ESG Practices and the value relevance of accounting information: an analysis of the agribusiness sector
DOI:
https://doi.org/10.5380/rcc.18.103069Keywords:
Environmental, Social, Governance, Value Relevance of Accounting Information, Agribusi-ness SectorAbstract
The study aimed to analyze the effect of environmental, social, and corporate governance (ESG) practices on the value relevance in firms within the agribusiness sector. This is a descriptive, documentary study with a quantitative approach. The population comprised companies classified by B3 within the agribusiness sector. The sample included firms with available data to calculate the variables used in the value relevance model, yielding 57 companies over the period from 2013 to 2023. The data required to compute the variables were collected from the LSEG database and analyzed using Ordinary Least Squares (OLS) regression models. The findings indicate that ESG practices are positively associated with the value relevance, contributing to the explanation of firms’ market value. The results suggest that responsible engagement with environmental challenges, the generation of social benefits, and the strengthening of corporate governance contribute to the valuation of the agribusiness sector and reinforce the importance of accounting information. Additionally, the presence of firms in the Corporate Sustainability Index (ISE) is also positively associated with the value relevance of accounting information. It is concluded that the adoption of ESG practices and inclusion in sustainability indices enhance the usefulness of accounting information for the market, positively influencing the valuation of companies in the agribusiness sector, as well as the decisions of investors, managers, and the government.
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