Sustainability Reporting and Firm Performance in Developing Climes: A Review of Literature
Copernican Journal of Finance & Accounting, 9(1), 9–29. http://dx.doi.org/10.12775/CJFA.2020.001
21 Pages Posted: 14 Sep 2020
Date Written: August 1, 2020
The study basically examined the impact of sustainability reporting on firm performance in developing climes. A systematic content analysis approach was adopted in the study and it formed the basis for the researcher’s conclusion and recommendations. The findings of reviewed extant literature showed that there were inconclusive findings on the impact of sustainability reporting on firm performance. However, a large number of works submitted a positive relationship between sustainability reporting and firms’ performance. Secondly, financial performance measures often used by researchers include the profitability measures (ROA and ROE) and market-based measure (EPS and DPS), and the fourth version of the Global Reporting Initiative (GRI) framework in calculating sustainability disclosure index via content analysis. Thirdly, we also found that sustainability disclosure level was low in developing climes compared to other developed climes. We observed some methodological flaws in the extant literature on the sector investigated and sample size employed. This study, therefore, recommended that further studies should be carried out on the impact of sustainability reporting on firms’ performance based on the suggested methodological improvement.
Keywords: GRI, economic reporting, social reporting, environmental reporting, deve-loping climes
JEL Classification: M41, K32
Suggested Citation: Suggested Citation