Asking AI to produce an MBA research theme and proposal: ESG reporting and investment (information from perplexity.ai)
My question 1: "With regarding to the the MBA dissertation topic of "the Hong Kong listed companies' ESG investment trends, ESG reporting and ESG investment strategy", could you highlight the main research issues (including research gaps) and the Hong Kong multimedia reported issues over the past 10 years."
The reply: "Hong Kong–listed companies have rapidly expanded and formalised ESG reporting and investment integration over the past decade, but there remain clear gaps around data quality, strategy integration, impact measurement and smaller issuers, which are increasingly visible in both academic work and local media coverage.
Key research issues and gaps
1. Regulatory-driven vs strategy-driven ESG
HKEX moved from “comply or explain” ESG reporting (2016) to progressively more stringent and soon ISSB‑aligned mandatory climate disclosure under the new ESG Code, with stronger board accountability requirements.
Studies and practitioner surveys note that many firms still treat ESG mainly as a compliance exercise; research gaps include how far ESG is truly embedded in capital allocation, risk management and corporate strategy rather than box‑ticking disclosure.
2. ESG reporting quality, comparability and assurance
PwC’s longitudinal ESG Reporting Studies show disclosure ratios and coverage rising steadily, with nearly all sampled companies now in “moderately” or “well‑disclosed” categories and overall disclosure completeness increasing year on year.
However, there are persistent gaps: limited disclosure on Scope 3 emissions and transition plans, inconsistent metrics across firms, and relatively low levels of external assurance on ESG data; these are highlighted as areas needing deeper academic analysis and standard‑setting.
3. Link between ESG reporting, firm value and risk
- Recent doctoral and academic work for Hong Kong finds that better ESG performance and higher‑quality ESG reporting are associated with higher firm value and lower investment risk, but the evidence base is still narrow in terms of sectors, time periods and methodologies.
Research gaps include: causal identification (beyond correlations), differentiation between E, S and G components, and the role of board characteristics, ownership structure and cross‑listing in shaping this ESG–value–risk relationship.
4. Coverage of SMEs and lower‑tier issuers
- Since 2016, all listed companies, including small and medium‑sized issuers, are required to disclose ESG information, but studies note that smaller firms lag in both the depth and sophistication of ESG reporting and often lack resources or expertise.
There is a gap in granular research on how SME‑type listed companies build ESG capabilities, what drives their ESG investment and whether investors price their ESG performance differently from blue‑chip or HSI constituents.
5. ESG investment strategy and capital allocation
Practitioner surveys indicate more companies are setting net‑zero targets and climate‑related goals (for example, most HSI companies have now pledged net‑zero by 2050), and HKEX’s enhanced rules push firms to disclose ESG‑related strategy, metrics and targets.
Yet evidence on how ESG considerations reshape capex, R&D, divestment from high‑carbon assets or green project selection within Hong Kong‑listed companies is limited; this constitutes a major research gap for an MBA dissertation focused on “ESG investment strategy.”
6. Greenwashing, credibility and stakeholder trust
Opinion pieces and professional reports warn that stronger reporting requirements can both improve transparency and increase reputational risk if disclosures over‑promise relative to real performance, raising concerns about greenwashing.
Empirical work specifically testing for greenwashing (e.g., misalignment between ESG narratives and hard environmental or social outcomes) in Hong Kong remains thin, representing another promising research avenue.
ESG investment and reporting trends (2016–2025)
1. Evolution of HKEX ESG framework
- In 2016, HKEX made ESG reporting effectively mandatory on a “comply or explain” basis, significantly increasing the number of ESG reports from Hong Kong issuers.
Subsequent revisions strengthened board responsibility, required more granular disclosure on governance, environmental and social KPIs, and culminated in the 2024 Consultation Conclusions introducing an ESG Code aligned with ISSB climate standards taking effect from 1 January 2025.
2. Maturation of disclosure practices
PwC’s 2023 study reports that the proportion of “well‑disclosed” companies reached about 79%, with the remainder being “moderately disclosed” and virtually none “under‑disclosed,” indicating a general maturing of ESG reporting among listed firms.
