Value Relevance of Sustainability Report and Its Impact on Value of Companies

DOI

10.2991/aebmr.k.211124.038How to use a DOI?

Keywords

Sustainability report; Book value; Profit; company value

Abstract

This study aims to examine whether the sustainability report has value relevance for investors and affects the value of the company. Ohlson’s multiple regression model is used as a method with 38 publicly listed companies in 2016-2019 as a sample. The results of the study show that investors use sustainability reports as value-added information in making investment decisions. Investors today are not only focused on short-term profits or company profits, but also the sustainability and long-term profits of the company in order to satisfy all stakeholders. The sustainability report made by the company is considered capable of being a material or aspect of consideration related to investments and helps indicate the long-term prospects of a company Therefore, regulators are expected to immediately issue adequate regulations regarding disclosure in sustainability reports.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Desak Nyoman Sri Werastuti
AU  - Anantawikrama Tungga Atmadja
AU  - I Made Pradana Adiputra
PY  - 2021
DA  - 2021/11/25
TI  - Value Relevance of Sustainability Report and Its Impact on Value of Companies
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 257
EP  - 267
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.038
DO  - 10.2991/aebmr.k.211124.038
ID  - Werastuti2021
ER  -