A Sectoral-Based Approach to the Link Between Financial Performance and Sustainability
Author:
Șerban Radu-Alexandru1, Mihaiu Diana Marieta2, Herciu Mihaela3, Ogrean Claudia4
Affiliation:
1. 1 Lucian Blaga University of Sibiu , Romania 2. 2 Lucian Blaga University of Sibiu , Romania 3. 3 Lucian Blaga University of Sibiu , Romania 4. 4 Lucian Blaga University of Sibiu , Romania
Abstract
Abstract
The main objective of this paper is to analyze if there is a link between financial performance and sustainability in the case of listed companies on stock markets, worldwide, and across all sectors of activity because sustainability has become an important part of the company’s strategy. The financial performance of the companies was calculated using public financial data from the annual financial statements, while the environmental, social, and governance (ESG), and controversies scores were used as performance metrics for sustainability at company level. To evaluate financial performance a variety of indicators were used, such as assets management, debt management or market value performance, as a benchmark tool to compare the standing of companies in each sector of activity analyzed. Our findings showed that there are different relations (strong or weak) between financial performance and sustainability if a sectoral-based approach is considered. As a result, the link between financial performance and sustainability was tested on a sample of more than 5,000 companies divided into 10 sectors of activities, according to the Global Industry Classification Standard (GICS), for the period 2017-2021. The main conclusion of this study is that they are interrelated, capitalizing on each other.
Publisher
Walter de Gruyter GmbH
Subject
Economics, Econometrics and Finance (miscellaneous),Business, Management and Accounting (miscellaneous),Social Psychology
Reference25 articles.
1. Aivaz, K. A. (2021). Correlations Between Infrastructure, Medical Staff and Financial Indicators of Companies Operating in the Field of Health and Social Care Services. The Case of Constanta County, Romania. Monograph „Under the presure of digitalization: challenges and solutions at organzational and industrial level, 17-25. 2. Alareeni, B. A., & Hamdan, A. (2020). ESG impact on performance of US S&P 500-listed firms. Corporate Governance: The International Journal of Business in Society. 3. Almeyda, R., & Darmansya, A. (2019). The influence of environmental, social, and governance (ESG) disclosure on firm financial performance. IPTEK Journal of Proceedings Series, (5), 278-290. 4. Balatbat, M., Siew, R., & Carmichael, D. (2012). ESG scores and its influence on firm performance :Australian evidence. In Australian School of Business School of Accounting, School of Accounting Seminar Series Semester (Vol. 2, pp. 1-30). Australia: University of New South Wales, India. 5. Baran, M., Kuźniarska, A., Makieła, Z. J., Sławik, A., & Stuss, M. M. (2022). Does ESG Reporting Relate to Corporate Financial Performance in the Context of the Energy Sector Transformation? Evidence from Poland. Energies, 15(2), 477.
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献
|
|