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Sustainability Reporting and Firms’ Economic Performance: Evidence from Asia and Africa

Author

Listed:
  • Alicia Girón

    (National Autonomous University of Mexico (UNAM))

  • Amirreza Kazemikhasragh

    (National Autonomous University of Mexico (UNAM))

  • Antonella Francesca Cicchiello

    (Università Cattolica del Sacro Cuore)

  • Eva Panetti

    (Università degli Studi di Napoli Parthenope)

Abstract

Given the increasing concern for the global environmental issues and the relating need for preservation of the ecosystem, sustainability reporting has become more and more important, to both developed and developing economies, sparking the interest of the literature. This study primarily aims to investigate the factors that influence the adoption of new sustainability reporting practices and external assurance. Also, this paper examines the relationship between the reporting activity and firms’ economic performance. The paper combines data from the Global Reporting Initiative’s (GRI) Sustainability Disclosure Database and the Orbis database, from Bureau van Dijk. More specifically, the study uses two logit models and one regression model based on a sample of 366 large Asian and African companies which have addressed the SDGs in their sustainability reports published in 2017. The results reveal that operating in the manufacturing sector and having a higher percentage of women directors in the company’s management structure are positively related to the adoption of sustainability reporting and external assurance. Also, operating in the manufacturing sector leads to better firms’ economic performance. Contrarily from previous studies, the age of the company’s board of directors does not have influences on the use of sustainability reporting. This research contributes to the sustainability issues in the context of emerging markets by explaining the driving factors behind it and its linkage with firms’ performance.

Suggested Citation

  • Alicia Girón & Amirreza Kazemikhasragh & Antonella Francesca Cicchiello & Eva Panetti, 2021. "Sustainability Reporting and Firms’ Economic Performance: Evidence from Asia and Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1741-1759, December.
    • Handle: RePEc:spr:jknowl:v:12:y:2021:i:4:d:10.1007_s13132-020-00693-7
    DOI: 10.1007/s13132-020-00693-7
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    More about this item

    Keywords

    Sustainability reporting; Sustainable development goals (SDGs); Board gender diversity; Firm performance;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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