Analyzing the Relationship between Non-Financial Sustainability Performance Disclosure and Firm Value Considering the Mediating Role of Corporate Transparency

Document Type : Research Paper

Authors

Department of Accounting, Faculty of Economic and Management, Urmia University, Urmia, Iran.

10.22103/jak.2025.25421.4187

Abstract

Objective: The aim of this study is to comprehensively model the relationship between non-financial sustainability performance disclosure and firm value, considering the mediating role of corporate transparency.
 
Method: This research utilizes an innovative network-based dynamic panel modeling approach applied to a sample of 129 firms listed on the Tehran Stock Exchange during the period from 2014 to 2023. This advanced method enables the simultaneous analysis of complex interrelationships, dynamic temporal effects, cross-sectional dependencies, and the network structure of interactions among variables.
 
Results: The results indicate that non-financial sustainability performance disclosure leads to a significant increase in firm value and improves corporate transparency. Mediation path analysis suggests that corporate transparency transmits a substantial portion of the positive effects of non-financial sustainability performance disclosure on firm value.
 
Conclusion: The findings confirm a positive and significant relationship between corporate transparency and firm value. The effect of non-financial sustainability performance disclosure on firm value occurs through two channels: a direct path and an indirect path, primarily realized through enhanced organizational transparency. These results provide a robust scientific basis for developing strategic corporate reporting frameworks and offer practical guidance for managers to optimize value-creation processes.

Keywords

Main Subjects


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Articles in Press, Accepted Manuscript
Available Online from 20 May 2026
  • Receive Date: 14 June 2025
  • Revise Date: 07 November 2025
  • Accept Date: 15 November 2025