Innovating ESG Integration as Sustainable Strategy: ESG Transparency and Firm Valuation in the Palm Oil Sector

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

First, I would like to thank the editor for the opportunity to review this paper and congratulate the authors for their research. Overall, the paper is well-written and the language is fluid, especially in the introduction. Nonetheless, there is significant room to improve its readability, for which I am providing some suggestions that I expect to be useful for this purpose, as follows:

1. The introduction could be clearer regarding the main gaps and innovative aspects of this paper. This is despite some references within the methodology to previous research using palm oil entities;

2. Some references are missing from the literature review. I would invite authors to revisit this point and include the necessary support for some statements (for instance, regarding the proposed theories);

3. I think that is missing some background regarding the new standard-setter bodies that have emerged after the recent European-Union Directives on non-financial reporting (sustainability), such as the role played by EFRAG and ISSB (under the aegis of IFRS Foundation);

4. I am not sure if it is really necessary to provide the alternative hypotheses proposed by authors (currently, it is not as usual as before); I would propose authors to be more assertive regarding the expected signs (if there are) of association according to the theories and previous literature. This aspect is also poorly developed sometimes, and I wonder why those theories were previously presented.

5. The methodology, and maybe the results/findings, could improve the link between the hypotheses and the models that intend to answer them; sometimes, the significant volume of information may make it difficult to read the paper from now on;

6. I am not sure why it is relevant (besides the transparency of providing the underlying figures) to provide information for some moderator variables, for instance, since its interpretation/analysis is not relevant;

7.  

Comments on the Quality of English Language

Please see the comments above.

Author Response

Please see attachment.

Author Response File: Author Response.pdf

Reviewer 2 Report

Comments and Suggestions for Authors

The study relies on the Zoological Society of London's Sustainable Development Policy Transparency Toolkit to measure ESG transparency.The reliability and versatility of the tool should be taken into account

Comments on the Quality of English Language

There's no need to adjust it

Author Response

Please see the attachment.

Author Response File: Author Response.pdf

Reviewer 3 Report

Comments and Suggestions for Authors

The paper is a commendable effort to bridge an existing gap in the literature by focusing on the palm oil sector—a subject fraught with environmental, social, and governance issues. It integrates well-established theories like legitimacy, stakeholder, agency, and signalling theories to offer a robust conceptual framework. The paper is particularly strong in its use of SPOTT assessment scores as an industry-specific measure of ESG transparency, thus adding a layer of specificity that is often lacking in cross-industry studies.

Strengths: Comprehensive Literature Review, Methodological Rigour, Stakeholder-Centric, Policy Relevance

Areas for Improvement:

- Temporal Limitations: The paper acknowledges its cross-sectional nature but could benefit from a more detailed discussion on how the dynamics may change over time due to various market events.

- Scope of Companies: Including private and smaller companies could offer a more holistic view. Future research could consider this aspect.

- Implementation vs Transparency: The paper raises an important point that transparency does not equate to effective implementation. However, this could be explored more deeply, perhaps dedicating a section to the nuances between the two.

- Consumer Engagement: While the paper addresses consumer roles in recommendations, integrating consumer behaviour into the main analysis could enrich the paper's findings.

- Financial Indicators: The paper could delve deeper into the implications of using other financial indicators like ROA and ROE for future studies.

 

Author Response

Please see the attachment

Author Response File: Author Response.pdf

Round 2

Reviewer 1 Report

Comments and Suggestions for Authors

Although I would have taken some different options, I globally agree with the authors' responses and propositions.