Examining the Influence of ESG Reporting on Investment Strategies: The Crucial Role of Accounting Information

Abstract

This study asks many questions about attempts to find the truth about the very deep influence of environmental, social, and governance (ESG) statements on people's investment decisions, with a particular focus on the supportive role of accounting information. Through a mixed-method approach that combines investor surveys and financial report analysis, this research examines the relationships among clear open and honest ESG reporting, accounting quality, and investment attractiveness. The results show a positive relationship between high-quality ESG statements to people and firm performance, indicating that investors value companies in order of importance, clearness, open honesty, and honesty and right responsibility. Furthermore, this study highlights the extremely important function of accounting standards in ensuring the believability and comparability of ESG data across firms, which can improve investor confidence. Recommendations are given to companies to improve their ESG reporting methods, hug advanced ways of doing things, and work together with the ability to keep something around or keep something going experts. Additionally, people or businesses who provide money to help start businesses provide opinions about what could or should be done about a situation to combine different things so that they work as one unit of ESG judging requirements in their decision-making processes, while policymakers are encouraged to establish strong and healthy rules and help increase ESG investing education.