The Impact of Environmental Reporting on Financial Performance: Study on Global Companies Listed in Fortune 500

G. M. Shahariar Zamil(1), Zubair Hassan(2),


(1) Anglia Ruskin University, Lord Ashcroft International Business School, Cambridge, UK
(2) Faculty of Economics and Management Sciences, International Islamic University, Gombak, Malaysia

Abstract

The study has focused on examining the impact of environmental reporting on the financial performance of the firms listed in Fortune 500 for the time span of 2013 to 2017. This study appraises the financial performance through measuring independents variables reduction greenhouse emission, reduction waste, reducing water consumption. The target population was top 100 CSR reputed companies listed on Fortune 500 and the sample size was 50 companies with the observation of 250 sampling size. However, the collected data were analyzed by descriptive statistics, correlation, and regression analysis. The study findings reflected that nominated variables including reducing greenhouse emission and reduces water consumption were found to have a positive and significant impact on financial performance while another variable reduction waste was found to have a negative and significant impact on financial performance. Thereby, the study recommended that firms should have adopted resources to be environment-friendly aiming to be attractive to their stakeholders as well as save the planet. The study further suggests that firms need to be more concern and dedicated regarding environmental reporting which will enable them to improve their profitability.

Keywords

environmental reporting, financial performance, Fortune 500 companies

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DOI: https://doi.org/10.28992/ijsam.v3i2.78

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