To Investigate the Relationship between CSR of Companies and Their Market Valuation (Equity Valuation): Northern India

Mittal, Amit; Sandhu, Namrata

doi:10.29070/15/57254

Cited by 3 publications

(4 citation statements)

References 24 publications

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“…The research suggests that investors in Indonesia place a strong emphasis on prioritising sustainable environmental practises. The findings of this investigation are consistent with the conclusions of parallel studies conducted by Budiman and Supatmi (2009), Loh and Tan (2020), and Mittal and Sandhu (2018). Economic growth is a vital factor that determines the rise in the value of firms, as indicated by the growth in market value.…”

Section: Discussionsupporting

confidence: 89%

“…This suggests that, in accordance with the value-enhancing approach, companies that implement and disclose sustainability practises will be more appealing to investors. Mittal and Sandhu (2018) conducted a quantitative study in India and determined that corporations can enhance their valuation by leveraging their corporate social responsibility (CSR) initiatives.…”

Section: Quality Of Sustainability Reportingmentioning

confidence: 99%

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Sustainability Reporting Quality and Corporate Value: Indonesia and Malaysia Context

Utami,

Setiany,

Hidayah

et al. 2024

J. of Law and Sust. Develop.

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Purpose: The aims of this research are twofold: (1) to examine the quality of sustainability reporting among publicly traded firms in Indonesia and Malaysia, and (2) to explore the cause-and-effect link between the quality of sustainability reports and corporate value. Design/methodology/approach: The population consisted of manufacturing enterprises in Indonesia and Malaysia that have issued the Sustainability Report. The sampling was conducted using a random sampling approach and the sample size was determined using the Slovin formula. The assessment of sustainability reporting quality was conducted using certain indicators, namely: (1) adherence to regulations, (2) extent of time horizon disclosures, and (3) level of depth in content disclosure. The assessment of corporate worth was determined by the annual increase in market capitalization. The control variables employed were company size, capital intensity, leverage, and profitability. The data was gathered from the annual report and sustainability report coverage for the years 2018, 2019, and 2020, which were published on the company's website and on the stock market. By employing random sampling and ensuring the availability of all necessary data as per the regression analysis model, we acquired a total of 300 samples of manufacturing firms in Indonesia and 274 samples of manufacturing companies in Malaysia. The evaluation of the Indonesia sustainability report's disclosure pertains to the compliance with Financial Services Authority Regulation Number 51 /POJK.03/2017, which outlines the guidelines for the implementation of sustainable finance. The evaluation of Malaysia's sustainability report disclosure pertains to the Global Reporting Initiative (GRI). The study employed panel data regression analysis to investigate the causal association between the quality of sustainability report and corporate value. Findings: The practices of sustainability disclosure in Indonesia and Malaysia exhibit distinct emphases. Indonesia priorities environmental factors, whilst Malaysia focuses more on social disclosure. Companies in Malaysia have higher levels of disclosure compared to those in Indonesia due to the earlier implementation of the Global Reporting Initiative (GRI). Environmental disclosures and social disclosures in Indonesia have a notable impact on the value of the company, as measured by Tobin's Q. The negative coefficient of social disclosure indicates that investors typically react unfavorably. The act of evacuating the environment has a beneficial effect, which is seen in the appreciation shown by investors. The revelation of corporate governance has a favorable impact on the company's value (Tobin Q) in Malaysia, indicating that investors in Malaysia exhibit significant interest in governance matters. Higher levels of governance result in reduced risk and increased desirability for investors. Research limitations/implications: Some corporations do not release sustainability reports, hence researchers must get data from annual reports. The presentation of sustainability information in the annual report lacks organisation, resulting in frequently inadequate data. Originality/values: The research's originality resides in its full measurement of disclosure and its study of each component of disclosure in the sustainability report.

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Section: Discussionsupporting

confidence: 89%

Section: Quality Of Sustainability Reportingmentioning

confidence: 99%

Sustainability Reporting Quality and Corporate Value: Indonesia and Malaysia Context

Utami,

Setiany,

Hidayah

et al. 2024

J. of Law and Sust. Develop.

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“…This indicates that in line with value-enhancing theory, firms that practice and reporting sustainability dimension will attract more investors. In India, Mittal and Sandhu (2018) conducted quantitative research and concluded that companies could rely on their CSR activities to improve their valuation. Also, Daszynska-Zygadlo et al (2016) assert that there is a value increase attached to CSR activities of firms.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Market value is the current quoted price for market-traded security (Hidayah, 2014). Market value is usually referred to as market capitalisation for quoted companies (Ehrhardt and Brigham, 2011; Mittal and Sandhu, 2018; Shuaibu et al , 2019). It is obtained by multiplying the number of outstanding shares by the current share price.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainability reporting and market value growth of quoted companies in Nigeria

Taiwo

Owowlabi

Adedokun

et al. 2021

JFRA

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Purpose This study aims to examine the effect of sustainability reporting on market value growth (MVG) of quoted companies in Nigeria. The corporate reporting system has evolved, and this study examined how it influences the perception of investors. Design/methodology/approach This study adopted an ex post facto research design with 167 listed firms as the population. A total of 28 quoted firms were chosen with the use of purposive sampling. Data from 2009 to 2018 were obtained from secondary sources. Content analysis was used as a tool to analyse the disclosures in sustainability reports. The model was estimated using pooled ordinary least square (multivariate regression). Company age and financial leverage were used as control variables. Findings This study found that the compliance level of the sampled firms with sustainability reporting requirements for the four dimensions are below average, and sustainability reporting does not have a significant effect on MVG with Prob. (F-stat) of 0.7212 > 0.05. Therefore, this study recommends that management should intensify efforts in ensuring maximum compliance with the sustainability reporting guideline of Global Reporting Initiative to reflect in their market value and ensure its growth. Originality/value To the best of the authors’ knowledge, this study is the original idea of the authors, although references were made to previous related study but it is a unique research work of its own. The work contained in this paper (in full and part) has not been previously submitted to any other journal for publication.

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A Review of Corporate Social Responsibility and Its Relationship with Customer Satisfaction and Corporate Image

Bruce¹,

Priscilla²

2022

OJBM

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To Investigate the Relationship between CSR of Companies and Their Market Valuation (Equity Valuation): Northern India

Cited by 3 publications

References 24 publications

Sustainability Reporting Quality and Corporate Value: Indonesia and Malaysia Context

Sustainability Reporting Quality and Corporate Value: Indonesia and Malaysia Context

Sustainability reporting and market value growth of quoted companies in Nigeria

A Review of Corporate Social Responsibility and Its Relationship with Customer Satisfaction and Corporate Image

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