Investigating The Relationship Between Corporate Sustainability Reporting and Firm Performance: Evidence from Emerging Economy

Abstract

Since businesses are expected to be open about their social and environmental initiatives, corporate social responsibility (CSR) disclosure has grown in importance. The level of CSR disclosure, firm size, financial leverage, and financial performance as determined by Return on Assets (ROA) are all examined in this study. The study is based on secondary data that was gathered from particular businesses and examined with IBM SPSS. To accomplish the goals of the study, descriptive statistics, correlation analysis, and multiple regression techniques were used. The results show that ROA and CSR disclosure have a positive but statistically insignificant relationship. Financial performance is also not significantly affected by firm size or financial leverage. Additionally, the overall regression model is found to be statistically insignificant, suggesting that short-term variations in profitability cannot be explained by CSR disclosure or the chosen firm-specific variables. These findings imply that although CSR initiatives are significant from a moral and social standpoint, business performance may not immediately benefit financially from them. The study highlights the need for the firms to focus on the effective implementation of CSR activities and for future research to examine the long term impact of CSR on financial outcomes using a broader sample and additional performance measures.