The Relationship between Corporate Sustainability Disclosure and Financial Performance: Case Study of Listed Company in Thailand
Article Sidebar
Published:
Apr 9, 2020
Keywords:
Corporate Sustainability Disclosure, Global Reporting Initiative, Financial Performance
Main Article Content
Abstract
Corporate sustainability reports have become part of the strategic planning of organizations, Since it is not mandatory in many countries, corporate sustainability report is usually voluntary. The most commonly used sustainability reporting framework follows the guidelines of the Global Reporting Initiative. The main purpose of this study is to investigate the relationship between corporate sustainability disclosures and financial performance with reference to listed companies in Thailand. GRI index data was collected from corporate sustainability reports and financial data was obtained from annual company reports from 2010 - 2014. Data was statistically analyzed by multiple regression. GRI indicators were employed to assess progress within six criteria: economic, environmental, labor, society, human right, and product responsibility. Financial performance measures include: ROA, ROE and NET. Analysis results illustrated that corporate sustainability disclosure has a significant relationship with ROA and NET. The analysis of the results of study examine the relationship of corporate suitability disclosure and financial performance. The GRI emphasizes a company’s consider those environment and social features that are significant to its key stakeholders and have the most significant impacts on its business. Organization which use the GRI guideline are strongly encouraged to submit their stability discourser reports to external assurance and corporate sustainability disclosure is an important driver for organizations towards better financial performance and organizational sustainability
Article Details
How to Cite
Poowadin, P. . ., Prasertsri , W. . ., & Nilapornkul, N. . . (2020). The Relationship between Corporate Sustainability Disclosure and Financial Performance: Case Study of Listed Company in Thailand. Dusit Thani College Journal, 12(3), 429–444. Retrieved from https://so01.tci-thaijo.org/index.php/journaldtc/article/view/240977
Section
Research Article
Article Screening Policy
- All research and academic articles to be published must be considered and screened by three peer reviews in the relevant field / article.
- All articles, texts, illustrations and tables published in the journal are the personal opinions of the authors. Editors don't always have to agree. And no responsibility whatsoever is the sole responsibility of the author.
- The articles to be published must never be published. Where did you first publish? And not in the consideration of other journals If the audit found that there has been a duplicate publication It is the sole responsibility of the author.
- Any article that the reader sees as being plagiarized or impersonated without reference. Or mislead the work of the author Please let the journal editor know it will be your greatest blessing.
References
1. Asian Sustainability Rating. (2010). Sustainability In Asia: ESG Reporting Uncovered.
2. Branco, MC & Rodrigues, L L. (2008). Social responsibility disclosure: A study of proxies for the public visibility of Portuguese banks. The British Accounting Review, vol.40, no.2, pp161-181.
3. Dan Dhaliwal, Oliver Zhen Li, Albert Tsang,Yong George Yang. (2014). Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency. J. Account. Public Policy, 33, 328-355.
4. Dando, N. and T. Swift. (2003). Transparency and assurance: Minding the credibility gap. Journal of Business Ethics, 44, 195-200.
5. Deegan, C., and Blomquist, C. (2006). Stakeholder influence on corporate reporting: A nexploration of the interaction between WWF-Australia and the Australian minerals industry. Accounting, Organizations and Society, 31, 343-72.
6. Ernst & Young. (2002). Corporate social responsibility: A survey of global companies. Melbourne: Author
7. EY; GreenBiz Group. (2012). Six Growing Trends in Corporate Sustainability. EY.
8. GRI (Global Reporting Initiative). (2002). Sustainability reporting guidelines., www.globalreporting.org.
9. GRI. (2011). Starting Points: GRI Sustainability Reporting: How valuable is the journey? GRI, Amsterdam.
10. Global Reporting Initiative. (2006). Sustainability reporting guidelines [Online]. A vailable:http://www.globalreporting.org [2009, June 30].
11. Gray, R., Kouhy, R., and Lavers, S. (1995). Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing and Accountability Journal, 8(2), 47-77.
12. Gray, R., Kouhy, R. and Lavers, S. (1995). Constructing a research database of social and environmental reporting by UK companies. Accounting, Auditing and Accountability Journal, Vol 8 No 2, pp. 78-101.
