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The Impact of Sustainability Reporting on Company Financial Performance: a Literature Study

Year: 2024

Type: article

Abstract: This study aims to examine the impact of sustainability reporting on corporate financial performance through a Systematic Literature Review (SLR) approach. Amidst the increasing demands for non-financial transparency and accountability, sustainability reporting is considered an important instrument to reflect corporate responsibility towards economic, social, and environmental aspects. The analysis was conducted on 10 selected articles published between 2020 and 2025. The research findings show that the economic dimension in sustainability reporting consistently has a positive and significant effect on financial performance, especially return on assets (ROA) and return on equity (ROE). However, the social and environmental dimensions produce inconsistent effects, even tending to be negative. Factors such as corporate governance efficiency and geographic context also moderate the relationship between sustainability reporting and financial performance. These results confirm that sustainability reporting plays a role as part of a broader corporate strategy, and its effectiveness is greatly influenced by the quality of disclosure and stakeholders' willingness to value non-financial information.

Source: Journal of Information Systems Digitization and Business

DOI: 10.38142/jisdb.v3i3.1429

Authors: Ni Wayan APRIYANI, Ni Putu Angelita Yudia MAHARANI, Ni Komang ASTINI, Ni Made Ari PARTIWI

Institution: Warmadewa University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

OpenAlex ID: W4413235285

FWCI: 0.349

Cites:

Cited by: 1

Related to: 10