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Exploring the Relationship between Corporate Governance, Corporate Social Responsibility and Financial and Non-Financial Reporting: A Study of Large Companies in Greece

Author

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  • Foteini I. Pagkalou

    (Department of Economic and Regional Development, Faculty of Sciences of Economy and Public Administration, Panteion University of Social and Political Sciences, 136 Sygrou Ave., 17671 Athens, Greece)

  • Christos L. Galanos

    (Department of Economic and Regional Development, Faculty of Sciences of Economy and Public Administration, Panteion University of Social and Political Sciences, 136 Sygrou Ave., 17671 Athens, Greece)

  • Eleftherios I. Thalassinos

    (Faculty of Maritime and Industrial Studies, University of Piraeus, 185-33 Piraeus, Greece
    Faculty of Economics, Management and Accountancy, University of Malta, 2080 Msida, Malta)

Abstract

Academics and professionals alike are highly interested in Corporate Social Responsibility (CSR), Corporate Governance (CG), environmental, social, and governance (ESG) and corporate non-financial reporting (CNFR) and how they can improve a brand’s reputation, financial efficiency, and sustainability within businesses and organisations. The main objective of our study was to examine whether the financial data of large companies can be correlated with the data in their non-financial reports and provide information on the level of corporate governance and corporate responsibility and to examine the correlation between them. For this purpose, we conducted research by examining the 100 largest companies in Greece, over a period of 3 years, collecting both financial and non-financial data from their official reports. Using appropriate quantitative tools such as similarity, classification and econometric methods (stepwise method and panel least-squares method), the correlations between the data for CSR, CG and non-financial actions and key financial performance ratios are evaluated. Our research has revealed a strong link between financial performance and ESG actions of large companies and, in particular, we demonstrated the positive correlation of CSR performance with their total assets and whether they are listed on the stock exchange, and of CG with CSR and EBITDA. This study adds to the existing academic discourse on the relationship between financial and non-financial information of corporations in the areas of Corporate Responsibility and Governance and provides a valuable way to assess the decisions of businesses.

Suggested Citation

  • Foteini I. Pagkalou & Christos L. Galanos & Eleftherios I. Thalassinos, 2024. "Exploring the Relationship between Corporate Governance, Corporate Social Responsibility and Financial and Non-Financial Reporting: A Study of Large Companies in Greece," JRFM, MDPI, vol. 17(3), pages 1-23, February.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:3:p:97-:d:1344652
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    References listed on IDEAS

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    Cited by:

    1. Foteini I. Pagkalou & Konstantinos I. Liapis & Eleftherios I. Thalassinos, 2024. "Defining the Total CSR Z-Score: A Methodological Approach Using Regulations, Standards and Guidelines Through Application to the Greek Market," Sustainability, MDPI, vol. 16(23), pages 1-28, November.
    2. Tomasz Bartosz Kalinowski, 2024. "Sustainable Business Process Management in the FMCG Sector," European Research Studies Journal, European Research Studies Journal, vol. 0(Special A), pages 313-324.
    3. H M Sifullah & Parvin Akater Shelly & Dr. Mohammad Nazim Uddin & Tanbina Tabassum & Md Ahsan Uddin, 2024. "Does Financial Leverage Impact the Financial Performance of Pharmaceutical Companies in Bangladesh?," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 37-63.
    4. Danuta Dziawgo, 2024. "CSR as Factor Influencing Investment Decisions Made by Individual Investors," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 553-567.
    5. Grzegorz Lew & Norbert Zyczynski & Tadeusz Olejarz & Marta Pomykala, 2024. "The Importance of CSR and ESG in Shaping Competitive and Image Advantage of Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 308-323.
    6. Rafal Cieslik & Jaroslaw Klepacki & Rafal Zbyrowski, 2024. "Exploring the Relationship Between ESG Performance and Institutional Ownership: Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 169-183.

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