An Empirical Study on the Impact of Sustainability Reporting on Firm Value
Value relevance is an attractive exploratory topic for firms due to its influence on a firm’s competitiveness. Investigating potential factors that have an impact on firm value can provide management with the insights in how to enhance value. The aim of this paper is to explore the association betw...
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Tomas Bata University in Zlín
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doaj-f92f5cced3154b9c9970dfbfe95009802020-11-25T04:02:10ZengTomas Bata University in ZlínJournal of Competitiveness1804-171X1804-17282020-09-0112311913510.7441/joc.2020.03.07An Empirical Study on the Impact of Sustainability Reporting on Firm ValueThi Thuc Doan Nguyen0https://orcid.org/0000-0003-4758-849XTomas Bata University in Zlín, Faculty of Management and Economics Value relevance is an attractive exploratory topic for firms due to its influence on a firm’s competitiveness. Investigating potential factors that have an impact on firm value can provide management with the insights in how to enhance value. The aim of this paper is to explore the association between sustainability reporting and firm value to gain an awareness of the value relevance of sustainability disclosures. The study concentrates on large listed German firms as research objects to reduce the influence of firm size, legislation and geographic differences. Moreover, instead of observing diverse sustainability reporting guidelines in one research, this paper focuses on the current most popular guidance, the Global Reporting Initiative (GRI). With this focus, it is more likely to achieve a relevant comparability among the firms’ sustainability reporting. This concentration also leads to the main research question of whether large listed German firms which have a higher adherent level to GRI guidance tend to have greater firm value. The research applies Multiple Regression to test the above relationship by involving 485 observations from 97 large listed German firms within the research period from 2013 to 2017. Along with the main model, a robustness test was performed to explore the connection in the context of a four-month period after the year-end deadline to issue sustainability reports in accordance with German Law. The findings indicate a significant negative relation between firm value and a firm’s GRI adherent level of sustainability reporting.https://www.cjournal.cz/index.php?hid=clanek&bid=archiv&cid=378&cp=gri adherent statusfirm valuesustainability reporting |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Thi Thuc Doan Nguyen |
spellingShingle |
Thi Thuc Doan Nguyen An Empirical Study on the Impact of Sustainability Reporting on Firm Value Journal of Competitiveness gri adherent status firm value sustainability reporting |
author_facet |
Thi Thuc Doan Nguyen |
author_sort |
Thi Thuc Doan Nguyen |
title |
An Empirical Study on the Impact of Sustainability Reporting on Firm Value |
title_short |
An Empirical Study on the Impact of Sustainability Reporting on Firm Value |
title_full |
An Empirical Study on the Impact of Sustainability Reporting on Firm Value |
title_fullStr |
An Empirical Study on the Impact of Sustainability Reporting on Firm Value |
title_full_unstemmed |
An Empirical Study on the Impact of Sustainability Reporting on Firm Value |
title_sort |
empirical study on the impact of sustainability reporting on firm value |
publisher |
Tomas Bata University in Zlín |
series |
Journal of Competitiveness |
issn |
1804-171X 1804-1728 |
publishDate |
2020-09-01 |
description |
Value relevance is an attractive exploratory topic for firms due to its influence on a firm’s competitiveness. Investigating potential factors that have an impact on firm value can provide management with the insights in how to enhance value. The aim of this paper is to explore the association between sustainability reporting and firm value to gain an awareness of the value relevance of sustainability disclosures. The study concentrates on large listed German firms as research objects to reduce the influence of firm size, legislation and geographic differences. Moreover, instead of observing diverse sustainability reporting guidelines in one research, this paper focuses on the current most popular guidance, the Global Reporting Initiative (GRI). With this focus, it is more likely to achieve a relevant comparability among the firms’ sustainability reporting. This concentration also leads to the main research question of whether large listed German firms which have a higher adherent level to GRI guidance tend to have greater firm value. The research applies Multiple Regression to test the above relationship by involving 485 observations from 97 large listed German firms within the research period from 2013 to 2017. Along with the main model, a robustness test was performed to explore the connection in the context of a four-month period after the year-end deadline to issue sustainability reports in accordance with German Law. The findings indicate a significant negative relation between firm value and a firm’s GRI adherent level of sustainability reporting. |
topic |
gri adherent status firm value sustainability reporting |
url |
https://www.cjournal.cz/index.php?hid=clanek&bid=archiv&cid=378&cp= |
work_keys_str_mv |
AT thithucdoannguyen anempiricalstudyontheimpactofsustainabilityreportingonfirmvalue AT thithucdoannguyen empiricalstudyontheimpactofsustainabilityreportingonfirmvalue |
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