Sustainability reporting and its influence on investor decision making: Critical perspectives and empirical insights

This paper explores the critical role of sustainability reporting in shaping investor decision-making by examining both theoretical perspectives and empirical evidence. It aims to elucidate how transparent and comprehensive sustainability disclosures influence investors’ assessments of corporate value, risk, and long-term performance. The study highlights the growing importance of standardized ESG metrics and integrated reporting frameworks in facilitating informed investment choices. Ultimately, it underscores the need for enhanced alignment between corporate reporting practices and investor expectations to promote sustainable capital allocation.