Sustainability Practices Disclosure and Value Relevance: Evidence from Jordan

This study aimed at identifying the level of the sustainability practices disclosure of Jordanian commercial banks listed on the Amman Stock Exchange, as well as explore the value relevance of sustainability practices disclosure and verify its role in shares prices and market returns of Jordanian commercial banks listed on the Amman Stock Exchange. This study proposes to present the diverse instrument's measurement of the variables proposed by the literature. In the Price and Return models, stock prices and stock returns are considered as the dependent variables in order to measure value relevance, while the level of the independent variable is sustainability practices disclosure. Data were collected from the annual reports of the banks included in the study sample during the period from 2008 to 2019. The results indicate that there is a wide gap between Jordanian banks in the level of disclosure of sustainability practices. The results of the valuation analysis revealed that investors positively appreciate the disclosure of the sustainability practices of Jordanian commercial banks listed on the ASE. The results of the analysis revealed that the explanatory power of all models of the study increases significantly when the variable related to the level of disclosure of sustainability practices is included in the model.