Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reporting

This study aims to determine how sustainability reporting disclosures and report format affect company performance in India’s mandatory reporting environment. The study employed feasible generalised least square, panel-correlated standard errors and probit regression. The sample size is 80, and the...

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Main Authors: Kofi Mintah Oware, Thomas Adomah Worae
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2023.2170075
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author Kofi Mintah Oware
Thomas Adomah Worae
author_facet Kofi Mintah Oware
Thomas Adomah Worae
author_sort Kofi Mintah Oware
collection DOAJ
description This study aims to determine how sustainability reporting disclosures and report format affect company performance in India’s mandatory reporting environment. The study employed feasible generalised least square, panel-correlated standard errors and probit regression. The sample size is 80, and the study period is between 2010 and 2020. We find that utilizing Business Responsibility Reporting (BRR) criteria as sustainability disclosures, have a positive and statistically significant relationship with business value (Tobin’s q) and market performance (SPR). Similarly, Global Reporting Initiative (GRI) sustainability reporting disclosures positively influence the SPR and adversely affect Tobin’s q. The study shows that BRR sustainability reporting disclosure and mandatory reporting have an interactive and positive influence on Tobin’s q. Also, we see that the stand-alone sustainability reporting format positively influences market performance (SPR). Lastly, we see that a firm with a mandatory reporting responsibility will choose a report format (i.e. stand-alone) to disclose its sustainability activities. The implication from the study shows that firms that continue to employ GRI sustainability reporting in India should be aware that it does not send out sound signals that can lead to a rise in firm value or improve long-term performance.
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spelling doaj-art-fd263b414fec440f80e78a483fba4a342025-08-20T02:15:50ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2170075Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reportingKofi Mintah Oware0Thomas Adomah Worae1Department of Banking Technology and Finance, Kumasi Technical University- Ghana, Ejisu, GhanaDepartment of Banking Technology and Finance, Kumasi Technical University, Ejisu, GhanaThis study aims to determine how sustainability reporting disclosures and report format affect company performance in India’s mandatory reporting environment. The study employed feasible generalised least square, panel-correlated standard errors and probit regression. The sample size is 80, and the study period is between 2010 and 2020. We find that utilizing Business Responsibility Reporting (BRR) criteria as sustainability disclosures, have a positive and statistically significant relationship with business value (Tobin’s q) and market performance (SPR). Similarly, Global Reporting Initiative (GRI) sustainability reporting disclosures positively influence the SPR and adversely affect Tobin’s q. The study shows that BRR sustainability reporting disclosure and mandatory reporting have an interactive and positive influence on Tobin’s q. Also, we see that the stand-alone sustainability reporting format positively influences market performance (SPR). Lastly, we see that a firm with a mandatory reporting responsibility will choose a report format (i.e. stand-alone) to disclose its sustainability activities. The implication from the study shows that firms that continue to employ GRI sustainability reporting in India should be aware that it does not send out sound signals that can lead to a rise in firm value or improve long-term performance.https://www.tandfonline.com/doi/10.1080/23311975.2023.2170075GRI and BRR sustainability disclosuresfirm performancereport formatsignalling theory and institutional theorymandatory reporting
spellingShingle Kofi Mintah Oware
Thomas Adomah Worae
Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reporting
Cogent Business & Management
GRI and BRR sustainability disclosures
firm performance
report format
signalling theory and institutional theory
mandatory reporting
title Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reporting
title_full Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reporting
title_fullStr Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reporting
title_full_unstemmed Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reporting
title_short Sustainability (disclosure and report format) and firm performance in India. Effects of mandatory CSR reporting
title_sort sustainability disclosure and report format and firm performance in india effects of mandatory csr reporting
topic GRI and BRR sustainability disclosures
firm performance
report format
signalling theory and institutional theory
mandatory reporting
url https://www.tandfonline.com/doi/10.1080/23311975.2023.2170075
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