Sustainability Reporting and Different Economic and Political Consequences

Abstract

This chapter covers the effect of country's economic and political situation on sustainability reporting disclosure (in particular the corporate social responsibility aspect). The first section discusses the previous empirical studies in this topic. Based on this, the second section develops the theoretical framework in order to examines the moderating role of a country's economic activities (GDP) and political or institutional quality (IQ) on the relationship between corporate social responsibility disclosure (CSRD) and a banks' operational, financial and market performance. For this purpose, we used ordinary least square (OLS), panel fixed-effect regression and IV-GMM to estimate the parameters of the models. We find that the CSRD scores negatively influences bank's performance. The moderator of CRSD and the level of economic activities have a positive influence on that bank's performance. However, the moderator (CRSD and country's institutional quality), while showing positive relationship with bank's performance, has a significant effect only on bank's operational and financial performance.

Citation

Buallay, A.M. (2022), "Sustainability Reporting and Different Economic and Political Consequences", International Perspectives on Sustainability Reporting, Emerald Publishing Limited, Leeds, pp. 95-117. https://doi.org/10.1108/978-1-80117-856-320221008