Impact of Sustainability Reporting on Firm Performance of Companies in India

2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Priyanka Garg
Keyword(s):  
Environmental Sustainability ◽  
Rural Livelihoods ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Marginal Lands ◽  
Great Ability ◽  
Reporting Practices ◽  
Long Run ◽  
Short Run ◽  
Core Idea

The core idea of sustainability is that current decisions should not impair the prospects for maintaining or improving future living standards (Repetto, 1986). GRI (2006) defined sustainability as meeting the needs of the present without compromising the ability of future generations to meet their needs. The challenges of sustainable development are many and it is widely accepted that organizations have not only a responsibility but also a great ability to exert positive change on the state of the worlds economy, and environmental and social conditions. Further, the issue of environmental sustainability is intertwined with that of poverty and inequity. The causative relationship runs both ways- increased poverty and loss of rural livelihoods accelerates environmental degradation as displaced people put greater pressure on forests, fisheries, and marginal lands. The present study has made an attempt to investigate the relationship between sustainability reporting and financial performance of companies in India. Data have been collected with the help of annual reports of selected companies and Prowess Database. Collected data have been analyzed with the help of SPSS 16.0. The study shows that sustainability reporting practices of companies has improved over the time. Further, research reveals that sustainability reporting practices of a firm impact its performance negatively in short run while positively in long run.

How do public companies respond to national challenges through sustainability reporting? – The case of Sri Lanka

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake ◽  
Carol A. Tilt ◽  
Wei Qian
Keyword(s):  
Sri Lanka ◽  
Developing Country ◽  
National Level ◽  
National Development ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Structured Interviews ◽  
Content Type ◽  
Integrative Social Contracts Theory ◽  
Reporting Practices

Purpose The purpose of this paper is to explore how sustainability reporting is shaped by the global influences and particular national context where businesses operate. Design/methodology/approach The paper uses both content analysis of published sustainability information and semi-structured interviews with corporate managers to explore how sustainability reporting is used to address unique social and environmental challenges in a developing country – Sri Lanka. The use of integrative social contracts theory in investigating sustainability reporting offers novel insights into understanding the drivers for sustainability reporting practices in this particular country. Findings The findings reveal that managers’ perceptions about usefulness of sustainability reporting, local contextual challenges and global norms influence the extent to which companies engage in sustainability reporting and the nature of sustainability information reported. In particular, Sri Lankan company managers strive to undertake sustainability projects that are beneficial not only to their companies but also to the development of the country. However, while company managers in Sri Lanka are keen to undertake sustainability reporting, they face different tensions/expectations between global expectations and local contextual factors when undertaking sustainability projects and reporting. This is also showcased in what is ultimately reported in company annual reports, where some aspects of sustainability, e.g. social, tend to focus more on addressing local concerns whereas other disclosures are on issues that may be relevant across many contexts. Research limitations/implications Important insights for government and other regulatory authorities can be drawn from the findings of this study. By capitalising on the strong sense of moral duty felt by company managers, policymakers can involve the business sector more to mitigate the social and environmental issues prevalent in Sri Lanka. The findings can also be used by other developing countries to enable pathways to engage with the corporate sector to contribute to national development agendas through their sustainability initiatives and projects. Originality/value While the usual understanding of developing country’s company managers is that they try to follow global trends, in Sri Lanka, this research shows how managers are trying to align their responsibilities at a national level with global principles regarding sustainability reporting. Therefore, this paper highlights how both hypernorms and microsocial rules can interact to define how company managers undertake sustainability reporting in a developing country.

scholarly journals Role of Information and Communication Technology, Foreign Direct Investment and Trade Openness in Environmental Sustainability

2021 ◽  
Vol 7 (2) ◽  
pp. 263-272
Author(s):  
Sulaman Hafeez Siddiqui ◽  
Sohail Saeed ◽  
Areeba Khan ◽  
Hina Bhatti
Keyword(s):  
Co2 Emissions ◽  
Information And Communication Technologies ◽  
Environmental Sustainability ◽  
Trade Openness ◽  
Communication Technologies ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Information And Communication ◽  
The Government

Purpose: The benefits of Information and Communication Technologies (ICTs) in environmental resource management has been a topic of hot discussion for the policymakers across the world.  For the purpose, the government of Pakistan took initiative in 2018 to use technology for the country’s social welfare, financial benefits and to enhance environmental sustainability and named it as “Digital Pakistan Initiative”.Design/Methodology/Approach: For analysis, this study took CO2 emissions as the dependent variable and ICT, FDI inflows, and Trade Openness as independent variables. Data were collected on bimonthly basis from 2004 through 2019, and analyzed employing ARDL approach. Main purpose of the study was to examine the short-run and long-run relationship among carbon emissions and ICT, FDI Inflows and Trade Openness.Findings: The findings show that there exists a short-run relationship among all the variables; however, FDI inflows and trade openness have a significant relationship with CO2 emissions. The results also exhibit that there is no long-run relationship between CO2 emissions, FDI inflows, and Trade openness while ICT has an insignificant long-run relationship with CO2 emissions. With the increase of information and communication, the country’s environmental sustainability is also increased. Implications/Originality/Value: The current study was based on least considered variables and the pioneer in testing the complex relationship through VAR estimation.

