To read this content please select one of the options below:

Does GRI compliance moderate the impact of sustainability disclosure on firm value?

Sreepriya J. (School of Management, National Institute of Technology Karnataka, Mangalore, India)
Suprabha K.R. (School of Management, National Institute of Technology Karnataka, Mangalore, India)
Krishna Prasad (T A Pai Management Institute, Manipal Academy of Higher Education, Manipal, India)

Society and Business Review

ISSN: 1746-5680

Article publication date: 5 December 2022

113

Abstract

Purpose

This paper aims to examine the moderating role of global reporting initiative (GRI) compliance in the association between sustainability reporting and firm value.

Design/methodology/approach

This study investigates a sample of 223 manufacturing firms, encompassing 11 industries from 2010 to 2019. Using GRI compliance as a moderator, the authors employed a generalized method of moments model to study how sustainability disclosure impacts firm value.

Findings

The results indicate a positive and significant association between sustainability disclosure and firm value. This study reveals that GRI compliance moderates the relationship between sustainability disclosure and firm value, such that firm value increases when the firm adopts GRI in sustainability reporting.

Originality/value

No prior studies have examined GRI compliance's direct and moderating effects on the association between sustainability disclosures and firm value in the Indian manufacturing sector. This study is also valuable for the managers and industry to understand the significance of implementing voluntary sustainability disclosure practices and being GRI compliant.

Keywords

Citation

J., S., K.R., S. and Prasad, K. (2022), "Does GRI compliance moderate the impact of sustainability disclosure on firm value?", Society and Business Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SBR-06-2022-0172

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited.

Related articles