Companies have notably improved disclosure on board supervision of ESG, governance policies and strategies, and monitoring progress against ESG targets, suggesting more systematic ESG governance.
3. Climate‑related and net‑zero commitments
- Recent thematic reviews highlight strong net‑zero commitments among blue‑chip issuers, with more than 80% of Hang Seng Index companies pledging net‑zero by 2050, particularly in property and utilities sectors where net‑zero pledges approach full coverage.
At the same time, studies by KPMG and others show that Scope 1 and 2 emissions disclosure is now common, but Scope 3 coverage remains a major missing link, and transition plans are often high‑level rather than detailed and time‑bound.
4. Stakeholder engagement and lobbying around ESG rules
- Academic research on stakeholder responses to the HKEX ESG consultations finds active lobbying around the move from voluntary to more mandatory ESG reporting, reflecting concerns about compliance costs, competitive impacts and disclosure liability.
- These dynamics open research questions about regulatory capture, the balance between flexibility and comparability, and how lobbying shapes final ESG rule design and corporate behaviour.
Hong Kong media‑reported ESG issues (last 10 years)
1. Scrutiny of climate pledges and reporting “double‑edged sword”
- Local commentary stresses that mandatory climate‑related disclosures will expose whether firms are genuinely meeting climate pledges, describing ESG reporting as a “double‑edged sword” that creates both transparency and reputational risk.
- Media and opinion articles often highlight that, despite net‑zero rhetoric, Hong Kong still faces flatline emissions since around 2020, rising private car usage, plastic waste and biodiversity loss, placing pressure on companies to demonstrate real impact rather than narrative.
2. Concerns about data quality and consistency
Business media pick up on professional surveys showing gaps in Scope 3 reporting, uneven coverage of social metrics and inconsistent use of international frameworks, fuelling concerns about comparability for investors.
Articles also discuss the challenges of aligning with the ISSB and other global standards while keeping reporting costs manageable, especially for smaller issuers, which is portrayed as a practical obstacle to high‑quality ESG reporting.
3. Green finance, transition finance and “ESG label” debates
Hong Kong’s positioning as a regional green‑finance hub means media coverage frequently links listed companies’ ESG performance to eligibility for green bonds, sustainability‑linked loans and transition finance products, and questions whether labelled instruments genuinely support decarbonisation.
Commentators warn that misaligned targets or weak KPIs in sustainability‑linked instruments could undermine confidence in the ESG label, reinforcing calls for more robust disclosure and verification.
4. Governance, social issues and controversies
While E‑topics dominate, Hong Kong media have also reported on labour standards, supply‑chain issues and board diversity, often referencing ESG reports when discussing whether companies are living up to their stated commitments.
There is recurring commentary that governance (board oversight, independence, anti‑corruption systems) is improving in disclosure but still needs to translate into more proactive ESG risk management, including in Mainland‑linked operations.
How you might narrow your dissertation
For an MBA dissertation on “Hong Kong listed companies’ ESG investment trends, ESG reporting and ESG investment strategy,” you could focus on one or two clear gaps:
Quantitatively test how changes in HKEX ESG rules (2016 vs post‑2020 vs post‑ESG Code) affect firms’ capital expenditure patterns, cost of capital or risk metrics.
Compare blue‑chip vs SME issuers on the alignment between ESG narrative (targets, strategies) and concrete investment or performance indicators, using media coverage to identify high‑salience cases.
Examine whether firms with more detailed, ISSB‑aligned climate disclosure (including Scope 3 and transition plans) exhibit different market valuation or analyst coverage than peers with more minimal disclosures."
My question 2: "Could you come up with an MBA research theme, via the pragmatism lens, based on the following key words: ESG reporting in Hong Kong, HK ESG investment strategy, stakeholder trust."
The reply: "A pragmatism lens in MBA research emphasizes practical consequences, real-world applicability and actionable outcomes over abstract theorizing, viewing knowledge as validated by its effectiveness in solving problems like building stakeholder trust through ESG practices.
