An assesment of the relationship between sustainability reporting and firm profitability of publicly listed companies in the Philippines
Date
2019-12
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Abstract
This study aims to examine the impact of sustainability reporting on firm profitability in the
Philippines. Multiple linear regression analysis was used to analyze the data of 194 publicly-listed
companies (PLCs) that have submitted sustainability reports in the Philippine Stock Exchange
(PSE). In this study, firm profitability is the dependent variable, and it was measured by net profit
margin (NPM), return on assets (ROA) and return on equity (ROE). Meanwhile, sustainability
reporting is the independent variable. The results reveal a statistically significant and negative
relationship between sustainability reporting and firm profitability (through net profit margin and
return on assets) in the short term. No significant relationship is found between sustainability
reporting and return on equity. The results imply that it is not profitable for a PLC to publish
sustainability reports.