Examining the Causality between Integrated Reporting and Stock Market Capitalization. The Case of the European Renewable Energy Equipment and Services Industry

Daniela Nicoleta Sahlian (), Adriana Florina Popa, Ștefania Amalia Nicoară and Corina Graziella Bâtcă-Dumitru
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Daniela Nicoleta Sahlian: Department of Accounting and Audit, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Adriana Florina Popa: Department of Accounting and Audit, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Ștefania Amalia Nicoară: Department of Economic and Technical Sciences, Faculty of Economics, Computer Science and Engineering, “Vasile Goldiș” Western University of Arad, 310045 Arad, Romania
Corina Graziella Bâtcă-Dumitru: Department of Accounting and Audit, Bucharest University of Economic Studies, 010374 Bucharest, Romania

Energies, 2023, vol. 16, issue 3, 1-12

Abstract: The International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) of the IFRS Foundation support the integrated reporting of companies’ financial and sustainability performance to stakeholders. This paper aims to investigate whether financial and environmental, social, and corporate governance (ESG) practices have a real impact on the success of the companies in the European renewable energy equipment and services industry. Using the Granger test, the causality between the market capitalization and financial indicators was established, whereas no causality was identified between the market capitalization and ESG performance. The research led to the conclusion that the investment decision is mainly based on the information provided by the financial statements of the companies, the early stages of sustainability reporting regulation, and the need for increasing the quality and availability of corporate social responsibility information for investors.

Keywords: CSR reporting; ESG performance; financial reporting; granger causality; non-financial reporting (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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