Proposed MBA Research Theme
"Pragmatic ESG Reporting and Investment Strategies: Enhancing Stakeholder Trust in Hong Kong Listed Companies"
This theme applies pragmatism by focusing on whether HKEX-mandated ESG disclosures and investment strategies deliver tangible trust dividends—measured via investor behavior, reduced cost of capital or reputational resilience—rather than ideological purity.
Pragmatism Framing
- Success metrics include higher institutional ownership, lower volatility during ESG scrutiny or positive media sentiment post-reporting cycles.
Avoids "either-or" debates (e.g., compliance vs. value creation) by testing hybrid strategies that evolve with ISSB-aligned rules effective 2025.
Core Research Questions
- To what extent do high-quality, ISSB-aligned ESG reports (governance, Scope 1-2 emissions, transition plans) practically correlate with stakeholder trust indicators like analyst upgrades or share price stability in Hong Kong firms?
- How do pragmatic ESG investment strategies—e.g., targeted green capex with clear ROI KPIs—enhance trust compared to generic net-zero pledges, especially among SME issuers lagging in disclosure depth?
- What actionable gaps exist between current ESG reporting practices and stakeholder expectations, and how can firms pragmatically close them to minimize greenwashing risks highlighted in local media?
Research Gaps Addressed
|
Gap |
Pragmatic
Angle |
HK
Context Evidence |
|
Reporting
quality vs. trust impact |
Test if
detailed climate disclosures (e.g., scenario analysis) yield measurable trust
gains beyond compliance. |
PwC
studies show 93% "well-disclosed" firms by 2024, but Scope 3 and
assurance lag, eroding investor confidence. |
|
Investment
strategy alignment |
Examine
if ESG-linked capex decisions practically lower risk premiums vs. superficial
targets. |
Net-zero
pledges common in HSI firms, but transition plans vague, per KPMG/ PwC. |
|
Stakeholder-specific
trust |
Differentiate
investor vs. regulatory trust responses to ESG strategies. |
Media
flags "double-edged sword" of disclosures exposing weak
performance. |
Practical Methodology Outline
Quantitative: Panel regression on 100+ HK-listed firms (2016-2025), linking ESG scores (HKEX/PwC data) to trust proxies (e.g., bid-ask spreads, ownership changes).
Qualitative: Interviews with CFOs/investors on pragmatic barriers to trust-building ESG integration.
- Mixed validation: Pre/post-2025 ISSB rules comparison to assess real-world effectiveness.
This theme positions your dissertation as managerially relevant, offering Hong Kong firms a roadmap to leverage ESG for competitive advantage through trust."
My question 3: "Based on the research theme suggest above, please offer a part-time 4-month MBA dissertation proposal with the following information:
The reply: "Part-Time 4-Month MBA Dissertation Proposal: Pragmatic ESG Reporting and Investment Strategies for Stakeholder Trust in Hong Kong Listed Companies
1. Dissertation Report Title
Pragmatic Pathways: How ESG Reporting and Investment Strategies Build Stakeholder Trust in Hong Kong Listed Companies
2. Research Issues and Media-Reported Issues
3 Research Issues (Including Gaps)
Reporting Quality vs. Practical Trust Impact: While HKEX's ISSB-aligned rules (effective 2025) mandate detailed ESG disclosures, a gap persists in empirical evidence linking disclosure depth (e.g., Scope 3, transition plans) to verifiable trust metrics like investor retention or cost of capital reductions.
Investment Strategy Alignment: Firms pledge net-zero targets, but research gaps exist on whether pragmatic, ROI-focused ESG investments (e.g., green capex) outperform generic strategies in fostering trust, particularly for SME issuers with resource constraints.
- Greenwashing and Credibility Risks: Limited studies test how misaligned ESG narratives erode trust, creating a gap in pragmatic frameworks for authentic reporting amid rising regulatory scrutiny.
