Empirical Study on the Analysis of the Relationship Between the Relevance of Sustainability Performance Reporting and the Financial Performance of Companies

Companies are currently interested not only in financial performance, but also in the social and environmental practices carried out. Evaluating the performance of companies from a sustainability perspective involves measuring their capacity to obtain long-term profit, allowing sustainable survival by reducing risks in a dynamic and extremely complex environment. Triple Bottom Line (TBL) can be considered an important strategy to follow in the face of one of the greatest challenges of current businesses, achieving sustainability. Although the economic dimension of TBL is critical in business competitiveness, financial sustainability is not sufficiently studied in business management research and strategies. The author believes that it is necessary to deepen knowledge regarding the relationship between sustainable business practices and the financial performance of companies. The current study aims to analyse the influence of the three TBL dimensions on the financial performance of companies. Using panel data regression analysis, the author aimed to test whether the financial performance of companies listed on the BSE is influenced by sustainability performance reporting. The study examines the impact of sustainability performance reporting through the Triple Bottom Line (TBL) framework on the financial performance of companies listed on the Bucharest Stock Exchange (BSE) on the Regulated market, in the Premium, Standard, and Int’l categories, during the period 2018-2023.To calculate the financial indicators used in the study and the degree of reporting and compliance with sustainability requirements, there were analyzed the annual reports and sustainability reports of the selected companies, published on the official website of the Bucharest Stock Exchange, as well as on their websites over six years (2018-2023). The results of the study support that the financial performance of companies listed on the BSE on the Regulated market, in the Premium, Standard, and Int’l categories, during the period 2018-2023 is positively and significantly influenced by sustainability reporting.