This study’s purpose is to explore the connection regarding sustainability reports and its effect on corporate financial profitability. This study also takes into account industry-specific factors, which previous research are lacking. A quantitative research method has been used. The theoretical framework is based on institutional theory, legitimacy theory and stakeholder theory, which the hypotheses are founded from. The study analyzes the extent of sustainability reports in 2013 and how it affected the financial profitability in 2014. Financial profitability is measured with the indicators ROE and ROA. The study uses a regression analysis, where the independent variables are the business industry, corporate age, balance sheet liquidity, turnover and CSR number of words. The empirical result indicated that there is no connection regarding sustainability report and its effect on financial profitability. The study didn’t either show a connection regarding the company’s industry and its effect on profitability. The study’s research question is therefore answered with that there is no connection regarding sustainability report and its effect on financial profitability. This conclusion is also supported by the study’s control variable, corporate age, balance sheet liquidity and turnover. The result regarding ROE and ROA indicates that none of the variables should be included. The result should be interpreted with caution. The study analyzes the connection in a short period of time, which leads to the lacking of a long-turn aspect.
|Date of Award
|Eva Gustavsson (Supervisor) & Sven-Olof Collin (Examiner)
- Degree of Bachelor of Science in Business and Economics
- 15 HE credits
Swedish Standard Keywords
- Business Administration (50202)
- corporate sustainability reporting