The Impact of sustainability reporting on the performance of listed companies on the Zimbabwe stock exchange

Author

Nyamaka, Zvikomborero

Title

The Impact of sustainability reporting on the performance of listed companies on the Zimbabwe stock exchange

Abstract

Sustainability reporting has become a global phenomenon where investors are now targeting companies which are sustainable. However, sustainability reporting, in developing countries such as Zimbabwe had been studied by few to identify its impact on performance. The study sought to ascertain the impact of sustainability reporting on the performance of listed companies in Zimbabwe. The main objective covered in this study was to determine the impact and relationship of sustainability reporting on performance of companies listed on the Zimbabwe Stock Exchange. The other objectives of the study were to evaluate the aspects of sustainability reporting that were disclosed by the listed companies to identify factors that influenced companies ‘attitude towards sustainability reporting and to find out the perception of stakeholders on the significance of undertaking sustainability reporting practices by Zimbabwe listed firms. The study employed content analysis. In the study sustainability reporting score was considered to be the independent variable and the dependent variables included return on assets (ROA), with firm size’s total assets as a control variable. The sample of the study was 9 companies who were from different 9 sector indices and different stakeholder groups across Zimbabwe. Both primary data and secondary data was utilized for the research. Correlation and regression analysis were done in this research after the data was put on IBM SPSS 20. It was noted that sustainability reporting had a negative impact in the short run and a positive impact in the long run and a relationship exist between these two variables. Moreover, it was discovered that company size, is one of the factors that influence company’s attitude towards sustainability reporting. It was recommended that further studies conducted on sustainability reporting and individual sustainability reporting aspects’ impact on corporate performance.

Date

October 2024

Publisher

BUSE

Keywords

Sustainability reporting

Company performance

Content analysis

Total assets

Supervisor

NIL