Assessing the Impact of Sustainable Development Disclosure on Enterprise Value through the Financial Strength of Listed Companies in the Agro & Food, Service, and Consumer Products Industries in the Stock Exchange of Thailand during the COVID-19 Pandemic Crisis: A Synthesis of a Structural Equation Model
Keywords:
Sustainable, firm value, financial strengthAbstract
The objective of this research is to study the impact of economic, social, environmental, and institutional sustainability disclosures on enterprise value through financial strength analysis between the Agro & Food Industry, Service Industry, and Consumer Products Industry by using a multi-stage sampling from 77 listed companies on the Stock Exchange of Thailand from 2019 to 2021 (total 231 sets of data). The data were synthesized by a structural equation model. The study results from the structural equation model could be concluded that the disclosure of economic sustainability had a statistically significant positive influence on the financial strength and enterprise value at the 0.01 level; the disclosure of social and institutional sustainability had a statistically significant positive influence on the financial strength and enterprise value at the 0.05 level; the disclosure of environmental sustainability had a positive influence on financial strength at a statistically significant level of 0.05 and a positive influence on enterprise value at a statistically significant level of 0.01; and financial strength had a positive influence on the enterprise value with a statistical significance level of 0.05. This reflects that sustainability disclosure remains extremely important even during the pandemic of coronavirus 2019, The findings of this research continue to support the United Nations Sustainability Goals which provide guidance on when sustainable development information is appropriate disclosure will affect the trend of increasing turnover for the organization.
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