Corporate sustainability assurance reports and sustainability index listing: an empirical investigation on institutional investors’ decision making and confidence

Abstract

This paper seeks to examine the association of assurance of Corporate Sustainability Reports and Listing on Sustainability Index (LSI) on institutional investors’ decision making and confidence. This research employed a 2x2 experimental design with a case scenario of a hypothetical company. Two-way ANOVA technique was used to analyse data from 100 participants. Based on the two-way ANOVA analysis, the study only evidences effect of LSI on institutional investors’ decision making and confidence. However, no association was found between assurance of Corporate Sustainability Reports and LSI on institutional investors’ decision making and decision. Further, no significant interaction was found between assurance and LSI on both institutional investors’ decision making and confidence. The findings from this study differ from the findings of similar study in Australia, in that this study highlights the fact that there is still limited awareness in Malaysia in the importance CS reporting and assurance of such reports on investors’ decision making and confidence. Findings from this study have implications for regulatory bodies, government and corporations/organsiations to place more effort in the promotion of CS reporting.