INTELLECTUAL CAPITAL REPORTING STUDY OF IT-SECTOR CORPORATIONS IN INDIA

2011 ◽  
Vol 01 (01) ◽  
pp. 16-28
Author(s):  
Madan Lal Bhasin
Keyword(s):  
Intellectual Capital ◽  
Annual Reports ◽  
Voluntary Reporting ◽  
Reporting Practices ◽  
External Stakeholder ◽  
Long Run ◽  
Wealth Generation ◽  
Voluntary Basis

Intellectual capital (IC) can prove to be a source of competitive advantage for businesses ultimately leading to wealth generation in the long-term. At present, reporting of IC information is done by very few leading corporations purely on a “voluntary” basis. Unfortunately, the omission of IC information may adversely influence the quality of decisions made by shareholders, or lead to material misstatements. India presents an ideal case for the analysis of IC reporting by the IT corporations because the economy has been undergoing rapid transformation.This study attempts to provide an insight into the style of IC reporting done by the top IT-sector corporations in India. In order to survey the recent IC reporting practices, we conducted a study of 16 IT corporations in which “content analysis” was performed on their 2007 to 2009 annual reports. The results of this study confirmed that IC reporting in these corporations is almost negligible, and IC reporting had not received any preference from the mentors of these corporations. A major recommendation for corporations is to develop strategic and tactical initiatives that provide for ‘voluntary’ reporting of IC. These initiatives may initially be used for internal management purposes, but an external stakeholder-focus IC report should be the ultimate long-run goal.

Asset Quality and Deposit Money Banks Performance in Nigeria

2019 ◽  
Vol 1 (1) ◽  
pp. 38-47
Author(s):  
Mbatabbey Joy Ogboru
Keyword(s):  
Time Series ◽  
Financial Stability ◽  
Deposit Insurance ◽  
Time Series Data ◽  
Annual Reports ◽  
Series Data ◽  
Bank Performance ◽  
Long Run ◽  
Short Run ◽  
Asset Quality

This study investigate the relationship between asset quality and deposit money banks performance in Nigeria over a period of 30 years ranging from 1986 to 2016, utilizing time series data collected from the Nigeria deposit insurance corporation annual reports and accounts, CBN financial stability report and CBN statistically bulletin for various years. The variables of study includes return on asset (ROA) proxy for Deposit Money Bank performance in Nigeria, ratio of non-performing loan to total loan (NPL), ratio of liquid assets to total assets (LAT) and ratio of liquid assets to short term liabilities (LAS) as measures of asset quality. The study utilizes both the descriptive and econometric techniques to analyze the time series data. The result shows that there is a short run relationship between asset quality and deposit money bank performance in Nigeria. Also, the co-integration result reveals the presence of a long run relationship between asset quality and deposit money bank performance in Nigeria while the granger causality result shows evidence of causality between asset quality and deposit money bank performance in Nigeria. Based on this we conclude by saying that maintaining sound assets quality position is critical to the long term performance, survival and sustainability of DMBs in Nigeria.

scholarly journals Credit management and performance of deposit money banks in Nigeria

2019 ◽  
Keyword(s):  
Deposit Insurance ◽  
Secondary Data ◽  
Data Bank ◽  
Positive Influence ◽  
Annual Reports ◽  
Credit Management ◽  
Long Run ◽  
Lending Rate ◽  
Negative Effect ◽  
Short Run

