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The Quality of Sustainability Reports and Corporate Financial Performance: Evidence From Brazilian Listed Companies

SAGE Open, ISSN: 2158-2440, Vol: 7, Issue: 2
2017
  • 52
    Citations
  • 0
    Usage
  • 555
    Captures
  • 4
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    52
    • Citation Indexes
      52
  • Captures
    555
  • Mentions
    4
    • Blog Mentions
      4
      • Blog
        4

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Article Description

Corporate sustainability is essential to long-term corporate success and for ensuring markets deliver value across society, and despite its importance, there is no clear consensus as to whether the financial performance of companies relates to their sustainability performance. The objectives of this study are to verify whether the sustainability reporting quality would affect corporate financial performance (CFP) among the firms listed on Corporate Sustainability Index (ISE) and to examine the quality of information disclosed in their sustainability reports (SR). The sample is composed of all firms listed on ISE for the period 2008 to 2014. This study considered accounting and market-based indicators and control variables. There is no clear consensus as to whether the financial performance of companies listed in sustainability indices relates to their sustainability performance. The main findings are as follows: There is no association between accounting and market-based variables and the reporting quality, and although the quality disclosure is improving throughout the years studied, the scores are still low. This is also true in the three dimensions of sustainability. We are not aware of studies examining the relationship between CFP and sustainability reporting quality, and this is the main contribution.

Bibliographic Details

Hong Yuh Ching; Fábio Gerab; Thiago Henrique Toste

SAGE Publications

Arts and Humanities; Social Sciences

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