Research On Impact Of Sustainability Report On Enterprise Value

While pursuing profit maximization,enterprises also need to pay attention to environmental issues and social responsibility commitments.They disclose environmental and social responsibility information through environmental reports and social responsibility reports.However,merely paying attention to the responsibilities of the current enterprises can not completely make the enterprises achieve sustainable development,and environmental reports and social responsibility reports can no longer meet the needs of stakeholders.The format of the sustainability report focuses on the future,including the impact on the economy,the environment and society of the company.It expands its connotation on the basis of social responsibility report,from emphasizing responsibility to taking the initiative to take measures to improve corporate behavior.Sustainability reports can convey information about the company's core competencies,management methods,and potential risks and control measures that can help companies set sustainable development goals,manage their own business practices,and measure sustainability performance.At present,China's research on sustainable development reports is lacking.Most of them focus on the research on index disclosure evaluation and disclosure status.In the real environment,research on sustainable development reports is especially necessary.Based on the above background,this paper analysis of the current status of disclosure of sustainability reports by A-share listed companies first.This paper based on the theory of triple bottom line,stakeholder theory and information asymmetry.Then,through the research on the sustainability report issued by two companies listed in the A-share market of the oil and gas industry,China National Petroleum Corporation and China Petroleum and Chemical Corporation,the internal mechanism of the impact of sustainability reporting on corporate value is revealed.The study found that disclosure of sustainability reports can increase corporate free cash flow,reduce capital costs,and positively impact corporate value.Compared with the disclosure of low-quality sustainability reports,companies that disclose high-quality sustainability reports have seen greater growth in their corporate value.This is because the company's first disclosure of sustainability reports can send a positive signal to the market.High-quality sustainability reports can enhance stakeholder confidence and increase free cash flow,while investors' perception of risk to the company is reduced.The required return on investment is reduced,and the cost of capital of the enterprise is reduced,thereby increasing the value of the enterprise.The innovation of this paper is based on the independent release of sustainability report,and the analysis of the impact mechanism of sustainability report on corporate value through case studies is rare in previous studies.