Granting of loans and advances remains one of the ways deposit money banks generate income to boost their performance. However, as important as this appears, it has led to incidence of rising non-performing loans in the credit portfolio of deposit money banks. Against this backdrop, this study investigated the effect of credit management on the performance of deposit money banks in Nigeria. The study employed secondary data sourced from Central Bank of Nigeria (CBN) statistical bulletin and annual reports of Nigeria Deposit Insurance Corporation (NDIC) from 1986 to2016. From the data, bank performance (dependent variable) was measured by return on assets (ROA) while credit management (independent variable) was proxied by ratio of non-performing loans to total loans (NPFL), bank deposit (BDEP) and lending rate (LENDR). The study employed autoregressive distributed lag (ARDL) technique to examine the effect of the independent variables on the dependent variable. The findings revealed that ratio of non-performing loans to total loans with coefficient of -0.362733 had negative effect in the short run but produced positive effect on performance of deposit money banks in the long run as indicated by the coefficient of 1.583503. On the other hand, bank deposit exhibited positive influence while lending rate had negative effect on the dependent variable both in the short run and long run. Given the overall significance of the model, it was concluded that credit management had significant effect on performance of deposit money banks in Nigeria. Thus, it was recommended that bank management should endeavor to reduce incidence of non-performing loans by conducting thorough assessment of any credit application prior to approval, especially customer’s character and previous credit record. Also, banks should closely monitor customer’s investment activities to ensure that granted loans are not diverted to unprofitable ventures which the loans are not initially meant for.

scholarly journals Implication of Coal Expansion and Regional Energy Trading Center to Climate Goal: Dual Sustainability Analysis

2021 ◽  
Author(s):  
Edmund Ntom Udemba
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Environmental Sustainability ◽  
Ecological Footprint ◽  
Energy Use ◽  
Kuznets Curve ◽  
Per Capita Gdp ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Abstract This current study seeks to investigate the policy implication of Turkey’s recent energy policies on its sustainable development. This study uses Turkey’s country-specific data and series of 1974 to 2018 for effective investigation and justification of the findings of this study with emphasis on both short run and long run implications. Three models were fitted to achieve study objectives to accommodate both environmental sustainability and economic impacts. Ecological footprint was considered better measure and used as proxy for the environment related model. In summary, with environment models, the selected series (per capita GDP, Industrialization, agriculture, coal as a single energy use and mixed energy use) except per capita GDP2 were found positively and significantly related to ecological footprint both in short run and long run which translates to poor performance of Turkey’s environment. Also, using economic growth model, the selected series (Industrialization, energy use and agriculture) were all confirmed positively and significantly related to the economic growth (per capita GDP). Additionally, Environmental Kuznets Curve (EKC) was established for Turkey’s environment and economic performance. Furthermore, using Granger causality as robust check to these findings, a nexus was found among the series confirming the validity of the cointegration (short and long run policies) estimations and results. In congruence with literature and hypotheses, the results from cointegration estimation shows that the twin polices may be good to the economic performance but will spark off adverse effect on environment.JEL Classification: C1, C32, E6, L7, O4, Q3, Q4, Q5

CSR and sustainability reporting practices in India: an in-depth content analysis of top-listed companies

2019 ◽  
Vol 15 (8) ◽  
pp. 1033-1053 ◽  
Author(s):  
Priyanka Aggarwal ◽  
Ajay Kumar Singh
Keyword(s):  
Content Analysis ◽  
Firm Size ◽  
Ownership Structure ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Reporting Practices ◽  
Industry Type

Purpose The purpose of this paper is to comprehensively analyze the corporate social responsibility (CSR) and sustainability reporting (SR) practices of Indian companies in terms of disclosure quantity and quality, and to investigate the differences in SR practices by SR dimension, industry, ownership structure, firm size and profitability. Design/methodology/approach Data are collected from annual reports/business responsibility reports (BRR)/CSR/sustainability reports of 60 top-listed companies in India. A comprehensive sustainability reporting index is developed. Content analysis technique is used. Inter-coder reliability is established. Findings Altogether, 18 items of the index are not disclosed by the majority of companies in India. SR quality is found significantly lower than the SR quantity. Moreover, SR practices significantly differ by dimension/category, industry-type and firm-size but are not influenced by ownership structure. However, the study fails to establish any conclusive relationship between SR and profitability. Practical implications The present study has several implications for corporates, practitioners, policymakers and stakeholders. The findings underscore the need for amendments in the Global Reporting Initiative guidelines and BRR framework of the Securities and Exchange Board of India to avoid patchy disclosures and ensure complete reporting by companies. Originality/value This study is among the foremost studies in India evaluating SR practices of top-listed companies in the wake of the mandatory BRR requirement from a quantitative as well as qualitative perspective using a multidimensional index.

Green accounting practices: lesson from an emerging economy

2019 ◽  
Vol 11 (4) ◽  
pp. 456-478 ◽  
Author(s):  
Haruna Maama ◽  
Kingsley Opoku Appiah
Keyword(s):  
Content Analysis ◽  
Environmental Sustainability ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Social Performance ◽  
Annual Reports ◽  
Accounting System ◽  
Green Accounting ◽  
Content Type ◽  
Reporting Practices

Purpose Reporting on only the financial performance of an organisation is no longer the focus of reporting because, gradually, investors and other stakeholders demand that companies also report on their effect on the environment and the society. Accounting and reporting for the environment has, therefore, increasingly become important to stakeholders and organisations because the effect of an organisation’s environmental and social performance on its financial health. The purpose of this study is to examine the extend of voluntary green accounting practice of companies listed on the Ghana Stock Exchange (GSE). Design/methodology/approach The analysis is based on content analysis of 202 annual reports of 23 listed firms in Ghana, from 2006 to 2015. Findings The mining, oil and gas sector has integrated environmental sustainability information in their accounting system. With regards to the nature of green disclosure, the content analysis depicts that only positive qualitative disclosures were provided in the annual reports. Again, almost all the companies increased the quality and quantity of environmental disclosures over the years. Practical implications The service and manufacturing sectors should integrate environmental sustainability information in their accounting system. This, in turn, may enhance their legitimacy to access critical resources for survival. Originality/value This study contributes to the green and social reporting practices literature from Ghana, a sub-Sahara Africa country.

The effects of announcement of green policies on equity portfolios

2016 ◽  
Vol 31 (2) ◽  
pp. 138-155 ◽  
Author(s):  
Vikash Ramiah ◽  
Thomas Morris ◽  
Imad Moosa ◽  
Michael Gangemi ◽  
Louise Puican
Keyword(s):  
Environmental Sustainability ◽  
Abnormal Returns ◽  
Systematic Risk ◽  
Environmental Policies ◽  
Wealth Creation ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Equity Portfolios ◽  
The Impact

Purpose – This paper aims to investigate the impact of 75 announcements of environmental policies on British equities over the period 2003 to 2012. In particular, the research has the following specific objectives: finding out whether there is wealth creation/destruction for investors as a result of the announcements of green policies and identifying changes in risk structure following the introduction of green policies. Design/methodology/approach – Using event study methodology and non-parametric tests, the authors attempt to find out whether announcements of environmental/sustainability policies are value constructive or destructive for equity investors. The CAPM is fitted with interaction variables to measure the change in systematic risk following announcements. Findings – The results show that the UK market is particularly sensitive to domestic, international and nuclear announcements. Cumulative abnormal returns in the range of 30-40 per cent were recorded in certain sectors. Consistent with the emerging literature, the authors observe that environmental policies induce changes in the systematic risk of businesses, both in the short run and the long run. Originality/value – To the best of authors’ knowledge, the literature does not provide any answer as to how the risk and return of British equity portfolios change following the announcement of green policies in the aftermath of the Kyoto Protocol on climate change. Furthermore, the literature does not differentiate among various categories of announcements (domestic, international and nuclear). Therefore, this paper bridges the gap in the literature on these two grounds.

scholarly journals Do the Banks Comply to GRI guidelines for Sustainable Reporting Practices? Empirical Evidence from Bangladesh

2020 ◽  
Vol 2 (2) ◽  
pp. 10-30
Author(s):  
Tanmay Biswas ◽  
Moudud-Ul-Huq Syed ◽  
Brishti Chakraborty ◽  
Reshma Pervin Lima ◽  
Shakila Jahan
Keyword(s):  
Stock Exchange ◽  
Theoretical Perspective ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Public And Private ◽  
Reporting Practices ◽  
Secondary Sources ◽  
Commerce Law ◽  
Development Goals

This paper explores the degree and nature of sustainability reporting practices of listed banks in Bangladesh in compliance with the Global Reporting Initiative (GRI) guidelines. Data are gathered from annual reports through content analysis of 29 banks listed in the Dhaka   Stock   Exchange (DSE) and Chittagong Stock Exchange (CSE) for the period between 2011 and 2018. Stakeholder and legitimacy theory is the theoretical perspective underlying the study. The findings of the study revealed that 0% in 2011 and 17.14% in 2018 disclosed sustainability reports in line with GRI. On the other hand, the disclosure of sustainability information trend has increased from 32% in 2011 to 59% in 2018 considering 22 categories of information where most of the banks disclosed the highest information relating to green banking (C7) least information relating to public policy (C19). The major limitations of the study are the size of the sample, only secondary sources of data, and descriptive. This study only involved 29 listed banks in DSE and CSE. The policymakers (Bangladesh Bank, Ministry of finance, commerce, law, and environment), management of the respective organization, the NGOs, and professional accounting bodies can progress to enact and amend corporate laws for effective sustainable reporting design for the public and private entities. This research recognizes the gap of sustainable reporting practices to implement the vision of 5'ps (people, prosperity, partnership, peace, and the planet) according to UN Sustainable Development Goals (SDGs) 2030.

Sign in / Sign up

Export Citation Format

Share Document