Abstract:

This study aims to analyse the role of assurance service for sustainability reporting in increasing the market performance of sustainability practices disclosed in the sustainability reporting. This research covers public listed companies from Top 5 ASEAN countries which are Indonesia, Malaysia, Singapore, Philippines and Thailand engaged in the non-financial sector and listed on the capital markets of each country in 2016. This study refers to GRI standard in measuring sustainability practices disclosed in the sustainability reporting. To test whether the assurance service increases the market performance effect of sustainability reporting this study identify whether the company use independent assurance for their sustainability reporting. Market performance is measured by using Tobin’s Q and MBV. The results of this study show that the company's sustainability practices have a significant positive effect on market performance of the company. Furthermore, the study also shows that the company's decision to use assurance services in its sustainability practices has no effect on the relationship between sustainability reporting and market performance. This result implies that market perceived that the quality of sustainability reporting between report that being assured by the independent assuror is the same with sustainability reporting that is not being assured by independent assuror.