13. Guidry, R. P., & Patten, D. M. (2010). Market reactions to the first-time issuance of corporate sustainability reports: Evidence that quality matters. Sustainability Accounting, Management and Policy Journal, 1(1), 33-50.
14. Hull, C. E and S. Rothenberg. Firm Performance: The Interactions of Corporate Social Performance with Innovation and Industry Differentiation. Strategic Management Journal, Volume 29, Issue 7, 2013, pp. 781–789.
15. Hummels, H. and D. Timmer. (2004). Investors in need of social, ethical, and environmental information, Journal of Business Ethics, 52, 73-84.
16. Isaksson, R. and Steimle, U. (2009). What does GRI-reporting tell us about corporate sustainability?, The TQM Journal, Vol.21 No.2, pp.168-81.
17. Jones S., Frost, G., Loftus J., and Van Der Laan, S. (2007). An empirical examination of the market returns and financial performance of entities engaged in sustainability reporting. Australian Accounting Review, 17(41), 78-87.
18. Jos´e M. Moneva, Pablo Archel, Carmen Correa. (2006). GRI and the camouflaging of corporate unsustainability. Accounting Forum, 30, 121-137.
19. K.M.Y. Law., A Gunasekaran . (2012). Sustainability development in high-tech manufacturing firms in Hong Kong: Motivators and readiness. International Journal Production Economics, 137 (2012), 116–125.
20. Marc J. Epstein and Marie-Jose´eRoyv. (2005). Evaluating and monitoring CEO performance: evidence from US compensation committee reports. Corporate Governance: The international journal of business in society, 5 (4), 75-87
21. Odemilin, E.G., Samy, M. and Bampton, R. (2010), Corporate social responsiblilty: a strategy for sustainable business success. An analysis of 20 selected British corporations, Journal of Business in Society, Vol. 10.
22. Quick, Reiner. (2008). Voluntary sustainability reporting practices in Germany: a study on reporting quality. Contbilidade a Gestao, No 5.
23. Renard Y.J. Siew, Maria C.A. Balatbat and David G. Carmichael. (2013). The relationship between sustainability practices and financial performance of construction companies. Smart and Sustainable Built Environment, 2(1), 6-27.
24. Simnett, R, Vanstraelen, A and W. F. Chua. (2012). Assurance on Sustainability Reports: An International Comparison. The Accounting Review, 84(3), 937-67.
25. Solomon, A. and Lewis, L. (2002). Incentives and disincentives for corporate environmental disclosure. Business Strategy and the Environment, 11(3), 154-69.
26. SustainAbility. (2009). Count me in – the readers’ take on sustainability reporting, available at www.sustainability.com/downloads_public/insight_reports/Count_Me_In.pdf (accessed 1 May 2009).
27. Tullis, P. “Bloomberg’s Push For Corporate Sustainability,” 30 March 2015. Available: http://www.fastcompany.com/1739782/bloombergs-push-corporate-sustainability (accessed 15 April 2017).
28. Van de Velde, E., Vermeir, Wl, & Corten, F. (2005). Corporate social responsibility and financial performance. Corporate Governance, 5(3), 129-138.
29. Zhihong Wang and Joseph Sarkis. (2013). Investigating the relationship of sustainable supply chain management with corporate financial performance. International Journal of Productivity and Performance Management, 62(8), 871-888.
2. Branco, MC & Rodrigues, L L. (2008). Social responsibility disclosure: A study of proxies for the public visibility of Portuguese banks. The British Accounting Review, vol.40, no.2, pp161-181.
3. Dan Dhaliwal, Oliver Zhen Li, Albert Tsang,Yong George Yang. (2014). Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency. J. Account. Public Policy, 33, 328-355.
4. Dando, N. and T. Swift. (2003). Transparency and assurance: Minding the credibility gap. Journal of Business Ethics, 44, 195-200.
5. Deegan, C., and Blomquist, C. (2006). Stakeholder influence on corporate reporting: A nexploration of the interaction between WWF-Australia and the Australian minerals industry. Accounting, Organizations and Society, 31, 343-72.
