SUSTAINABILITY REPORTING AND FIRM PERFORMANCE: EVIDENCE IN MALAYSIA

Abstract

Sustainability reporting has emerged as a common practice in 21st century businesses. It is a platform to balance performance of a business in economic, social, environmental dimensions. Sustainability reporting is the key drive of financial performance. The main issue is to examine the level of sustainability reporting in improving firm performance among public listed firms in Malaysia. Even though sustainability reporting has been introduced earlier but the implementation is still not constant among the firms. Thus, this study also investigates the relationship between sustainability reporting and firm performance. The sample of study consist of 100 firms which were selected based on top companies with good disclosure for the year 2016 and using return on asset, return on equity, earnings per share and dividend per share in measuring the firm performance. In summary of the findings, the regression result suggests that sustainability reporting has a positive relationship with firm performance when using return on asset and earnings per share.