The Accountability Pathway: Linking ESG Disclosure, Integrated Reporting Quality, and Value Creation in Southeast Asia

ABSTRACT This study examines how listed firms in Southeast Asia translate internal environmental, social, and governance (ESG) commitments into accountable practices, transparent reporting, and organizational value creation. Focusing on firms in the ASEAN‐6 countries over the period 2020–2024, the study proposes and empirically tests a framework in which ESG disclosure enhances integrated reporting quality and, ultimately, value creation, as measured by investment efficiency, while accounting for macro‐level energy transition pressures and firm‐level corporate governance mechanisms. Using panel data from 2605 firms, the study employs maximum likelihood structural equation modeling within a moderated mediation framework, while controlling for country‐level fixed effects. The findings indicate that ESG disclosure significantly enhances integrated reporting quality and that reporting quality serves as a key mechanism through which ESG disclosure contributes to value creation. The results further demonstrate that the accountability pathway is context‐dependent: energy transition pressures strengthen the importance of sustainability accountability, whereas corporate governance influences firms' capacity to implement ESG strategies effectively. This study contributes to the literature by conceptualizing corporate social responsibility as a multistage process that links ESG knowledge, disclosure and reporting infrastructure, and value creation. The findings offer practical implications for managers, investors, and policymakers seeking to enhance corporate transparency and promote sustainable capital allocation across ASEAN economies.