ESG audits and labor demand! Evidence from France

Independent third-party verification of corporate disclosure is frequently mandated to ensure the accuracy of published information. A key input of this verification process is labor. In recent years, third-party verification of extra-financial information has gained popularity as a policy tool. Little is known about how accounting firms deal with the new qualification requirements, yet labor market implications are crucial to understand the quality of extra-financial information verification. To this end, we explore the labor market outcomes of extra-financial information verification mandates. Using regulatory variation in France, we seek to examine which firms engage in extra-financial information verification and whom they hire in terms of educational and skills background.