Sustainability Reporting and Firm Value: Evidence from Singapore-Listed Companies

Loh, Lawrence; Thomas, Thomas; Wang, Yu

doi:10.3390/su9112112

Cited by 162 publications

(184 citation statements)

References 39 publications

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“…In relation to stock prices, Ansari [13] found that sustainability reporting had a positive effect on stock prices of real estate companies. Findings of other studies such as Loh et al [14] and Lourenc¸o et al [15] have shown the usefulness of sustainability reporting. However, previous research findings also show that there are weaknesses in sustainability reporting, such that sustainability reporting is more helpful for internal communication than for external communications [10,16] and that sustainability reporting provides information on the financial value more qualitatively than quantitatively [17].…”

Section: Introductionmentioning

confidence: 75%

“…Increasing the quality of sustainability disclosure over time does not indicate an improvement in financial performance. On the other hand, Loh et al [14] examined and found that firms with sustainability reporting have higher firm values than firms that do not present sustainability reporting. In addition, the quality of sustainability reporting also has an impact on firm value.…”

Section: Value Relevance Of Financial Statementsmentioning

confidence: 99%

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Sustainability Reporting and Value Relevance of Financial Statements

et al. 2018

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This study examines whether information about the winners of the Sustainability Reporting Award (SRA) contributes to the usefulness of the information in financial statements. This study used a sample consisting of 110 winners of SRA (SRA firms) and 110 companies that did not receive SRA (non-SRA firms) from 2008 to 2016. The study found that earnings per share (EPS), earnings per share change (EPSC), and book value per share (BVPS) are value-relevant information. Results of comparison between SRA firms and non-SRA firms show that the positive association between EPS and stock price (P) and the positive association of EPS with stock returns (R) for SRA firms are higher than that for the non-SRA firms. In addition, findings of this study indicate that EPSC is positively associated with R when EPSC and R are measured by Indonesian rupiah (IDR) instead of by percentage, and the positive association between EPSC and R for the SRA firms is higher than that for the non-SRA firms. Thus, the results are sensitive to measures of the variables. However, this study found that value relevance of BVPS for SRA firms is lower than for non-SRA firms. Implication of this study is that information about the winners of SRA contributes to the usefulness of financial statements, especially the information of EPS and EPSC.

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Section: Introductionmentioning

confidence: 75%

Section: Value Relevance Of Financial Statementsmentioning

confidence: 99%

Sustainability Reporting and Value Relevance of Financial Statements

et al. 2018

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“…Accounting and finance researchers have also documented important findings on the benefits of CSR, such as reduced business risk, information asymmetry, cost of capital, insider trading profit and analyst forecast errors and increased customer trust and loyalty, employee retention, productivity, and company reputation. Yet, prior studies do not show a consistent relationship between CSR and firm value, that is, positive [9,10], neutral [11] and negative [12] relationships were all documented.…”

Section: Introductionmentioning

confidence: 84%

“…The supporters of positive relationship are the authors of [9,10], who find a positive relationship between CSR disclosure, measured by voluntary carbon emission disclosure, and stock return. There were positive relationships found between CSR performance and firms' bond price or yield spread [17] and stock return [18].…”

Section: Csr and Value Relevance Of Financial Reportingmentioning

confidence: 99%

CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting

Timbate

Park

2018

Sustainability

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This study examines whether socially responsible firms behave differently from other firms in their financial reporting. Specifically, we question whether firms that are better in their corporate social responsibility (CSR) performance also behave in a responsible manner to maintain their financial reporting quality and whether the market rewards such responsible behaviors. Using data from S&P 500 US companies, we find that socially responsible firms are less likely to manage their earnings. However, we fail to find significant relationships between CSR and investors' perceptions on earnings, measured by stock returns and earnings response coefficient. We interpret the results as investors not fully reflecting the benefits from CSR performance. Our findings are consistent with the notion that CSR activities are motivated by managers' ethical incentives to serve the interests of stakeholders.

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“…As a result, a model of assessing the impact of sustainability performance (SP) on financial performance (FP) was proposed, such a model allows us to assess the financial value of the stability of a company's development [11]. Peculiarities of corporate reporting with the goal of creating a positive image of the company, the advantages of financial and non-financial reporting from the point of view of planning sales volumes are presented in the works of a group of Singaporean scientists [12].…”

Section: Literature Reviewmentioning

confidence: 99%

Company’s strategic success as the basis of its potential sustainability

et al. 2020

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The study of corporate sustainability is becoming more relevant in the world economy, thus the connection between global economic processes and political, environmental and society problems was revealed by authors. Given research is devoted to the analysis of the processes of sustainability of Ukrainian and foreign companies. The results of studies of scientific works and interviews with different countries businessmen showed that the sustainable development of the same company should be considered in several directions, namely, in economic, social and environmental. Supporting new institutional concept research that focuses on the sector problems of company's stability, we have compared theories of corporate sustainability and corporate social responsibility and highlighted the economic dimension as a basis of company's sustainable development. As a result of our research in economic directions of corporate sustainability the Methodology of evaluation of company's sustainability potential was proposed. The suggested methodology can ensure corporate sustainability for the strategic period. Proposed in the paper methodology assesses the strategic potential of company's success, its competitive status and capacity potential, and transform capabilities into competitive advantages. The implementation of the Methodology of evaluation of company's sustainability potential, according to authors view point, can be proposed as the basis of strategic management in forecasting and planning processes in industrial companies.

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Sustainability Reporting and Firm Value: Evidence from Singapore-Listed Companies

Cited by 162 publications

References 39 publications

Sustainability Reporting and Value Relevance of Financial Statements

Sustainability Reporting and Value Relevance of Financial Statements

CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting

Company’s strategic success as the basis of its potential sustainability

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