External assurance on sustainability report disclosure and firm value: Evidence from Indonesia and Malaysia

Iman Harymawan, Mohammad Nasih, Atila Salsabilla, Fajar Kristanto Gautama Putra

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)

Abstract

We analyze the content of assurance statements on sustainability reports to examine the extent of external assurance on sustainability report disclosure in Indonesian and Malaysian listed companies and identify their impact on firm value. This research is conducted using 84 samples of listed companies from all industries, except the financial industry, for the period 2010-2016. Ordinary least square (OLS) regression is used to test the research hypothesis. The results show a significant positive effect of external assurance on sustainability report disclosure to a firm value measured by Tobins’Q. Besides, we also found that companies in Indonesia have higher disclosure in terms of external assurance for sustainability reports compared to Malaysia. This study adds new evidence to the literature on sustainability assurance in emerging countries.

Original languageEnglish
Pages (from-to)1500-1512
Number of pages13
JournalEntrepreneurship and Sustainability Issues
Volume7
Issue number3
DOIs
Publication statusPublished - Mar 2020

Keywords

  • Emerging countries
  • External assurance
  • Firm value
  • Sustainability report

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