Corporate disclosure and investor sentiment - The role of CSR communication, government policies, and audit data analytics

Investor decision-making relies on accurate, timely information, but market efficiency theories and information asymmetry challenge the ability to outperform the market. Disclosure practices, including the emerging importance of ESG information, play a key role in shaping investor sentiment and market dynamics. Digital platforms, especially social media, have transformed how information is disseminated, influencing corporate disclosure practices and investor reactions. Behavioral finance highlights how psychological factors can lead to deviations from fundamental valuations. The COVID-19 pandemic underscored the impact of external shocks on investor sentiment, with government interventions playing a critical role in market responses. Auditing, adapting to include non-financial information like ESG, remains essential in reducing information asymmetry, with modern data-analytic tools like Process Mining offering potential to enhance audit efficiency. This dissertation explores the interplay between financial reporting, news dissemination, auditing practices, and their collective impact on the capital market, highlighting the importance of active corporate communication, government response to crises, and the evolving role of auditing in maintaining market trust.