The relationship between sustainability reporting and financial performance under a meta-analysis
Year: 2025
Type: review
Study designs: Systematic Review, Meta-Analysis
Abstract: The relationship between sustainability reporting (SR) and corporate financial performance (CFP) has been a longstanding and debated topic in academic research (Orlitzky et al., 2003). However, past empirical studies have yielded varying results. This study aims to systematically and quantitatively assess the link between SR and CFP through a meta-analysis (MA) approach. Using 115 effect sizes from 30 studies, the analysis indicates a positive and significant overall relationship between SR and CFP, reinforcing the idea that SR contributes to improved financial performance. Additionally, the study explores the causal connection between SR and CFP, supporting various related theories. The MA also reveals that different measurement methods for SR and CFP account for some of the variability in the corporate social responsibility (CSR)-CFP relationship. Lastly, the research examines how the environmental context influences the SR-CFP link, finding that the relationship is stronger for firms in developing economies compared to those in developed economies
DOI: 10.22495/cgsrv9i1p4
Authors: Thi Thanh Loan Nguyen, Ngoc Hung Dang, Manh Dung Tran, Van Linh Nguyen
Institutions: Hanoi University of Industry, National Economics University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4407761484