Sustainable development disclosure towards firm value through financial strength among enlisted firms in Stock Exchange of Thailand during COVID-19 outbreak

Abstract

This research aims to compare sustainable development disclosure among different industry groups and synthesize Structural Equation Model to declare influence among sustainable development disclosure of economics, social, environment and institute aspects towards fi- nancial strength and firm value via excess return and Tobin’s Q ratio, respectively. Multi- stage sampling approach was applied to 180 enlisted firms in Stock Exchange of Thailand during 2019 to 2021 (total 540 datasets). Structural Equation Model synthesis passed all criteria of fit indices i.e. χ² showed p < 0.01, CFI = 0.97, SRMR = 0.05 and RMSEA = 0.059. According to Structural Equation Model, economics and institute aspects of sustainable development disclosure showed positively significant influence towards both of financial strength and firm value at the 0.05 level. Nevertheless, social aspect of sustainable development disclosure showed negatively significant influence towards both of financial strength and firm value at the 0.05 level. While, environment aspect of sustainable development disclosure exhibited negatively significant influence towards financial strength but positively significant influence towards firm value at the 0.05 level. Ultimately, financial strength provided positively significant influence towards firm value at the 0.05 level.