Abstract
This study investigates the impact of sustainability reporting on the solvency positions of selected Indian companies. For this analysing eleven years of data from ten firms, the research assesses whether comprehensive sustainability disclosures correlate with improved solvency indicators, measured by debt-equity ratios. The findings indicate that companies like Infosys and ITC consistently improved their sustainability scores while maintaining low debt-equity ratios, reflecting strong financial health. Conversely, firms such as Tech Mahindra and JSW displayed greater variability in both sustainability scores and financial leverage. Regression analysis reveals a marginally significant negative relationship between sustainability scores and debt-equity ratios, though the model explains only a small portion of the variance, suggesting the influence of other unobserved factors. These results highlight the importance of sustainability reporting for corporate accountability and stakeholder trust, while also suggesting that its direct impact on financial solvency is influenced by broader financial and industry-specific conditions.
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