The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level Performance
Purpose: Sustainability reports and integrated information e.g. ESG reports, are utilized by stakeholders for various decision-making processes. Using Taiwan setting, this study examines the effect of ESG reporting quality, including ESG Score, ESG Rating, and ESG Ranking, on financial performance....
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| Format: | Article |
| Language: | English |
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Universitas Negeri Semarang
2024-07-01
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| Series: | Jurnal Dinamika Akuntansi |
| Subjects: | |
| Online Access: | https://journal.unnes.ac.id/journals/jda/article/view/1634 |
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| _version_ | 1850166917380177920 |
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| author | Badingatus Solikhah Pei-Yu Weng |
| author_facet | Badingatus Solikhah Pei-Yu Weng |
| author_sort | Badingatus Solikhah |
| collection | DOAJ |
| description | Purpose: Sustainability reports and integrated information e.g. ESG reports, are utilized by stakeholders for various decision-making processes. Using Taiwan setting, this study examines the effect of ESG reporting quality, including ESG Score, ESG Rating, and ESG Ranking, on financial performance.
Method: We employ 6,386 firm-year observations from Taiwanese non-financial listed companies to test the hypotheses. We investigate the relationship between ESG reporting quality and the financial performance of operating and market indicators at the firm level. We analyze ESG reporting components using the same pattern and perform two kinds of robustness checks, include Covid-19 period check and industry effect testing.
Result: Empirical evidence demonstrates a positive effect on ESG reporting toward Tobin's Q and is robust in some testing, suggesting that ESG information has valuation implications. In addition, ESG Rating provides the greatest contribution to operating performance and market performance as measured using Tobin's Q.
Novelty: This study provides current empirical evidence on the relationship between ESG reporting quality and firm-level financial performance, going beyond conventional metrics such as Tobin's Q to incorporate a wider range of variables. This work explores various measures of ESG reporting, including ESG Score, ESG Rating, and ESG Ranking. Beyond a single metric, this comprehensive analysis of ESG reporting has numerous implications for firm performance. |
| format | Article |
| id | doaj-art-e561115a477e4f35b30b67ec521b2c7c |
| institution | OA Journals |
| issn | 2085-4277 |
| language | English |
| publishDate | 2024-07-01 |
| publisher | Universitas Negeri Semarang |
| record_format | Article |
| series | Jurnal Dinamika Akuntansi |
| spelling | doaj-art-e561115a477e4f35b30b67ec521b2c7c2025-08-20T02:21:19ZengUniversitas Negeri SemarangJurnal Dinamika Akuntansi2085-42772024-07-01161859810.15294/jda.v16i1.16341634The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level PerformanceBadingatus Solikhah0Pei-Yu Weng1Universitas Negeri SemarangNational Yunlin University of Science & TechnologyPurpose: Sustainability reports and integrated information e.g. ESG reports, are utilized by stakeholders for various decision-making processes. Using Taiwan setting, this study examines the effect of ESG reporting quality, including ESG Score, ESG Rating, and ESG Ranking, on financial performance. Method: We employ 6,386 firm-year observations from Taiwanese non-financial listed companies to test the hypotheses. We investigate the relationship between ESG reporting quality and the financial performance of operating and market indicators at the firm level. We analyze ESG reporting components using the same pattern and perform two kinds of robustness checks, include Covid-19 period check and industry effect testing. Result: Empirical evidence demonstrates a positive effect on ESG reporting toward Tobin's Q and is robust in some testing, suggesting that ESG information has valuation implications. In addition, ESG Rating provides the greatest contribution to operating performance and market performance as measured using Tobin's Q. Novelty: This study provides current empirical evidence on the relationship between ESG reporting quality and firm-level financial performance, going beyond conventional metrics such as Tobin's Q to incorporate a wider range of variables. This work explores various measures of ESG reporting, including ESG Score, ESG Rating, and ESG Ranking. Beyond a single metric, this comprehensive analysis of ESG reporting has numerous implications for firm performance.https://journal.unnes.ac.id/journals/jda/article/view/1634esg; esg reporting; firms performance; tobin’s q; sustainability |
| spellingShingle | Badingatus Solikhah Pei-Yu Weng The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level Performance Jurnal Dinamika Akuntansi esg; esg reporting; firms performance; tobin’s q; sustainability |
| title | The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level Performance |
| title_full | The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level Performance |
| title_fullStr | The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level Performance |
| title_full_unstemmed | The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level Performance |
| title_short | The Link Between ESG Reporting Quality and Accounting Measures of Firm-Level Performance |
| title_sort | link between esg reporting quality and accounting measures of firm level performance |
| topic | esg; esg reporting; firms performance; tobin’s q; sustainability |
| url | https://journal.unnes.ac.id/journals/jda/article/view/1634 |
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