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

Halimah, Nanies Putri; Irsyanti, Alfiana; Aini, Lutfi Rohmah

doi:10.33312/ijar.502

Cited by 5 publications

(3 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Our results evidence that sustainability rankings are a tool to signal the sustainability levels of an organization, contributing to the detected gap in the literature in this field. Moreover, we highlight that previous studies focus on sustainability reporting as a way to signal (Halimah et al, 2020), but they do not consider either the implications of signaling or the interaction with the sustainability committee.…”

Section: Discussionmentioning

confidence: 99%

The mediating effect of sustainability strategy between sustainability committees and business performance: can persistent assessment condition this effect?

Arceiz

Rio

Pérez-Grueso

2022

SAMPJ

View full text Add to dashboard Cite

Purpose This study aims to analyse the role of persistence in the assessments carried out by sustainability agencies in the interaction between sustainability committee characteristics, sustainability strategies and performance. Design/methodology/approach The authors accessed a sample of European sustainable multinational and transnational companies (EMNs) for the period 2008–2017 from RobecoSAM universe. Using a set of simultaneous equation models, the authors test the effect of the sustainability committee on sustainability performance considering the sustainability strategy as a mediating element. Moreover, the authors analysed if the persistent assessment of sustainability agencies conditions the previous interaction. Findings Persistence of the sustainability assessment performed by an external agency is necessary to support the sustainability strategy and the sustainability committee, legitimating an organization in its institutional context. Practical implications This study provides practitioners with relevant insights into the identification of the sustainability strategy followed by an EMN and the effects associated with it can be useful for social and economic agents in decision-making processes. Social implications A persistent assessment could be a signal over time of the evolution of organizations, reinforcing the monitoring mechanisms. It is a stimulus to EMNs as they obtain both an indicator of their levels of performance and public recognition. Originality/value The lack of similarity in the levels of sustainable performance observed among companies can be explained by the persistence, which is an omitted variable in previous studies.

show abstract

Section: Discussionmentioning

confidence: 99%

The mediating effect of sustainability strategy between sustainability committees and business performance: can persistent assessment condition this effect?

Arceiz

Rio

Pérez-Grueso

2022

SAMPJ

View full text Add to dashboard Cite

show abstract

“…Sustainability reporting is an important part of corporate social responsibility (CSR). Halimah et al (2020) discussed the effect of CSR on stock prices in Indonesia and Malaysia. However, the analysis finds that in Malaysia, there is a more robust connection between sustainability reporting and firm price.…”

Section: Literature Reviewmentioning

confidence: 99%

Concentrated Ownership and Corporate Social Responsibility: Insights from Indian Companies

Potharla

2023

IJAR

View full text Add to dashboard Cite

This study examined the complex relationship between ownership structures, family business dynamics, group affiliations, and Corporate Social Responsibility (CSR) expenditures on the Indian market from 2010 to 2022. Using 10,684 observations representing 1,882 Indian companies, this study analyzed block holder investment size, coalition effect, and contestability factors. This study hypothesized and found empirical evidence indicating that family businesses with substantial promoter holdings allocate fewer resources to CSR, primarily due to their propensity to maintain control and conserve resources. In addition, the study reveals the significant effects of power dynamics within organizations, competitive landscapes, and group affiliations on CSR initiatives. The findings are important to various stakeholders, including retail and institutional investors, government bodies, non-governmental organizations, consumers, and suppliers, as they provide insights to advance responsible business practices and foster a more sustainable and socially responsible business environment.

show abstract

“…Corporate sustainability is synonymous with ESG, This study focuses on the shareholders' perspective, which currently places greater interest on environmental, social and governance impacts on their investment decisions. This paper has contributed to the existing literature in several ways: First, even though both countries have similar average ESG scores (Halimah et al, 2020), this study used different variables for a longer sample period and used return on equity (ROE) as a proxy of financial performance since it aimed to elaborate its findings from the shareholders' perspective. Second, this study used data from Malaysia and Indonesia, contributing to the literature on ESG practice in emerging economies.…”

Section: Introductionmentioning

confidence: 99%

Corporate Sustainability and Firms' Financial Performance: Evidence from Malaysian and Indonesian Public Listed Companies

ISMAIL¹,

Anridho²,

ISA³

et al. 2022

IJEM

View full text Add to dashboard Cite

The aim of study is to examine the impact of corporate sustainability (ESG) on the financial performance for Malaysia and Indonesia. A sample was selected comprising of 36 companies listed in Bursa Malaysia and 24 companies listed in Indonesia Stock Exchange over the ten-year period 2010-2019. Using fixed effect (FE) and pooled OLS suggest that ESG practices are positively associated with financial performance. This result implies that companies engaged in environmental, social and governance aspects have a higher shareholder value. A good economy condition encouraged companies to integrate ESG aspects and rewarded investors with good financial return (ROE). Companies with lesser governance practice would increase shareholders value (ROE). Essentially, this empirical evidence confirms stakeholder’s theory and agency theory. The implication of this study is to strengthen the development of sustainability from ESG practice and in line with current agenda of sustainable finance for the policymakers. Indeed, this study encourages more potential investors to invest companies with ESG practices.

show abstract

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

Cited by 5 publications

References 36 publications

The mediating effect of sustainability strategy between sustainability committees and business performance: can persistent assessment condition this effect?

The mediating effect of sustainability strategy between sustainability committees and business performance: can persistent assessment condition this effect?

Concentrated Ownership and Corporate Social Responsibility: Insights from Indian Companies

Corporate Sustainability and Firms' Financial Performance: Evidence from Malaysian and Indonesian Public Listed Companies

Contact Info

Product

Resources

About