The Effect of Sustainability Disclosure According to the GRI-G4 Standards on Firm Value

Abstract

The study aimed to investigate the effect of sustainability disclosure according to the GRI-G4 standards on firm value, by following the analytical descriptive approach. The study sample included (33) Jordanian industrial companies listed on the Amman Stock Exchange during the period (2018-2021). The study used the method of content analysis for the annual reports of the sample of industrial companies for collecting data related to the disclosure items for the economic side, the environmental side, and the social side. Also, the firm value was measured by the Tobin’s Q. The study concluded that there is a statistically significant effect of the sustainability disclosure according to the GRI-G4 standards and its dimensions on the firm value. The study recommended that all industrial companies must to sustainability disclose in accordance to the GRI-G4 standards, and adopting activities and practices that contribute to increasing and maximizing the value of the company.