Sustainability Reporting and Value Relevance of Financial Statements

Sutopo, Bambang; Kot, Sebastian; Adiati, Arum Kusumaningdyah; Ardila, Lina Nur

doi:10.20944/preprints201802.0176.v1

Cited by 20 publications

(24 citation statements)

References 2 publications

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“…According to the results of the questionnaire, enterprise managers and lawyers believe that, for effective logistics management and for maintaining the country's sustainable development, international standards that are characteristic of light legal norms are most influential. The reporting on sustainability support reflects global best practices for publically economic, environmental, and social impacts [28]. As indicated by respondents Principles based on international standards should be integrated into legal norms for effective management.…”

Section: Discussionmentioning

confidence: 99%

Impact of Legal Standards on Logistics Management in the Context of Sustainable Development

Grabara¹,

Dabylova²,

Alibekova³

2020

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In the global context, logistics plays a key and sometimes a decisive role in the industrial development of countries. The legal regulation remains one of the important ways to solve the logistics tasks by enterprises efficiently. The purpose of this study is to assess the impact of legal norms on logistics of enterprises to support sustainable development. The article examines the state of logistics in the members of the Commonwealth of Independent States and their legal norms that affect the countries sustainable development. The research methodology is a survey of companies' managers and lawyers. The Kruskal-Wallis test, ANOVA analysis, Tukey's HSD test are used. Logistics management in enterprises should contribute to the protection of both environmental and social sustainability, because the growing number of customers supporting socially responsible enterprises is observed.

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Section: Discussionmentioning

confidence: 99%

Impact of Legal Standards on Logistics Management in the Context of Sustainable Development

Grabara¹,

Dabylova²,

Alibekova³

2020

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“…Sustainability report is reporting by companies or organizations about the economic, environmental and social impacts caused by their daily activities (Sutopo et al 2018). The triple bottom line was initiated by John Elkington, often called 3P (Profit, People and Planet).…”

Section: Sustainability Reportmentioning

confidence: 99%

The Effect of Sustainability Report and Profitability on Company Value: Evidence from Indonesian Sharia Shares

2019

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<p>The purpose of this research is to determine the effect of sustainability report disclosure and profitability on firm value. Type of this research uses a quantitative method with multiple linear regression of the data analysis techniques. The data used in this research are secondary data. The population of research companies are listed on the Indonesia Sharia Stock Index (ISSI) as of December 29, 2017. The sample used purposive sampling method on 13 company samples. The results of this research indicate that sustainability report does not affect firm value and profitability affects firm value. This study implies that regulators should encourage companies to disclose sustainability reports because there are still a few companies that disclose it. Regulators are also expected to participate in providing socialization so that investors understand the meaning of the sustainability report.</p><p>Tujuan dari penelitian ini adalah untuk mengetahui pengaruh laporan keberlanjutan dan profitabilitas terhadap nilai perusahaan. Penelitian ini menggunakan metode kuantitatif dengan regresi linier berganda. Data dalam penelitian ini adalah data sekunder. Populasi perusahaan penelitian terdaftar di Indeks Saham Syariah Indonesia (ISSI) pada tanggal 29 Desember 2017. Sampel menggunakan metode purposive sampling pada 13 perusahaan. Hasil penelitian menunjukkan bahwa laporan keberlanjutan tidak berpengaruh terhadap nilai perusahaan dan profitabilitas berpengaruh terhadap nilai perusahaan. Studi ini menyiratkan bahwa regulator harus mendorong perusahaan untuk mengungkapkan laporan keberlanjutan karena masih ada beberapa perusahaan yang mengungkapkannya. Regulator juga diharapkan untuk berpartisipasi dalam memberikan sosialisasi sehingga investor memahami arti dari laporan keberlanjutan.</p>

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“…From the perspective of investors, Hellstrom (2006) explains that relevant information is information that contributes to their equity investment decisions and provides a perspective on value relevance that explains the existence of a relationship between the company's market value and financial reporting information that is also in line with Barth et al, (2001) which states that the relevance of accounting information is reflected in the return of stock or company value when investors feel useful benefits. Research that discusses the usefulness of financial information related to investment decision making often uses the term "study of the relevance of accounting information values" because accounting information is considered to be very relevant in determining the intrinsic value of shares and investment decision making as reflected in stock market prices (Sutopo et al, 2018). Ball and Brown (1968) is a researcher who started research on the usefulness of accounting information until later developed by other researchers to date, such as research conducted by Sutopo et al (2018), explains that the relevance of EPS values for sustainability reporting award (SRA) companies are higher than for non-SRA companies.…”

Section: The Value Relevancementioning

confidence: 99%

“…Research that discusses the usefulness of financial information related to investment decision making often uses the term "study of the relevance of accounting information values" because accounting information is considered to be very relevant in determining the intrinsic value of shares and investment decision making as reflected in stock market prices (Sutopo et al, 2018). Ball and Brown (1968) is a researcher who started research on the usefulness of accounting information until later developed by other researchers to date, such as research conducted by Sutopo et al (2018), explains that the relevance of EPS values for sustainability reporting award (SRA) companies are higher than for non-SRA companies. Meanwhile, the relevance of BVPS values for SRA companies is lower than non-SRA companies.…”

Section: The Value Relevancementioning

confidence: 99%

“…Our research is conducted in those countries to represent a different context: mandatory and voluntary adoption. A large number of studies have examined the value relevance of information on company disclosure, whether it is financial information (e.g., Hellstrom, 2006;Nijam and Jahfer, 2018;Kerr, 2019) and/or non-financial information such as sustainability reporting (e.g., Narullia and Subroto, 2018;Sutopo et al, 2018;Cortesi and Vena, 2019). However, some studies are mostly confined only to one context, mandatory or voluntary.…”

Section: Introductionmentioning

confidence: 99%

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The Value Relevance of Sustainability Reporting: Comparison between Malaysia and Indonesia Stock Market

Halimah

Irsyanti

Aini

2020

The Indonesian Journal of Accounting Research

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This study aims to investigate whether information content on sustainability reporting has a significant association with listed companies' share price. We also assess the differential effect of sustainability reporting adoption in the mandatory and voluntary context in developing countries, particularly in Malaysia and Indonesia, for several reasons provided. The final sample was 43 firms in Indonesia and 57 firms in Malaysia. The data in this study used secondary data obtained from Thomson Reuters Datastream. To examine our hypothesis, we apply the regression model. This study provides evidence that information on sustainability reporting has a significant association with the firm's price. This shows that sustainability reporting is relevant because it can make a difference in the user's decision and is measured reliably enough to reflect the value of equity. Another result of this study is that sustainability reporting's value relevance is more robust in the Malaysian stock market than in the Indonesian stock market.

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Sustainability Reporting and Value Relevance of Financial Statements

Cited by 20 publications

References 2 publications

Impact of Legal Standards on Logistics Management in the Context of Sustainable Development

Impact of Legal Standards on Logistics Management in the Context of Sustainable Development

The Effect of Sustainability Report and Profitability on Company Value: Evidence from Indonesian Sharia Shares

The Value Relevance of Sustainability Reporting: Comparison between Malaysia and Indonesia Stock Market

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