Institutional Determinants of IFRS S1 Disclosure: Political Stability and Economic Growth in ASEAN

Abstract

This study aims to examine the influence of political stability and economic growth on IFRS S1 based sustainability disclosure in ASEAN emerging markets. This study employs a quantitative approach with a sample of 127 publicly listed companies with strong ESG performance in Indonesia, Malaysia, and Thailand. Using a cross-sectional design, the analysis is based on 2024 reporting data which represents the pre-implementation of IFRS S1. Data are analyzed using Ordinary Least Squares (OLS) regression. A robustness test using cluster robust regression is also employed to ensure validity and stability baseline models. The results indicate that political stability has a positive and significant effect on IFRS S1 disclosure. In contrast, economic growth exhibits a significant negative effect on IFRS S1 disclosure. These findings suggest that political stability plays a more dominant role than economic growth in shaping sustainability disclosure practices during the pre-implementation of IFRS S1. This study contributes to the development of institutional theory in the context of global sustainability reporting standards and provides practical implications for regulators and firms in strengthening governance and institutional capacity to enhance the effectiveness of IFRS S1 implementation.

Keywords: IFRS S1; Political Stability; Economic Growth; Sustainability