Moderating Role of Sustainability Reporting on the Relationship Between Social Performance and Firm Value in BRICS Countries

May Abdulaziz Alamoudi ()
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May Abdulaziz Alamoudi: Department of Accounting, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia

Sustainability, 2025, vol. 17, issue 20, 1-19

Abstract: This study investigates the interconnections among sustainability reporting, social performance, and firm value across the BRICS nations (Brazil, Russia, India, China, and South Africa). Employing a quantitative research design, the study utilizes firm-level data from the Refinitiv database, covering 862 firms operating in the BRICS countries from 2017 to 2022. The analysis begins with Ordinary Least Squares (OLS) regression and extends to models incorporating year-fixed effects and firm-fixed effects to account for heterogeneity and omitted variable bias. Robustness checks are conducted using OLS regression with robust standard errors, fixed effects regression with Driscoll–Kraay standard errors, and an instrumental variable approach to address potential endogeneity concerns. To examine the moderating role of sustainability reporting, interaction terms are incorporated into the regression models and margin plots are used for visualization. The findings reveal that social performance positively impacts firm value, underscoring the role of social responsibility in driving financial performance. Furthermore, sustainability reporting strengthens this relationship, indicating that firms with well-established reporting frameworks can effectively leverage social initiatives to enhance market valuation. Therefore, this study contributes to the literature by providing empirical evidence on the moderating effect of sustainability reporting in emerging markets. The findings offer valuable implications for policymakers, investors, and corporate leaders seeking to optimize CSR strategies and enhance firm value in dynamic economic environments.

Keywords: social performance; sustainability reporting; firms value; BRICS countries (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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