Does GRI Compliance Moderate The Impact of GHG Disclosure on Value Relevance? Evidence Asia-Pasific
Sendy Dwi Haryanto and Dian Agustia

1Departement Accounting, Faculty of Economics and Business, Universitas Airlangga, Indonesia
2Departement of Vacational Tax Management, Faculty of Economics and Business, Universitas PGRI Madiun, Indonesia

Abstract

Abstract
Purpose - This paper seeks to examine the role of Global Reporting Initiative (GRI) compliance as a moderator in the relationship between GHG Disclosures of Scope 1, Scope 2, and Scope 3 and their value relevance.
Design/methodology/approach - The study analyzes a sample of 779 manufacturing firms spanning 9 industries from 2018 to 2023. It employs a generalized method of moments model to analyze the moderating influence of GRI compliance on the impact of GHG Disclosures (Scope 1, 2, and 3) on value relevance.
Findings - The study finds a significant positive correlation between GHG Scope 1 and 2 disclosures and value-relevan, demonstrating that GRI compliance fully moderates the GHG Disclosure-value relevance relationship, particularly enhancing value relevance when firms implement GRI standards for Scope 1 and Scope 2 disclosures.
Originality/value - This research is pioneering in assessing both the direct and moderating roles of GRI compliance in the relationship between GHG Disclosures of Scopes 1, 2, and 3 and value relevance within the Asian-Pacific context. It provides valuable insights for managers and industry stakeholders about the benefits of voluntary greenhouse gas disclosure practices and GRI adherence.
Paper type Research Paper

Keywords: GRI Compliance- GHG Disclosure- Scope 1- Scope 2- Scope 3- Value Relavance

Topic: Sustainability accounting