The effect of sustainability report on value relevance of accounting information: Case study of Thai listed firms

Abstract

The purpose of this study is to test the effect of sustainability report on the value relevance of accounting information. This study’s sample included 617 Thai firms that were listed between 2013 and 2017. The sample consisted of 1,409 firm-year observations, and Ohlson (1995) valuation model was used to determine the value relevance of accounting information. According to the results, the interaction coefficient between the sustainability report and book value per share was positive, while the interaction coefficient between the sustainability report and earning per share was negative. These results suggest that sustainable development information is seen in the interests of investors seeking a long-term return on their investment, and that sustainable development data is used to supplement accounting information in decision-making.