Date of Conferral

7-15-2024

Date of Award

July 2024

Degree

Ph.D.

School

Management

Advisor

David Bouvin

Abstract

This study explores the relationship between voluntary sustainability reporting and corporate financial performance, focusing on the influence of stakeholders on sustainability initiatives. The research uses legitimacy and stakeholder theories, drawing from signaling and institutional theories, to examine the impact of sustainability initiatives on financial results. The analysis was conducted on United States aerospace and defense companies listed in the Fortune 500, and Bloomberg’s ESG database. The independent variables included GRI-2019 – GRI-2022, stakeholders influence “STAKE,” firm size, and growth. The dependent variables were return on assets and Tobin’s Q. Return on investment was used as the moderating and mediating variable. A correlational and multiple regression design was used to characterize the relationship between the independent and dependent variables and predict their direction. The results showed an insignificant relationship between voluntary sustainability reporting and corporate financial performance while controlling for firm size, and growth measured in total assets. This study adds to the body of knowledge in the research on the relationship between sustainability and financial performance. It assists business leaders in making strategic decisions regarding sustainability programs. This research might further the knowledge of stakeholders and related theories by focusing on new research directed toward the association between voluntary sustainability reporting and corporate financial performance and stakeholder involvement that might influence corporate financial performance. Future research should consider incorporating additional variables to increase the usefulness of the mode.

Download

Share

 
COinS