6. Ernst & Young. (2002). Corporate social responsibility: A survey of global companies. Melbourne: Author
7. EY; GreenBiz Group. (2012). Six Growing Trends in Corporate Sustainability. EY.
8. GRI (Global Reporting Initiative). (2002). Sustainability reporting guidelines., www.globalreporting.org.
9. GRI. (2011). Starting Points: GRI Sustainability Reporting: How valuable is the journey? GRI, Amsterdam.
10. Global Reporting Initiative. (2006). Sustainability reporting guidelines [Online]. A vailable:http://www.globalreporting.org [2009, June 30].
11. Gray, R., Kouhy, R., and Lavers, S. (1995). Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing and Accountability Journal, 8(2), 47-77.
12. Gray, R., Kouhy, R. and Lavers, S. (1995). Constructing a research database of social and environmental reporting by UK companies. Accounting, Auditing and Accountability Journal, Vol 8 No 2, pp. 78-101.
13. Guidry, R. P., & Patten, D. M. (2010). Market reactions to the first-time issuance of corporate sustainability reports: Evidence that quality matters. Sustainability Accounting, Management and Policy Journal, 1(1), 33-50.
14. Hull, C. E and S. Rothenberg. Firm Performance: The Interactions of Corporate Social Performance with Innovation and Industry Differentiation. Strategic Management Journal, Volume 29, Issue 7, 2013, pp. 781–789.
15. Hummels, H. and D. Timmer. (2004). Investors in need of social, ethical, and environmental information, Journal of Business Ethics, 52, 73-84.
16. Isaksson, R. and Steimle, U. (2009). What does GRI-reporting tell us about corporate sustainability?, The TQM Journal, Vol.21 No.2, pp.168-81.
17. Jones S., Frost, G., Loftus J., and Van Der Laan, S. (2007). An empirical examination of the market returns and financial performance of entities engaged in sustainability reporting. Australian Accounting Review, 17(41), 78-87.
18. Jos´e M. Moneva, Pablo Archel, Carmen Correa. (2006). GRI and the camouflaging of corporate unsustainability. Accounting Forum, 30, 121-137.
19. K.M.Y. Law., A Gunasekaran . (2012). Sustainability development in high-tech manufacturing firms in Hong Kong: Motivators and readiness. International Journal Production Economics, 137 (2012), 116–125.
20. Marc J. Epstein and Marie-Jose´eRoyv. (2005). Evaluating and monitoring CEO performance: evidence from US compensation committee reports. Corporate Governance: The international journal of business in society, 5 (4), 75-87
21. Odemilin, E.G., Samy, M. and Bampton, R. (2010), Corporate social responsiblilty: a strategy for sustainable business success. An analysis of 20 selected British corporations, Journal of Business in Society, Vol. 10.
22. Quick, Reiner. (2008). Voluntary sustainability reporting practices in Germany: a study on reporting quality. Contbilidade a Gestao, No 5.
23. Renard Y.J. Siew, Maria C.A. Balatbat and David G. Carmichael. (2013). The relationship between sustainability practices and financial performance of construction companies. Smart and Sustainable Built Environment, 2(1), 6-27.
24. Simnett, R, Vanstraelen, A and W. F. Chua. (2012). Assurance on Sustainability Reports: An International Comparison. The Accounting Review, 84(3), 937-67.
25. Solomon, A. and Lewis, L. (2002). Incentives and disincentives for corporate environmental disclosure. Business Strategy and the Environment, 11(3), 154-69.
26. SustainAbility. (2009). Count me in – the readers’ take on sustainability reporting, available at www.sustainability.com/downloads_public/insight_reports/Count_Me_In.pdf (accessed 1 May 2009).
27. Tullis, P. “Bloomberg’s Push For Corporate Sustainability,” 30 March 2015. Available: http://www.fastcompany.com/1739782/bloombergs-push-corporate-sustainability (accessed 15 April 2017).
28. Van de Velde, E., Vermeir, Wl, & Corten, F. (2005). Corporate social responsibility and financial performance. Corporate Governance, 5(3), 129-138.
29. Zhihong Wang and Joseph Sarkis. (2013). Investigating the relationship of sustainable supply chain management with corporate financial performance. International Journal of Productivity and Performance Management, 62(8), 871-888.