Exploring the Influence of Sustainability Reporting on Indian Corporate Financial Performance: A Meta-Analytical Synthesis

Abstract

This research paper delves into the burgeoning field of sustainability reporting and its influence on the financial performance of Indian corporations, a topic of increasing significance in the evolving global business landscape. The primary objective of this study is to examine the extent to which sustainability reporting correlates with the financial performance of Indian companies, and to understand the nature and strength of this relationship. A meta-analytical approach was adopted to synthesize findings from diverse studies, providing a comprehensive overview of existing literature on the subject. This methodology involved rigorous inclusion and exclusion criteria, a systematic search across major academic databases, and the application of statistical techniques to calculate effect sizes and assess heterogeneity. The key findings indicate a positive, albeit modest, correlation between sustainability reporting and financial performance, as evidenced by an overall effect size (r) of 0.11. This outcome points to the importance of integrating sustainability practices into business strategies, not just as a compliance or ethical imperative but as a potential contributor to financial success. The study’s findings vary across different industries, with the banking sector showing a more significant relationship compared to non-financial firms. The implications of this research are multifaceted, influencing corporate strategy, policy formulation, and investment decisions. It underscores the strategic value of sustainability reporting in the Indian corporate sector and highlights its role in shaping a business approach that harmonizes economic prosperity with environmental and social responsibility. This study contributes to the broader understanding of the interplay between sustainability and financial performance, offering valuable insights for businesses, policymakers, and stakeholders in the rapidly evolving Indian corporate landscape.