A Streamline Sustainable Business Performance Reporting Model by an Integrated FinESG Approach

Victoria Bogdan, Luminita Rus (), Dana Simona Gherai, Adrian Gheorghe Florea and Nicoleta Georgeta Bugnar
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Victoria Bogdan: Department of Finance and Accounting, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania
Luminita Rus: Department of Finance and Accounting, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania
Dana Simona Gherai: Department of Finance and Accounting, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania
Adrian Gheorghe Florea: Department of Business Economics, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania
Nicoleta Georgeta Bugnar: Department of International Relations, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania

Sustainability, 2023, vol. 15, issue 24, 1-26

Abstract: ESG reporting and disclosure enable financial performance by attracting revenues and optimizing managerial decisions. Within this landscape falls the present study that aimed to examine the quality of ESG reporting connected to the financial performance of listed companies. Stratified analysis revealed four groups of companies according to the average value of ROA and ROE indicators, as well as four classes according to the average ESG disclosure score. The analysis of GRI topics and materiality disclosure scores showed an average disclosure level on ESG components, located between a satisfactory and a good level of disclosure. Also, companies were found to be more inclined to disclose data on the sustainability strategy but provided poor and vague information on the business model. The results of comparative clustering analysis based on FinESG reporting and disclosure scores showed that 31.57% of companies maintained their position in the final ranking. Content analysis of sustainability reports by Leximancer, v.5.0 software highlighted that the most salient topic was “employees”, and it revealed correlations between the themes “employees” and “emissions”. The practical implications of the study were found in the promotion of an integrated reporting that best meets the needs of both stakeholders and those of environmental protection and the development of society.

Keywords: sustainable business; performance; financial indicators; sustainability reports; ESG (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (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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