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Sustainability Reporting And Firm Performance In Developing Climes: A Review Of Literature

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  • Hope Osayantin Aifuwa

    (University of Benin, Nigeria)

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-base 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 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.

Suggested Citation

  • Hope Osayantin Aifuwa, 2020. "Sustainability Reporting And Firm Performance In Developing Climes: A Review Of Literature," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(1), pages 9-29.
    • Handle: RePEc:cpn:umkcjf:v:9:y:2020:i:1:p:9-29
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    References listed on IDEAS

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    1. Rongjiang Cai & Tao Lv & Cheng Wang & Nana Liu, 2023. "Can Environmental Information Disclosure Enhance Firm Value?—An Analysis Based on Textual Characteristics of Annual Reports," IJERPH, MDPI, vol. 20(5), pages 1-21, February.
    2. Ruba Khalid Shira, 2024. "The Impact of Political Involvement on Firms’ Financial Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 14(3), pages 33-39, May.
    3. Yulianingtias & Wiwik Utami, 2024. "The Impact of Sustainability Reporting Disclosure and Intellectual Capital on Financial Performance with Efficiency as a Moderating Variable: An Empirical Study of Indonesian Banks (2019-2021) after C," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 184-194, November.
    4. Syamsuri Rahim & Hasriani Safitra & Aditya Halim Perdana Kusuma Putra, 2024. "Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 673-685, January.
    5. Saidu Musa & Nusirat Ojuolape Gold & Hope Osayantin Aifuwa, 2020. "Board Diversity and Sustainability Reporting: Evidence from Industrial Goods Firms," Business & Management Compass, University of Economics Varna, issue 4, pages 377-398.

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