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The value relevance of sustainability reporting: does assurance and the type of assurer matter?

Author

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  • Ephraim Kwashie Thompson
  • Olivier Ashimwe
  • Samuel Buertey
  • So-Yeun Kim

Abstract

Purpose - This paper aims to investigate the relationship between sustainability reporting and firm value, and subsequently, ascertains the moderating effect of assurance and the type of assurer on the sustainability reporting–firm value nexus. Design/methodology/approach - The study is based on sample firms from the Johannesburg Stock Exchange (JSE) in South Africa. The fixed‐effect panel data analysis method is used to estimate the coefficients of the variables. Findings - A significant positive relationship is found between sustainability reporting and firm value. The results also suggest that sustainability assurance has significant explanatory power on firm value. Furthermore, the authors found that the market is unable to distinguish between sustainability assurance services provided by Big 4 audit firms and specialist consultant firms. Practical implications - The authors expect managers will see sustainability reporting and assurance as a business strategy with incremental market value. The study should also serve as a reference for stakeholders engaged in the advocacy for the adoption of sustainability assurance practices on the JSE and other emerging markets. Social implications - The study finds that the South African market rewards firms that purchase third-party assurance to guarantee the integrity of their corporate social responsibility reports. This understanding could help encourage more firms to embrace the concept of sustainability assurance. Originality/value - The study offers a first-hand information on how market participants in Johannesburg, an emerging economy, view sustainability assurance and the services provided by the different assurers.

Suggested Citation

  • Ephraim Kwashie Thompson & Olivier Ashimwe & Samuel Buertey & So-Yeun Kim, 2022. "The value relevance of sustainability reporting: does assurance and the type of assurer matter?," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(4), pages 858-877, February.
    • Handle: RePEc:eme:sampjp:sampj-08-2021-0329
    DOI: 10.1108/SAMPJ-08-2021-0329
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    Citations

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    Cited by:

    1. Ephraim Kwashie Thompson & Samuel Buertey & So‐Yeun Kim, 2026. "How Important Is Corporate Social Responsibility for Corporate Financial Performance?: A Machine Learning Prediction and Model Interpretability Approach," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 35(2), pages 895-913, April.
    2. Rubina Michela Galeotti & Mark Anthony Camilleri & Fabiana Roberto & Fabiana Sepe, 2025. "Stakeholder engagement disclosures in sustainability reports: Evidence from Italian food companies," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 34(1), pages 260-279, January.
    3. Monica Singhania & Gurmani Chadha & Anisha, 2025. "Sustainability accounting research over three decades: A scientometric meta‐analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(2), pages 1698-1734, March.
    4. Ephraim Kwashie Thompson & Samuel Buertey, 2023. "Which firms opt for corporate social responsibility assurance? A machine learning prediction," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 32(2), pages 599-611, April.
    5. Monday Nweke Igwe & Saleh F. A. Khatib & Ayman Hassan Bazhair, 2023. "Sustainability reporting in Africa: A systematic review and agenda for future research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2081-2100, September.
    6. T. G. Saji & A. D. Rajeev Kumar, 2025. "Beyond Earnings: The Synergistic Effects of Financial Quality and Sustainability Disclosures on Market Valuation of Manufacturing Firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(4), pages 4788-4801, July.
    7. Samuel Buertey & Richard Ramsawak & Raymond K. Dziwornu & Yong‐Seok Lee, 2024. "Corporate social responsibility and dividend payout policy in extraordinary time: Empirical study of South Africa," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 514-527, January.
    8. Nejla Ould Daoud Ellili & Cemil Kuzey & Ali Uyar & Abdullah S. Karaman, 2024. "Moderating role of internal factors in corporate social responsibility reporting persistence and corporate market value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2878-2899, July.

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