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Assessing the Role of Sustainability Disclosure on Firms’ Financial Performance: Evidence from the Energy Sector of Belt and Road Initiative Countries

Author

Listed:
  • Dejun Zhou

    (School of Law, Jiangsu University, Zhenjiang 212013, China)

  • Ummar Faruk Saeed

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Andrew Osei Agyemang

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

This study examines the influence of sustainability disclosure on a firm’s financial performance in the energy sector, taking into account the role of ownership concentration as a moderating factor. This study utilized secondary data from 239 energy companies from the Belt and Road Initiative (BRI) nations from 2009 to 2022. This study employed the Common Correlated Effect Mean Group and the Pooled Mean Group estimators for the analysis. To determine which component of sustainability disclosure influences a firm’s financial performance, this study divided the measurement of sustainability into three themes: environment, social, and governance. The findings revealed a positive relationship between environmental disclosure and financial performance. Similarly, we found a positive relationship between social disclosure and financial performance. However, governance disclosure does not contribute to financial performance. Furthermore, we found that ownership concentration positively moderates the association between environmental disclosure and financial performance, as well as social disclosure and financial performance. The results suggest that energy firms in developing countries should prioritize disclosing their environmental and social policies to ensure long-term financial performance.

Suggested Citation

  • Dejun Zhou & Ummar Faruk Saeed & Andrew Osei Agyemang, 2024. "Assessing the Role of Sustainability Disclosure on Firms’ Financial Performance: Evidence from the Energy Sector of Belt and Road Initiative Countries," Sustainability, MDPI, vol. 16(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:930-:d:1324054
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    References listed on IDEAS

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    Cited by:

    1. Naiping Zhu & Ishmael Wiredu & Andrew Osei Agyemang & Abednego Osei, 2024. "Addressing corporate governance and carbon accounting disclosure gaps: A path toward firms commitment to sustainable development goal 13," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5421-5436, October.
    2. Angelina Kissiwaa Twum & Jijian Zhang & Xuhui Ding & Joana Cobbinah, 2025. "Realizing Green Growth in Belt and Road Initiative Economies: The Roles of Financial Support, Renewable Energy, and Eco-Footprint Dynamics," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(6), pages 18738-18773, December.
    3. Muhammad Salman, 2026. "Green productivity and energy transition under china’s belt and road policy: a geopolitical perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(4), pages 10559-10590, April.
    4. Ayman Abdalla Mohammed Abubakr & Mastora Sahal Gomaa Sahal & Ali Alhag Ali Mohammed & Nuseiba Azzam Ibrahim Yousif & Fatihelelah Mohammed Ahmed Mohammed & Ziad Mohammad Roustom, 2024. "Challenges of Disclosing Environmental Accounting Performance and Its Impact on Quality Supply Chains to Promote Sustainable Development in Companies—Experiences of Some Companies in the GCC—2024," Sustainability, MDPI, vol. 16(24), pages 1-20, December.
    5. Guanghui Chang & Ishmael Wiredu & Prince Kofi Boadu & Andrew Osei Agyemang, 2026. "Navigating sustainable development: exploring the nexus of board attributes and environmental accounting information disclosure in China’s construction industry," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(4), pages 10021-10046, April.
    6. Wu Ning & Ummar Faruk Saeed & Angelina Kissiwaa Twum & Abednego Osei, 2024. "Can ESG disclosures promote firms going concern? Evidence from BRICS countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3792-3803, September.
    7. Naiping Zhu & Abednego Osei & Andrew Osei Agyemang, 2024. "Do board attributes influence environmental sustainability disclosure in manufacturing firms? Evidence from sub‐Saharan Africa," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4759-4771, September.

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