The Impact of Sustainability Reporting Dimensions on Financial and Non-Financial Performance of Manufacturing and Non-Manufacturing Companies Listed on the Stock Exchange
Keywords:
Sustainability Reporting, financial performance, Non-financial performanceAbstract
Objective: The aim of this research is to examine the impact of disclosing sustainability reporting dimensions on the financial and non-financial performance of manufacturing and non-manufacturing companies. Methodology: This research is a descriptive-correlational study. The statistical population includes all managers of manufacturing and non-manufacturing companies listed on the Stock Exchange, from which 240 individuals were purposefully selected. To collect data, a researcher-designed and standardized questionnaire was used (Cronbach's alpha coefficient: 0.78). Structural equation modeling and AMOS software version 22 were employed to test the research hypotheses. Findings: The results showed that the disclosure of sustainability reporting dimensions has a positive and significant impact on the financial and non-financial performance of both manufacturing and non-manufacturing companies (p < 0.001). Conclusion: It can be concluded that the disclosure of sustainability dimensions positively influences financial indicators such as return on assets, market share growth, and sales revenue, while also enhancing non-financial benefits such as customer satisfaction, internal process efficiency, and organizational learning. These results emphasize the value of integrating sustainability practices into corporate strategies to achieve long-term competitive advantages. The implications of this study underscore the necessity for regulatory bodies to develop integrated sustainability reporting standards to ensure transparency and accountability in corporate activities.
Downloads
References
Abedini Nazari, N., Adab, H., & Chahardoli, A. (2024). Designing a Model for the Integration of Physical, Informational, and Financial Processes in the Supply Chain to Achieve Resilience in the Automotive Industry. Dynamic Management and Business Analysis, 3(1), 192-204. https://doi.org/10.61838/dmbaj.3.1.11
Aghaei Ghaleche, S. (2023). Maintenance of Employees and Its Impact on Organizational Performance with the Moderation of Sustainable Competitive Advantage. Dynamic Management and Business Analysis, 1(1), 45-58. https://doi.org/10.22034/dmbaj.2024.2022641.1012
Ahmadi, R., & Saffari, H. (2024). The Effect of Knowledge-Based Leadership on Company Performance According to the Mediating Role of Customer Knowledge Management and Innovation Quality. Dynamic Management and Business Analysis, 2(4), 13-20. https://doi.org/10.22034/dmbaj.2024.2022216.1009
Almashhadani, M., & Almashhadani, H. A. (2023). The Impact of Sustainability Reporting on Promoting Firm performance. International Journal of Business and Management Invention, 12(4), 101-111. https://www.researchgate.net/publication/370199383_The_Impact_of_Sustainability_Reporting_on_Promoting_Firm_performance
Bonabi Qadim, R., Vaez, S. A., & Ensani, R. (2022). The Impact of Intellectual Capital on Business Sustainability Performance Reporting and Business Strategy. Financial Accounting Research, 2(52), 63-90. https://far.ui.ac.ir/article_27094.html?lang=en
Buallay, A., El Khoury, R., & Hamdan, A. (2021). Sustainability reporting in smart cities: A multidimensional performance measures. Cities, 119, 103397. https://doi.org/10.1016/j.cities.2021.103397
Burhan, A. H. N., & Rahmanti, W. (2012). The impact of sustainability reporting on company performance. Journal of Economics, Business, & Accountancy Ventura, 15(2), 257-272. https://doi.org/10.14414/jebav.v15i2.79
Friske, W., Hoelscher, S. A., & Nikolov, A. N. (2022). The impact of voluntary sustainability reporting on firm value: Insights from signaling theory. Journal of the Academy of Marketing Science, 51(2), 372-392. https://doi.org/10.1007/s11747-022-00879-2
Garciia-Benau, M. A., Zorio, A., & Sierra, L. (2013). Sustainability development and the quality of assurance reports: Empirical evidence. Business Strategy and the Environment, 22(7), 484-500. https://doi.org/10.1002/bse.1764
Gupta, A. K., & Gupta, N. (2020). Effect of corporate environmental sustainability on dimensions of firm performance-Towards sustainable development: Evidence from India. Journal of Cleaner Production, 253, 119948. https://doi.org/10.1016/j.jclepro.2019.119948
Hakimi, N., Fathi, Z., & Pourbahrami, B. (2024). Application of Metacombination Technique in the Financial Flow Based on Blockchain Technology in the Hospital Ecosystem. Dynamic Management and Business Analysis, 2(4), 74-93. https://doi.org/10.22034/dmbaj.2024.2035663.1036
Hasanzadeh, I., Sheikh, M. J., Arabzadeh, M., & Farzinfar, A. A. (2023). The Role of Economic Policy Uncertainty in Relation to Financial Market Instability and Stock Liquidity in Tehran Stock Exchange Companies. Dynamic Management and Business Analysis, 2(3), 163-178. https://doi.org/10.22034/dmbaj.2024.2031971.2315
Iliemena, R. O., Wobo, H. O., & Goodluck, H. C. (2023). Corporate Governance Sustainability Reporting and Shareholders' Wealth Creation. Proceedings of the 7th Annual International Academic Conference on Accounting and Finance Disruptive Technology: Accounting Practices, Financial and Sustainability Reporting,
Khalili, M., Zabihi, A., & Faghani Makarani, K. (2023). Developing a Model for the Impact of Organizational Culture and Contingency Factors on Sustainability Reporting with an Economic Performance Approach. Management Accounting and Auditing Knowledge, 13(2), 319-338. https://www.jmaak.ir/article_22277.html?lang=en
Kuo, L. C. R. (2011). Industrial changes in corporate sustainability performance-an empirical overview using data envelopment analysis. Journal of Cleaner Production, 56, 147-155. https://doi.org/10.1016/j.jclepro.2011.09.015
Lechner, P., & Gatzert, N. (2017). The drivers and value of enterprise risk management: evidence from ERM ratings. The European Journal of Finance, 25(3), 234-255. https://doi.org/10.1080/1351847X.2018.1514314
Mohd Harif, M. A. A., Hoe, C., & Ahmad, M. I. (2012). The financial and non-financial performance indicators of paddy farmers' organizations in Kedah. Available at SSRN, [Add page range]. https://doi.org/10.2139/ssrn.2130415
Nagornova, A. (2016). Sustainability reporting, financial performance and profitability https://archives.kdischool.ac.kr/handle/11125/31866
Qrunfleh, S., & Tarafdar, M. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International Journal of Production Economics, 147, 340-350. https://doi.org/10.1016/j.ijpe.2012.09.018
Rajabi Farjad, H., & Toranian, N. (2024). Identifying Factors Affecting the Performance of Sustainable Human Resources in the Insurance Industry. Dynamic Management and Business Analysis, 2(4), 33-52. https://doi.org/10.22034/dmbaj.2024.2022329.1015
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804. https://doi.org/10.1177/0149206308330560
Xiang, R., Chen, X. R., Chen, X., Cheng, X. B., Zhang, X. Q., Yan, C., & Zhang, Q. (2017). Lithiophilic sites in doped graphene guide uniform lithium nucleation for dendrite‐free lithium metal anodes. Angewandte Chemie, 129(27), 7872-7876. https://doi.org/10.1002/ange.201702099
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Alaa Dashee Dughaim, Arezoo Aghaei Chadegani, Mohammed Sameer Deherieb Alrobaaiy, Mohammad Alimoradi (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
