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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Victoria Bogdan & Luminita Rus & Dana Simona Gherai & Adrian Gheorghe Florea & Nicoleta Georgeta Bugnar, 2023. "A Streamline Sustainable Business Performance Reporting Model by an Integrated FinESG Approach," Sustainability, MDPI, vol. 15(24), pages 1-26, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:24:p:16860-:d:1300468
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    References listed on IDEAS

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    Cited by:

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    3. Nguyen Thi Mai Anh & Le Thi Khanh Hoa & Lai Phuong Thao & Duong Anh Nhi & Nguyen Thanh Long & Nguyen Thanh Truc & Vu Ngoc Xuan, 2024. "The Effect of Technology Readiness on Adopting Artificial Intelligence in Accounting and Auditing in Vietnam," JRFM, MDPI, vol. 17(1), pages 1-15, January.

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