Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging Economy
This study investigates the relationship between sustainability reporting and financial performance in Bangladesh's textile industry, focusing on economic, social, and environmental dimensions. Using a sample of 270 firm-year observations, the study employs pooled OLS regression to analyze the...
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| Format: | Article |
| Language: | English |
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Society for Risk Analysis - China
2024-12-01
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| Series: | Journal of Risk Analysis and Crisis Response (JRACR) |
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| Online Access: | https://doi.org/10.54560/jracr.v14i4.559 |
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| author | Sohag Ahmed Sunny Fatema Ali Apsara |
| author_facet | Sohag Ahmed Sunny Fatema Ali Apsara |
| author_sort | Sohag Ahmed Sunny |
| collection | DOAJ |
| description | This study investigates the relationship between sustainability reporting and financial performance in Bangladesh's textile industry, focusing on economic, social, and environmental dimensions. Using a sample of 270 firm-year observations, the study employs pooled OLS regression to analyze the impact of sustainability reporting on return on assets (ROA) and earnings per share (EPS). The findings reveal that economic and environmental sustainability reporting have significant positive relationships with both financial performance measures, while social sustainability reporting shows no significant impact. Environmental reporting emerges as the strongest predictor of financial performance, suggesting that environmental initiatives create value through multiple channels, including operational efficiency and market recognition. The study contributes to the literature by providing the first empirical evidence from Bangladesh's textile industry, offering insights for policymakers and corporate leaders in emerging economies. While the findings support stakeholder and legitimacy theories, the study's limitations include its focus on a single industry and reliance on secondary data. The research implications suggest that firms should prioritize environmental and economic sustainability reporting while developing more effective approaches to social sustainability practices that can demonstrate clear financial benefits. |
| format | Article |
| id | doaj-art-e590f41328e547f2859b136c71b3ccdd |
| institution | Kabale University |
| issn | 2210-8491 2210-8505 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Society for Risk Analysis - China |
| record_format | Article |
| series | Journal of Risk Analysis and Crisis Response (JRACR) |
| spelling | doaj-art-e590f41328e547f2859b136c71b3ccdd2025-01-03T09:09:24ZengSociety for Risk Analysis - ChinaJournal of Risk Analysis and Crisis Response (JRACR)2210-84912210-85052024-12-01144-5489501https://doi.org/10.54560/jracr.v14i4.559Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging EconomySohag Ahmed Sunny0Fatema Ali Apsara1Department of Accounting & Information Systems, University of Dhaka, Dhaka (1000), Bangladesh; Correspondence: sas.sohagahmed@gmail.comDepartment of Accounting & Information Systems, University of Dhaka, Dhaka (1000), BangladeshThis study investigates the relationship between sustainability reporting and financial performance in Bangladesh's textile industry, focusing on economic, social, and environmental dimensions. Using a sample of 270 firm-year observations, the study employs pooled OLS regression to analyze the impact of sustainability reporting on return on assets (ROA) and earnings per share (EPS). The findings reveal that economic and environmental sustainability reporting have significant positive relationships with both financial performance measures, while social sustainability reporting shows no significant impact. Environmental reporting emerges as the strongest predictor of financial performance, suggesting that environmental initiatives create value through multiple channels, including operational efficiency and market recognition. The study contributes to the literature by providing the first empirical evidence from Bangladesh's textile industry, offering insights for policymakers and corporate leaders in emerging economies. While the findings support stakeholder and legitimacy theories, the study's limitations include its focus on a single industry and reliance on secondary data. The research implications suggest that firms should prioritize environmental and economic sustainability reporting while developing more effective approaches to social sustainability practices that can demonstrate clear financial benefits.https://doi.org/10.54560/jracr.v14i4.559sustainability reportingfinancial performancetextile industryenvironmental disclosureemerging economiesesg reporting |
| spellingShingle | Sohag Ahmed Sunny Fatema Ali Apsara Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging Economy Journal of Risk Analysis and Crisis Response (JRACR) sustainability reporting financial performance textile industry environmental disclosure emerging economies esg reporting |
| title | Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging Economy |
| title_full | Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging Economy |
| title_fullStr | Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging Economy |
| title_full_unstemmed | Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging Economy |
| title_short | Impact of Sustainability Reporting on Financial Performance: Evidence from an Emerging Economy |
| title_sort | impact of sustainability reporting on financial performance evidence from an emerging economy |
| topic | sustainability reporting financial performance textile industry environmental disclosure emerging economies esg reporting |
| url | https://doi.org/10.54560/jracr.v14i4.559 |
| work_keys_str_mv | AT sohagahmedsunny impactofsustainabilityreportingonfinancialperformanceevidencefromanemergingeconomy AT fatemaaliapsara impactofsustainabilityreportingonfinancialperformanceevidencefromanemergingeconomy |