The Impact of Sustainability Reporting on Organization Performance - Evidence from Listed Companies in Bank,Finance and Insurance Sector in Sri Lanka

Abstract

Sustainability means meeting the present needs without compromising the needs of the future generation. Organizations are responsible for creating economic value not only to the organization but also to social and to environment. The objectives of the research are to examine the impact of sustainability reporting on organization financial performance and to determine the level of sustainability reporting of organization with a special focus on bank, finance & insurance sector in Sri Lanka. Level of sustainability reporting is the independent variable and it is measured via environment disclosure, social disclosure and economic disclosure. The financial performance is the dependent variable and it is identified by referring Return on Asset (ROA). Size of the organization used as the control variable of the developed model. Financial and non-financial data were collected from annual reports and stand-alone sustainability reports reporting under GRI G4 guidelines published on the company’s website during the period of 2012 to 2017. Sixty firms were used for the final analysis due to the unavailability of the data. Panel data regression was used to analyze data using E-Views Statistical package application. The results indicate that sustainability reporting has positively significant impact on organization financial performance at both with and without effect of selected control variable