Do more readable sustainability reports provide more value-relevant information to shareholders?

Minkwan Ahn, Doowon Jung, Jeong-Taek Kim, Woo-Jong Lee and Hee-Yeon Sunwoo

Finance Research Letters, 2023, vol. 57, issue C

Abstract: Whether sustainability reports provide value-relevant information to shareholders is a question of pressing importance to policymakers, regulators, and standard setters. Extending prior studies on information content in sustainability reports, we present evidence that the report form also matters. Using Korean listed firms for the periods 2010 to 2020, we find that more readable sustainability reports tend to provide more firm-specific information in the financial market. Our findings call for structured regulatory guidelines and active engagement of corporate stakeholders for effective delivery in sustainability reporting.

Keywords: Sustainability reports; Report readability; Stock price synchronicity; Firm-specific information (search for similar items in EconPapers)
JEL-codes: G14 G28 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005263

DOI: 10.1016/j.frl.2023.104154

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