Impact of Sustainability Reporting on Financial Performance
Journal Title: Opportunities and Challenges in Sustainability - Year 2023, Vol 2, Issue 1
Abstract
(1) Purpose: This study aimed to investigate the relationship between Sustainability Reporting (SR) and financial performance and put forward the effect of the SR on financial performance. (2) Methodology: In order to test our hypothesis that financial performance increases the likelihood of firms reporting sustainability, a regression model was built based on the data of firms included in the Borsa Istanbul Stock Market Sustainability Index. Independent variables included in the model are Return on Assets (ROA) and Return on Equity (ROE) values, which are considered as financial performance indicators. Application of sustainable report is a dependent variable of the model. (3) Results: Company size had a positive effect on sustainability activities, while profitability had no significant effect. Large firms were usually more willing to play a role in social and environmental issues and explain their strategies on these issues. (4) Conclusions: It is important for firms to implement sustainability initiatives inside the firms from a strategic point of view, not as a result of pressure from stakeholders, such as official institutions, non-governmental organizations, suppliers or consumers. (5) Implications: With the linear regression estimation performed, the causal relationship between sustainability and financial performance has quantitatively demonstrated the positive effect of sustainability on financial performance. The main purpose of the study is to reveal the importance of publishing a sustainability report for firms and raise their awareness, thus examining the long-term effects of publishing the report. It is suggested that future research may investigate possible differences of sustainability according to the development levels of markets and countries.
Authors and Affiliations
Ismail Erkan Celik
Keywords
Related Articles
- EP ID EP732057
- DOI https://doi.org/10.56578/ocs020103
- Views 54
- Downloads 0
Visibility of Sustainability Certifications in Tourism Enterprises: A Content Analysis of Electronic Platforms in Balıkesir Province
In the contemporary landscape, sustainability emerges as a pivotal indicator of corporate commitment to environmental stewardship. This study aims to elucidate the extent to which tourism enterprises, particularly those...
Bibliometric Analysis of Climate Change Impacts on Global Water Issues (2014-2024)
This study presents a comprehensive analysis of critical bibliometric methods, including trend analysis, correlation analysis, rainfall-runoff modeling, multivariate statistical approaches, and flood frequency analysis,...
Hybrid Energy System Design for Enhanced Sustainability in Rigolet, Newfoundland and Labrador
Amid growing concerns over global climate change and the need for sustainable infrastructure development, remote communities such as Rigolet in Newfoundland and Labrador (NL), which primarily rely on diesel generators, f...
Innovative Development as Determinant of Corporate Economic Security
The current challenges of globalization provide business entities of various economic systems with multifaceted opportunities, while creating new threats to economic security. These and other challenges require enterpris...
Environmental Regulation, Technological Progress and Carbon Emission Efficiency: An Empirical Analysis Based on Panel Data of Chinese Provinces
China faces the key issue of improving the efficiency of carbon emissions, in its endeavor of building a low-carbon economy and reducing carbon emissions. This paper adopts the super-slack-based measure (SBM) model with...