The impact of the publication of non-financial statements on the financial performance of companies with the identification of intersectoral features

Alex Borodin (), Nataliya Shash (), Galina Panaedova (), Svetlana Frumina (), Aidyn Kairbekuly () and Irina Mityushina ()
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Alex Borodin: Plekhanov Russian University of Economics, Russian Federation
Nataliya Shash: Plekhanov Russian University of Economics, Russian Federation
Galina Panaedova: North-Caucasus Federal University, Russian Federation
Svetlana Frumina: Financial University under the Government of the Russian Federation, Russian Federation
Aidyn Kairbekuly: Nazarbayev Intellectual School Semey, Kazakhstan
Irina Mityushina: Belgorod State University, Russian Federation

Entrepreneurship and Sustainability Issues, 2019, vol. 7, issue 2, 1666-1685

Abstract: Investor expectations, rather than fundamentals, are increasingly influencing the value of a company. At a time when non-financial assets are becoming an important component of determining the value of the company, the disclosure of non-financial statements as a source of more extensive and meaningful information than financial statements, is becoming an increasingly popular topic of discussion of the scientific and business communities. Non-financial reporting includes "various types of external reporting provided by organizations to their stakeholders and covering those aspects of the organizations that go beyond the historical framework of financial performance". The information contained in non-financial reports can help investors form an opinion about the intellectual, financial, natural, human and social capital of the company and make a decision about investing. In the developed world, the publication of non-financial statements has become a common norm, while in Russia only a small proportion of companies still issue this type of reporting. The study of publishing non-financial reports dedicated to both theoretical and empirical literature, most empirical studies showed a positive effect of issue of non-financial reporting on the financial stability of companies. However, these studies do not focus on the impact of the publication of non-financial statements on the financial performance of companies in Russia. The purpose of this article is to study the impact of the publication of non-financial statements on the financial performance of Russian companies with the identification of intersectoral features. As a result of this study, it will be possible to understand how the disclosure of non-financial information affects the financial performance of Russian companies. From a practical point of view, this can help managers of companies in various industries to realize the importance or, conversely, the absence of the need to publish non-financial statements as a factor that can increase the credibility of the company in the eyes of investors and positively affect the financial results.

Keywords: non-financial reporting; corporate sustainability; corporate social responsibility; non-financial information; cost of the company; financial statements; profitability of assets; sustainable development (search for similar items in EconPapers)
JEL-codes: G30 G31 (search for similar items in EconPapers)
Date: 2019
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:7:y:2019:i:2:p:1666-1685

DOI: 10.9770/jesi.2019.7.2(61)

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