The Impact of Changes and Ranking Discrepancies in Sustainability Reporting on Stock Returns

Iranian Journal of Accounting, Auditing and Finance

مقاله 7، دوره 10، شماره 1 - شماره پیاپی 34، بهار 2026، صفحه 151-166   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2026.46937.1534

نویسندگان

Narges Azimi Ashtiani¹؛ Somayeh Sadeqian¹؛ Khadijeh Khodabakhshi Parijan^{* 2}

¹Department of Humanities, West Tehran Branch, Islamic Azad University, Tehran, Iran

²Department of humanities, west tehran branch, islamic azad university, tehran, iran

چکیده

Sustainable investing has been a hot topic among lawmakers, academics, and investors as of late. Here, the goal of both academic research and sustainable investment methods is to compare how well various companies report on sustainability. Despite the attention on sustainability reporting, empirical research is still needed on the relationships among sustainability report errors, stock returns, and the timing of such reports. To analyze the impact of variations and ranking inconsistencies in sustainability reporting on stock returns, this study was conducted. Consequently, 130 Tehran Stock Exchange companies from 2015 to 2022 were analyzed using multivariate modeling and Eviews 9. The ESG, CSP, and CSR indices showed that sustainability reporting significantly impacted stock returns. Furthermore, these three sustainability reporting indices had a comparatively greater influence on prospective stock returns. Additionally, the three sustainability reporting indices had a considerable impact on the stock performance of the following stocks. Both present and future stock returns were adversely affected by inconsistencies in sustainability reporting rankings derived from different sustainability reports. Sustainability reporting, along with changes and inconsistencies in rankings, should be taken seriously by investors and market participants. Moreover, this study could help reduce investor uncertainty about sustainability reporting and encourage sustainable investment by focusing on differences and changes in sustainability reporting rankings across several approaches and years, and on their effects on stock returns. This study also examined how sustainability reporting rankings affect future stock returns. This study identifies discrepancies across various sustainability reporting rankings and examines how they affect stock returns and future performance. This study also contributes to the literature on sustainability reporting in Iran. By emphasizing differences and variations in sustainability reporting rankings across methods and years, and their impact on stock returns, this research aims to reduce investor confusion about sustainability reporting and promote sustainable investment. Moreover, this study focuses on the impact of changes in sustainability reporting rankings on future stock returns.

کلیدواژه‌ها

Ranking Discrepancies؛ Sustainability Reporting؛ Stock Returns

مراجع