3 Hong Kong Public Media-Reported Issues
- Disclosure as a "Double-Edged Sword": SCMP op-eds highlight that mandatory reporting exposes weak climate action despite pledges, risking reputational damage if not backed by real investments.
Scope 3 and Assurance Shortfalls: Local business media (e.g., PwC/KPMG coverage) report persistent gaps in emissions data and external verification, undermining investor confidence in HK firms' ESG claims.
- SME Compliance Burdens: Commentary notes smaller listed companies struggle with sophisticated ESG strategies, leading to superficial reporting that media portrays as lagging blue-chips in trust-building.
3. Research Objectives and Questions
3 Research Objectives
To evaluate the pragmatic effectiveness of ESG reporting quality in enhancing stakeholder trust among Hong Kong listed companies.
To assess how targeted ESG investment strategies influence trust outcomes compared to compliance-focused approaches.
To develop actionable recommendations for firms to align ESG practices with stakeholder expectations under evolving HKEX rules.
3 Research Questions
- RQ1: To what extent do high-quality ESG disclosures practically improve stakeholder trust indicators (e.g., ownership stability, sentiment) in Hong Kong listed firms?
- RQ2: How do pragmatic ESG investment strategies (e.g., measurable green initiatives) outperform generic pledges in building trust, especially for SMEs?
- RQ3: What gaps between current ESG practices and stakeholder demands create trust erosion risks, and how can they be pragmatically addressed?
4. Research Methods
2 Primary Methods
- Quantitative Surveys: Online surveys of 50-100 Hong Kong investors/analysts rating trust perceptions based on sampled ESG reports (HKEX-listed firms, 2023-2025), analyzed via regression for correlations with disclosure scores.
Semi-Structured Interviews: 10-15 interviews with CFOs/board members from HK-listed firms (blue-chip and SMEs) on pragmatic ESG strategy challenges, thematically coded for trust-building insights.
1 Secondary Method
Document Analysis: Review of PwC ESG Reporting Studies (2023-2025), HKEX filings and media articles for trends in reporting/investment practices and trust proxies (e.g., market reactions).
5. 4 Academic Theories
|
Theory |
Application
to Theme |
Key
Reference |
|
Pragmatism |
Judges
ESG strategies by practical outcomes like trust gains, emphasizing
actionable, evidence-based reporting over ideology. |
Ramanna,
K. (2023)From confusion to clarity: A pragmatic approach to corporate ESG
accounting. PwC. |
|
Stakeholder
Theory |
ESG
reporting/ investments must address diverse stakeholder needs (investors,
regulators) to build enduring trust. |
Ali, S.,
Alamgir, M. and Hanif, M. (2024) 'Corporate Governance and Reputation: The
Role of ESG Controversies', Pakistan Social Sciences Review, pp. 1-15. |
|
Legitimacy
Theory |
Firms
use ESG disclosures to secure societal approval, but misalignment leads to trust
loss via perceived greenwashing. |
Suchman,
M.C. (1995) 'Managing Legitimacy: Strategic and Institutional
Approaches', Academy of Management Review, 20(3), pp. 571-610. |
|
Signaling
Theory |
High-quality
ESG reports signal credible commitments, reducing information asymmetry and
enhancing reputation/trust. |
Connelly,
B.L. et al. (2011) 'Signaling Theory: A Review and Assessment', Journal of
Management, 37(1), pp. 39-67. |
6. Justification of Proposal
Academic Value: Fills gaps in pragmatism-applied ESG research by linking HK-specific reporting rules to trust empirics, extending stakeholder/legitimacy theories with quantitative-pragmatic validation amid ISSB adoption.
Practical Value: Offers HK-listed firms (especially SMEs) a roadmap for trust-building ESG strategies, reducing greenwashing risks and aligning with 2025 HKEX mandates for better capital access.
Originality Value: First MBA-level study framing Hong Kong ESG through pragmatism, using mixed methods on post-ISSB data (2025-2026) to test real-world trust impacts, differentiating from descriptive PwC-style surveys."
A collection of blog notes on using chatgpt for research purpose.
