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

See all articles by Hope Osayantin Aifuwa

Hope Osayantin Aifuwa

Department of Accounting, Faculty of Management Sciences, University of Benin, Benin City

Date Written: August 1, 2020

Abstract

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

Aifuwa, Hope Osayantin, Sustainability Reporting and Firm Performance in Developing Climes: A Review of Literature (August 1, 2020). Copernican Journal of Finance & Accounting, 9(1), 9–29. http://dx.doi.org/10.12775/CJFA.2020.001, Available at SSRN: https://ssrn.com/abstract=3665238

Hope Osayantin Aifuwa (Contact Author)

Department of Accounting, Faculty of Management Sciences, University of Benin, Benin City ( email )

Edo State, Nigeria
Benin, CA
Nigeria
+2348113232082 (Phone)

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