The Relationship Between the Quality of Sustainability Reporting and Corporate Financial Performance: A Cross-Sectional and Longitudinal Study

Lee, Sze Wing Amy; Rodrigs, Marcus; Nathan, Thurai Murugan; Rashid, Md. Abdur; Mamun, Abdullah Al

doi:10.14453/aabfj.v17i2.04

Cited by 4 publications

(1 citation statement)

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“…The ROS ratio describes the percentage of net profit generated from each sale. A high level of ROS indicates a good level of profitability and can attract investor interest and reflect the company's ability to generate sustainable profits (Lee et al, 2023).…”

Section: Sustainability Report (Sr) Economic Aspects On Financial Per...mentioning

confidence: 99%

Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia

Rahim,

Safitra,

Putra

2023

IJEEP

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This study aims to determine the effect of disclosure of sustainability reports (SR) on economic performance aspects, environmental performance aspects, and social performance aspects of a company's financial performance by using the ratios of return on equity (ROE), return on sales (ROS), and return on assets (ROA). To mining companies listed on the Indonesia Stock Exchange (IDX). This study uses quantitative and secondary data. The data collection technique is to record data on the financial reports of companies listed on the Indonesia Stock Exchange for the 2018–2022 period. The research population consists of mining companies listed on the Indonesia Stock Exchange, using a purposive sampling technique with a sample of 50 companies. They use multiple linear regression methods with the help of SPSS software as an analysis method. The analysis results show that the economic aspect of the sustainability report (SR) variable has a significant effect on the company's financial performance using the return on asset (ROA) ratio. The SR variable in the economic aspect significantly affects financial performance using the return on equity (ROE) ratio. The economic aspect of the SR variable influences and is significant in financial performance using the return on sales (ROS) ratio. The environmental aspect of the SR variable has no effect and is not significant on financial performance using the ratio of return on assets (ROA). The environmental aspect The SR variable significantly influences financial performance using the return on equity ratio (ROE). Variable SR environmental aspects have no effect and are not significant on financial performance using the return on sales (ROS) ratio. The social aspect of the SR variable influences and is significant in financial performance using the ratio of return on assets (ROA). The social aspect (SR) variable has no effect and is not significant on financial performance using the return on equity ratio (ROE). The social aspect of the SR variable significantly influences financial performance using the return on sales (ROS) ratio.

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Section: Sustainability Report (Sr) Economic Aspects On Financial Per...mentioning

confidence: 99%

Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia

Rahim,

Safitra,

Putra

2023

IJEEP

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Analysing impact of corporate attributes on sustainability disclosures through India’s new BRSR framework

Kajal,

Bansal

2024

IJLMA

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Purpose The purpose of this study is to analyse the impact of corporate attributes like a company’s profitability, size, age, leverage and board size on companies’ sustainability reporting as measured through India’s new business responsibility and sustainability reporting (BRSR) framework. Design/methodology/approach A random sample of 130 companies was taken from the top 1,000 listed companies on the National Stock Exchange. Sequential mixed methods research approach was used to prepare a sustainability quality index. Then, a hierarchical multiple regression analysis was performed to examine the impact on the quality of reporting by Indian companies. Findings Interestingly, the analysis revealed that traditional metrics like age, profitability, board size and leverage did not have significant associations with reporting quality. Rather, the size of a company in terms of market capitalisation was found to have a strong positive impact on sustainability reporting. Research limitations/implications This was a cross-sectional study, as time series data for BRSR reporting is not yet available. Also, only five parameters were taken for analysis. Lastly, subjective judgment in content analysis may be involved. Practical implications This suggests that only larger companies in India are prioritising sustainability reporting over smaller ones. It affirms the legitimacy and stakeholder theory in the Indian context. Originality/value To the best of the authors’ knowledge, this study is one of the first endeavours to assess the efficacy of the new Indian BRSR framework and test its primary objectives. Furthermore, significant implications have been given for managers to catalyse and reinforce the sustainability momentum down the lane across companies of all sizes in India.

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Impact of Firm-Specific and Macroeconomic Determinants on Environmental Expenditures: Empirical Evidence from Manufacturing Firms

Bagadeem,

Siddiqui,

Narula

et al. 2024

Economies

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This research aims to examine the association between firm-specific and macroeconomic determinants and environmental expenditures in the Indian manufacturing sector. Furthermore, it seeks to investigate the moderation effect of country-level governance and economic development on the association between macroeconomic, firm-specific, and environmental expenditures. The current study is based on 70 manufacturing firms for the period of 2011 to 2021. The dependent variable is environmental expenditures and the independent variables are firm-specific and microeconomic determinants. The results revealed that market capitalization and firm size have a positive and significant impact on environmental expenditures. On the other hand, inflation and the rule of law negatively and significantly affect environmental expenditures. Regarding the moderation effect, the results revealed that the rule of law and GDP positively moderate the association between inflation and environmental expenditures. Hence, this research has significant implications for corporate executives, financial experts, regulators, and other interested parties.

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The Relationship Between the Quality of Sustainability Reporting and Corporate Financial Performance: A Cross-Sectional and Longitudinal Study

Cited by 4 publications

References 0 publications

Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia

Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia

Analysing impact of corporate attributes on sustainability disclosures through India’s new BRSR framework

Impact of Firm-Specific and Macroeconomic Determinants on Environmental Expenditures: Empirical Evidence from Manufacturing Firms

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