How do geopolitics and foreign ownership shape corporate sustainability reporting?

A new article published in the Journal of Accounting in Emerging Economies examines how politically motivated foreign ownership influences corporate sustainability disclosure in emerging economies. The study is co-authored by MMTC's Timur Uman Opens in new window., together with Erekle Pirveli and Vakhtang Partsvaniya.

Titled “Russia’s politically motivated foreign ownership and its impact on sustainability disclosure”, the article investigates how Russian foreign ownership affects the scope and quality of sustainability reporting among publicly listed firms in Georgia—a country characterised by geopolitical vulnerability and a high level of foreign capital in strategically important sectors.

Ownership, power, and sustainability reporting

Using firm-level data from 51 publicly traded Georgian companies over the period 2018–2023, the authors analyse how ownership structures relate to corporate sustainability disclosure. Sustainability reporting is assessed using benchmarks from the EU’s Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), allowing the researchers to construct detailed disclosure scores across environmental, social, and governance dimensions.

The findings show that firms with Russian ownership disclose significantly less sustainability information than other firms. The negative effect is particularly pronounced in the social and governance dimensions of sustainability, while environmental disclosures appear less affected—largely due to sector-specific regulatory requirements.

Importantly, the effect is unique to Russian ownership and is not observed for other foreign-owned firms operating in Georgia. The results suggest a pattern of selective reporting, where disclosure practices prioritise managerial discretion over transparency and accountability.

Geopolitics and organisational behaviour

The study contributes to MMTC’s broader research agenda by highlighting how geopolitical power relations, institutional contexts, and ownership structures shape organisational practices. Rather than viewing sustainability disclosure as a purely technical or compliance-driven activity, the article shows how reporting is embedded in political, institutional, and governance dynamics.

By focusing on an emerging economy with high geopolitical exposure, the research also offers insights that are relevant beyond the Georgian context, raising important questions about foreign ownership, accountability, and sustainability reporting in times of heightened global uncertainty.

Publication and authors

The article is published in the Journal of Accounting in Emerging Economies External link, opens in new window. and is authored by:

• Erekle Pirveli, Caucasus University and Corvinus University of Budapest
• Timur Uman, Jönköping International Business School, Jönköping University (MMTC)
• Vakhtang Partsvaniya, Caucasus University