Analysis reveals negative impact of sustainability reporting on financial performance in manufacturing firms, suggesting increased costs imply reduced profits.
The purpose of this study is to investigate the relationship between sustainability reporting and financial performance. This study uses a panel data set from 189 manufacturing companies listed in 2018-2022. The direct effect is tested using multiple regression techniques. The study finds that sustainability reporting has a negative impact on financial performance, as proxied by return on assets. These results indicate that meeting sustainability reporting indicators will increase costs, which means taking a portion of the profits that could be enjoyed by shareholders.
No takes yet. Share an insight, caveat, or question.
Yannifar et al. (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: