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The Evaluation of the Relationship between the Companies Sustainability Reporting and Their Financial Performance

Author

Listed:
  • Mihaela Ionela Socoliuc

    (6Stefan Cel Mare University, Suceava, Romania)

  • Bogdan-Stefan Ionescu

    (Bucharest University of Economic Studies, Romania)

  • Flavius Andrei Guinea

    (Bucharest University of Economic Studies, Romania)

  • Marian Socoliuc

    (6Stefan Cel Mare University, Suceava, Romania)

  • Veronica Grosu

    (6Stefan Cel Mare University, Suceava, Romania)

  • Elena Hlaciuc

    (6Stefan Cel Mare University, Suceava, Romania)

Abstract

The purpose of the present research is to assess the impact of ESG reporting on the financial performance of the companies listed on the Bucharest Stock Exchange (BVB). The research methodology has been based both on a qualitative approach used in the analysis of the specialised literature and on the formulation of the research hypotheses and on a statistical analysis, respectively. The primary financial information found in the financial reports of 67 companies listed on the BVB for the period 2020-2022 has been used to determine the financial performance indicators. The ESG information that has been extracted from the sustainability reports, the administrators reports, or from the companies' websites has been subjected to scoring procedures in order to design an aggregate ESG disclosure score. Both data sets have been manually collected and statistically processed by using the financial and economic profitability ratios, the earnings per share, and the market added value as dependent variables, whereas the aggregate ESG disclosure score has been used as the independent variable. The findings have shown that an increase in the ESG disclosure of ESGs will lead to an improvement in terms of economic and financial performance. A higher ESG disclosure index score results in higher earnings per share. However, it does not have a significant impact on the increase in the company's market value. Therefore, companies that have integrated sustainability into their business strategy and communicated it effectively have been perceived by investors as better prepared for future risks and opportunities. This perception prompts investors to redirect their funds towards sustainable and socially responsible investments, which, in turn, will contribute to a superior financial performance for these companies.

Suggested Citation

  • Mihaela Ionela Socoliuc & Bogdan-Stefan Ionescu & Flavius Andrei Guinea & Marian Socoliuc & Veronica Grosu & Elena Hlaciuc, 2025. "The Evaluation of the Relationship between the Companies Sustainability Reporting and Their Financial Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 27(70), pages 884-884, August.
    • Handle: RePEc:aes:amfeco:v:27:y:2025:i:70:p:884
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    References listed on IDEAS

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    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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