Sustainability Reporting, Corporate Reputation, and Firm Performance: Moderating Role of Third-Party Assurance

• Published in: Corporate Reputation Review
• Main Author: Amran A.; Abbasi M.A.; Foroughi B.; Tanggamani V.
• Format: Article
• Language: English
• Published: Springer Nature 2024
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85191246326&doi=10.1057%2fs41299-024-00185-3&partnerID=40&md5=3188ea3c7c4caf842db04757f462307a

The aim of this study is to investigate the influence of sustainability reporting toward corporate reputation and the consequences in terms of financial performance in the sensitive and non-sensitive industry, grounded by the stakeholder theory. In addition, we intent to understand the moderating role of third-party assurance toward Sustainability Reporting and corporate reputation. A sample size of 200 enterprises in Malaysia was chosen using proportionate stratified random sampling to encompass each stratum of sensitive and non-sensitive sectors, and the data were analysed using partial least squares technique. The results confirmed that sustainability reporting has a positive effect on financial performance. However, this association is stronger in non-sensitive industries. Sustainability reporting has a significant impact on corporate reputation. Financial performance also can be predicted by corporate reputation in both sensitive and non-sensitive industries. The results also indicated that third-party assurance positively moderates the relationship between sustainability reporting and corporate reputation in both sensitivity and non-sensitivity industries. The results provided evidence of indirect effects of sustainability reporting on financial performance, mediated by corporate reputation. Current research is among the first attempts to compare the role of sustainability reporting, corporate reputation, third-party assurance, and financial performance in sensitive and non-sensitive industries. © The Author(s), under exclusive licence to Springer Nature Limited 2024.