The Impact of Sustainability Disclosure on Financial Performance: Strategic Communication for Enhancing Transparency in Thai Listed Companies
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This research examines the relationship between sustainability report disclosure and the financial performance listed companies. The study is based on secondary data collected from sustainability reports and financial information of 504 listed companies over the year 2024. All data used are historical and reflect actual disclosures made during that fiscal year. The variables are measured through the level of sustainability disclosure and financial performance, using return on equity (ROE) as a key indicator. Control variables include company size, company age, financial risk, and corporate governance. The analysis is conducted using multiple regression.
The findings indicate that sustainability reporting disclosure does not significantly influence return on equity (ROE) (B = 0.00, p = 0.90). This result contradicts the research hypothesis, which anticipated a positive relationship. One possible explanation may be related to limitations in the dataset, the short time frame of analysis, and characteristics of the Thai capital market. Prior studies have suggested that the benefits of sustainability reporting may be realized over a longer horizon or under conditions of higher investor awareness and regulatory enforcement.
Therefore, while corporate governance, company size, and financial risk were included as control variables, their findings are not central to the research question and are not discussed in depth, as these relationships have been well established in past literature. Additionally, model suitability analysis reveals an F-value of 5.81, which is statistically significant (p < 0.01), indicating that the regression equation is reliable. The model’s Durbin-Watson value of 2.07 falls within the acceptable range, suggesting no issues with autocorrelation of residuals.
The academic contribution of this study lies in highlighting the limited short-term financial effect of sustainability disclosure in the Thai context. It suggests the need for enhancing report quality, regulatory frameworks, and investor awareness to strengthen the role of sustainability reporting. These insights could contribute to the development of capital markets and improve the quality and credibility of sustainability disclosures among listed firms.
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