Does Sustainable Development Goals Disclosure Affect Corporate Financial Performance?

Hidaya Al Lawati and Khaled Hussainey ()
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Hidaya Al Lawati: College of Economics and Political Science, Sultan Qaboos University, P.O. Box 50, Muscat 123, Oman

Sustainability, 2022, vol. 14, issue 13, 1-14

Abstract: This study provides empirical examination of Sustainable Development Goals (SDGs) reporting in Oman. It also examines the impact of SDGs reporting on corporate financial performance. The study adopts content analysis of the narrative sections of the annual reports to measure levels of SDGs reporting. The study examines all financial companies listed on the Muscat Stock Exchange over the period of 2016–2020. Regression models are used to examine the impact of SDGs on corporate financial performance. Our analysis adds to the literature in two crucial respects. First, we provide evidence that financial institutions in Oman have performed poorly in SDGs reporting. Second, we provide evidence that SDGs reporting positively affects corporate financial performance. Our findings offer solid practical implications to regulators, different stakeholders, policymakers, board members, and managers. The study makes an important and novel contribution to corporate disclosure literature. So far as we know, it is the only paper to examine levels of SDGs reporting in financial institutions in a developing country. Moreover, to the best of our knowledge, it is the first paper to show that SDGs reporting is positively associated with corporate financial performance.

Keywords: Sustainable Development Goals (SDGs); financial performance; Oman; business environment; legislation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:13:p:7815-:d:848943

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