The Effect of Sustainability Report Disclosure Level on the Value Relevance of Accounting Information ：Focusing on the Three Characteristics of Quantity, Frequency, and Quality

Abstract

Among the levels of disclosure of sustainability reports, the quantity, cumulative frequency, and quality of disclosures are empirically analyzed for the value relationship of accounting information. Study uses the Ohlson (1995) model. And The number of pages in the sustainability report was used as a quantitative level, the cumulative number of issues after initial issuance was used as a frequency level, and the results of the KRCA evaluation of the Korean Standards Association were used as a qualitative level. The quantity and cumulative frequency of the sustainability report showed a significant positive effect on stock prices over the next year, acting as a determinant of corporate value and being related to the increase in the value of accounting information. Although the excellent quality of the sustainability report did not have an effect on stock prices in the next year, the value of accounting information was confirmed to some extent as the net income per share and excellent quality interaction were strongly significant among the value relevance of accounting information. There is a research methodological contribution in that the level of disclosure through sustainability reports was studied in consideration of all three major characteristics of quantity, frequency, and query disclosure using objective and quantified measurement variables.