Affiliation:
1. Al-Zaytoonah University of Jordan
2. University of Tabuk
Abstract
The potential impact of sustainability reporting on a company’s financial performance could be measured through its stock price, profitability, or other financial metrics. This research aims to investigate the relationship between sustainability reporting and financial performance, in order to provide insights for companies, investors, and other stakeholders on the potential benefits and drawbacks of sustainability reporting. The research community of this study is formed out of all the 13 Jordanian commercial banks listed in the Amman Stock Exchange, and covering the period from 2012–2021. The study is a census study as it involves collecting data from every member of the study population, which allows for a comprehensive analysis of the relationship between sustainability reporting and financial performance. The data was collected from publicly available sources and analyzed using multiple regression analysis. The results of the study suggest that there is a strong linear relationship between sustainability reporting and the dependent variables return on assets (ROA) and financial leverage (LEV), but the relationship between sustainability reporting (SR) and return on equity (ROE) is not statistically significant. These findings provide insights for companies, investors, and other stakeholders on the potential benefits and drawbacks of sustainability reporting and can inform decision-making around sustainability initiatives.
Subject
Strategy and Management,Public Administration,Economics and Econometrics,Finance,Business and International Management
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