The impact of sustainability reporting on investors' feelings and attention, with emphasis on business strategy

Document Type : Original Article

Authors

1 Department of Accounting, Ahar Branch, Islamic Azad University, Ahar, Iran.

2 Department of Accounting, Varzaghan Branch, Islamic Azad University, Varzaghan, Iran.

Abstract
Purpose: Investors' feelings and emotions, as well as their attention, are vital to financial markets and can change their fate and affect market trends. One of the most important factors affecting investors' feelings and attention is sustainability reporting. The present study examines the impact of sustainability reporting on investors' feelings and attention, with emphasis on business strategy.
Methodology: This research is practical in purpose and methodology; the correlation is of the causal type (after-event). In systematic elimination sampling, 151 companies were selected as the sample and investigated over the 6 years from 2018 to 2023. The method used to collect information is a library, and data are collected to measure variables from the codal website and corporate financial statements. In Excel, basic calculations were made, and then, to test the hypotheses, Stata was used.
Findings: The research shows that sustainability reporting has a direct impact on investor sentiment. Also, sustainability reporting directly affects investor attention. However, business strategy does not affect the relationship between sustainability reporting and investor sentiment. Also, business strategy does not affect the relationship between sustainability reporting and investor attention.
Originality/Value: By providing comprehensive information beyond financial factors in sustainability reporting, this type of reporting has gained great importance and become a key consideration for investors and stakeholders, potentially affecting their attention and emotions.

Keywords

Subjects


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