivism, Masculinity vs. Femininity, Strong vs. Weak Uncertainty Avoidance, Long-Term vs. Short-term Orientation, and Indulgence vs. Restraint) shape corporate sustainability reporting within the European Union context. The study is based on a quantitative research design using panel data collected from 1,650 publicly listed firms across 21 of 27 EU member states during the period 2019–2024, yielding 9,900 firm-year observations. Data on SDGs disclosure were obtained from the Refinitiv Eikon database, while cultural variables were sourced from Hofstede Insights. Several panel regression models were estimated, progressively incorporating firm-level, country-level, and time- and industry-fixed effects to ensure the robustness of the results. The empirical findings reveal that large Power Distance, Individualism, Masculinity, and Long-Term Orientation have negative and statistically significant effects on SDG disclosure, while strong Uncertainty Avoidance and Indulgence show positive and significant relationships. The robustness tests confirm the consistency of these results across different model specifications. Additionally, firm-specific and country factors—such as the presence of a CSR committee, firm size, profitability, rule of law, board independence and GDP per capita positively influence disclosure levels. The study concludes that national culture plays a crucial role in shaping corporate sustainability transparency, even within a harmonized institutional environment. It recommends that policymakers incorporate cultural awareness into sustainability reporting frameworks and that corporations strengthen governance mechanisms and stakeholder engagement to enhance SDG disclosure. The findings contribute to Stakeholder Theory and Institutional Theory, offering important implications for both academics and practitioners seeking to promote culturally inclusive and transparent sustainability reporting across Europe.