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

IF 1.6 Q3 BUSINESS, FINANCE

Australasian Accounting Business and Finance Journal Pub Date : 2023-01-01 DOI:10.14453/aabfj.v17i2.04

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

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Abstract

PurposeThe purpose of this paper is to examine the relationship between the quality of sustainability reports (QSR) and corporate financial performance (CFP). Since the global reporting initiative (GRI) reporting guideline is widely adopted by organizations over the world, the reporting organizations that report their corporate social responsibility (CSR) information under GRI reporting guidelines. Design/methodology/approach-In this study total of 6,519 samples are obtained from the GRI report list in the reporting period from the year 2009 to 2013 for analysis. Findings-The results demonstrate higher QSR results in better profitability and CFP but QSR exceeding a certain level in return increase the utilization of the firm’s resources and this leads to a decrease in overall profitability. Besides, the study proved that continuing investment in sustainability reporting and the decrease in a firm’s profitability affect the overall profitability – Returns on asset (ROA) and Returns on sales (ROS) of the organization. Originality/value-Provides the empirical study on the relationship between QSR and CFP based on the GRI report list in the reporting period from 2009 to 2013. JEL: M41, Q01, Q56

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可持续发展报告质量与公司财务绩效的关系:横断面与纵向研究

本文的目的是研究可持续发展报告质量(QSR)与企业财务绩效(CFP)之间的关系。由于全球报告倡议组织(GRI)报告指南被世界各地的组织广泛采用，报告组织根据GRI报告指南报告其企业社会责任(CSR)信息。设计/方法/方法在本研究中，从2009年至2013年报告期的GRI报告列表中获得6519个样本进行分析。研究发现-结果表明，更高的质量sr会带来更好的盈利能力和财务绩效，但超过一定水平的质量sr会增加公司资源的利用率，从而导致整体盈利能力下降。此外，研究证明持续投资于可持续发展报告和企业盈利能力的下降会影响组织的整体盈利能力-资产收益率(ROA)和销售收益率(ROS)。原创性/价值——基于2009 - 2013年报告期GRI报告清单，对质量sr与财务绩效之间的关系进行实证研究。Jel: m41, q01, q56

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来源期刊

Australasian Accounting Business and Finance Journal BUSINESS, FINANCE-

CiteScore

3.90

自引率

15.80%

发文量

审稿时长

24 weeks

期刊介绍： The Australasian Accounting, Business and Finance Journal is a double blind peer reviewed academic journal. The main focus of our journal is to encourage research from areas of social and environmental critique, exploration and innovation as well as from more traditional areas of accounting, finance, financial planning and banking research. There are no fees or charges associated with submitting to or publishing in this journal.