Abstract
This paper investigates whether corporate sustainability reporting is associated with high firm performance in emerging markets. Using a sample of 24,029 firm-year observations from 14 emerging markets, including China, Egypt, Greece, Hungary, India, Malaysia, Pakistan, the Philippines, Poland, Russia, South Africa, Thailand, Turkey and the United Arab Emirates, we find firms with corporate sustainability reporting is associated with high firm performance. The results are robust even after including the firm-level controls of firm size, leverage, litigation risk, market-to-book ratio, firm age, industry-level control of market competition, and country-level control of the gross domestic product. The findings from this cross-country study provides significant implications for the regulators in promoting sustainability reporting and in assisting investors in making better decisions.
Highlights
Issues on corporate sustainability has become under spotlights in recent years, especially with the emergence of Covid-19 pandemic throughout the world
This paper investigates whether corporate sustainability reporting is associated with high firm performance in emerging markets
Using a sample of 24,029 firm-year observations from 14 emerging markets, including China, Egypt, Greece, Hungary, India, Malaysia, Pakistan, the Philippines, Poland, Russia, South Africa, Thailand, Turkey and the United Arab Emirates, we find firms with corporate sustainability reporting is associated with high firm performance
Summary
Issues on corporate sustainability has become under spotlights in recent years, especially with the emergence of Covid-19 pandemic throughout the world. Melloni et al (2017), suggested that the firm’s financial and sustainability should communicate “concisely” about how a firm’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of sustainable value. The reports complement corporate financial statements as it provides more communication about an organisation’s strategy, nonfinancial performance, governance, prospects, and external environment. It will portray a “complete and balanced” report, i.e., broadly including all material matters, both positive and negative, in a balanced way. In order to investigate whether these claims are true, this study examines the association between sustainable reporting and firms performance
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Academic Research in Business and Social Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
