Impact of Non-Financial Information on Sustainable Reporting of Organisations’ Performance: Case Study on the Companies Listed on the Bucharest Stock Exchange

Mariana Man,Maria-Mădălina Bogeanu-Popa

doi:10.3390/su12062179

Mariana Man, Maria-Mădălina Bogeanu-Popa

Open Access

https://doi.org/10.3390/su12062179

Copy DOI

Abstract

The influences resulted from the strategy of sustainable development of a country represents a challenge for both the research and all those interested. This paper researches how the non-financial information is relevant in reflecting the sustainability of Romanian economic entities’ performances. In this context, reference is made to the Bucharest Stock Exchange (BVB) and to the extent that the economic entities listed at the stock exchange draft sustainable reports in compliance with the international reporting requirements. The hypotheses formulated are related to the specific characteristics of the economic entities listed on the BVB. The research was done on a sample consisting of all economic entities contained by the International Reporting System of Issuers (IRIS) platform of the BVB, the sustainable reporting was analysed through the Pearson correlation coefficient and the ANOVA test. Following the research, results were obtained that made it possible to validate/invalidate the hypotheses. One of the specific characteristics that has been noted refers to the size of the economic entity; this has been shown to influence the extent to which the sustainable report drafted complies with the requirements of the international reporting frame.

Highlights

There are many initiatives regarding the sustainability standards in all fields of activity.One of the most widespread reporting models at European level is Global Reporting Initiative (GRI), which introduces a set of standards accepted at global level regarding the sustainable reporting [1].This reporting has been created by the International Council for Integrated Reporting (IIRC), whose main task is to develop the standards and implicitly assist the development of the environment for reporting the sustainability [2].The impact of non-financial information on determining, reporting, and analysing the performance of an economic entity increases the public and political interest on this matter
The goal of this paper aims to establish the relevance of the non-financial information included in the sustainable reports for assessing the performance of economic entities listed on BVB and included on the International Reporting System of Issuers (IRIS) platform
The risen interest in the sustainable reporting of the performance reflects through the non-financial information the economic entities provide

Summary

Introduction

There are many initiatives regarding the sustainability standards in all fields of activity.One of the most widespread reporting models at European level is Global Reporting Initiative (GRI), which introduces a set of standards accepted at global level regarding the sustainable reporting [1].This reporting has been created by the International Council for Integrated Reporting (IIRC), whose main task is to develop the standards and implicitly assist the development of the environment for reporting the sustainability [2].The impact of non-financial information on determining, reporting, and analysing the performance of an economic entity increases the public and political interest on this matter. One of the most widespread reporting models at European level is Global Reporting Initiative (GRI), which introduces a set of standards accepted at global level regarding the sustainable reporting [1]. The non-financial information is governed on the good practices existing in the business environment They maintain the transparency and integrity of reporting entities, being the basic elements at a European level to transpose the sustainable reporting. The level of the non-financial performance is given by three types of reporting: social responsibility, environmental, and personnel responsibility [3] Besides addressing these elements, at the entity level, it is required to present the business model, the entity’s policy, the results of applying the policies, the risks existing in the entity’s activity, and way of action to counteract the risks.

Objectives

Methods

Findings

Conclusion