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Resource-based view on corporate sustainable financial reporting and firm performance: evidences from emerging Indian economy

Author

Listed:
  • Dipasha Sharma
  • Sonali Bhattacharya
  • Shagun Thukral

Abstract

The purpose of the study is to find the impact of environmental, social and governance (ESG) disclosure on financial performance of firms in an emerging economy, India, using resource-based view. The financial performance of the firms was taken as the predicted variable. ESG disclosure scores showed negative association with the measures of firm performance, with relationship being moderately significant with return on assets. Environmental disclosure score was found to have significant inverse relationship with measures of both accounting performance (ROA) and marketing performance (Tobin's Q). Social performance disclosure has significant positive impact on firms' financial performance. Size of the firm has moderating role to play in determining the impact of social disclosure score on financial performance. Larger firms were found to be displaying higher capability to convert their social performance into competitive advantage. Firms in the sectors of healthcare and energy sectors have significant competitive advantage with higher environmental performance.

Suggested Citation

  • Dipasha Sharma & Sonali Bhattacharya & Shagun Thukral, 2019. "Resource-based view on corporate sustainable financial reporting and firm performance: evidences from emerging Indian economy," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 13(4), pages 323-344.
    • Handle: RePEc:ids:ijbget:v:13:y:2019:i:4:p:323-344
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    Citations

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    Cited by:

    1. Veeravel, V & Murugesan, Vijaya Prabhagar & Narayanamurthy, Vijayakumar, 2024. "Does ESG disclosure really influence the firm performance? Evidence from India," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 193-202.
    2. Abhishek Behl & P. S. Raghu Kumari & Harnesh Makhija & Dipasha Sharma, 2022. "Exploring the relationship of ESG score and firm value using cross-lagged panel analyses: case of the Indian energy sector," Annals of Operations Research, Springer, vol. 313(1), pages 231-256, June.
    3. Helen LaVan & Lori S. Cook & Ivana Zilic, 2021. "An analysis of the ethical frameworks and financial outcomes of corporate social responsibility and business press reporting of US pharmaceutical companies," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 15(3), pages 326-355.
    4. Rabi Narayan Kar & Amanpreet Kaur, 2023. "Do Disclosures Drive Socially Responsible Investing?," Paradigm, , vol. 27(1), pages 7-26, June.
    5. Doshi, Medha & Jain, Riidhi & Sharma, Dipasha & Mukherjee, Deepraj & Kumar, Satish, 2024. "Does ownership influence ESG disclosure scores?," Research in International Business and Finance, Elsevier, vol. 67(PA).
    6. Tze Kiat Lui & Mohd Haniff Zainuldin, 2022. "Do foreign banks disclose corporate social responsibility practices more than their local counterparts? Empirical evidence of an emerging market context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1855-1870, September.

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