Sustainability reporting in food industry: an innovative tool for enhancing financial performance

Abstract

PurposeThis study investigates the relationship between the level of sustainability reporting and Food Industry Performance (operational, financial and market).Design/methodology/approachUsing data culled from 1426 observations from 31 different countries for ten years (2008–2017), an independent variable derived from environmental, social, and corporate governance (ESG) score is regressed against dependent manufacture performance indicator variables [return on assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.FindingsThe findings elicited from the empirical results demonstrate that there is a significant relationship between ESG and financial performance (ROE). However, there is no significant relationship between ESG and operational performance (ROA) and market performance (TQ).Originality/valueThis paper presents a new framework that considers sustainability reporting as an innovation tool, examining innovation in terms of its positive or negative impact on financial performance. It contributes to research on the innovation paradigm and knowledge management by highlighting the significance of sustainability reporting as a tool of innovation in enhancing the financial performance.

The effects of mandatory non-financial reporting on financial performance. A multidimensional investigation on global agri-food companies

“…We found that mandatory non-financial disclosure can affect several dimensions of financial performance differently. We showed a general and positive direct effect of mandatory non-financial disclosure on operating profitability, shareholders' returns and returns on sales thus reinforcing and extending Buallay (2022b) and Goel (2021) findings. Nevertheless, the regulation on non-financial disclosure negatively moderates the relationship between sustainability issues and OROA , ROE and ROS.…”

“…Focusing on the dependent variable side, we used Operating Return on Assets ( OROA ) , Return on Equity ( ROE ), Return on Sales ( ROS ) and Cost of Debt as dependent variables in line with prior scholars' insights (e.g. Buallay, 2022b; Cupertino et al ., 2022a; Goel, 2021). We included different predictors in our analysis to examine the effects of non-financial disclosure regulation and corporate sustainability on distinct companies' financial dimensions related respectively to the standpoints of managers, shareholders, customers and debtholders.…”

Guest editorial: Open innovation in the food industry: what we know, what we don’t know, what we need to know

“…Moreover, as highlighted Misra and Mention (2022), the agri-food industry comprises complex value chains and networks consisting of input, production, processing and output stages. Of the eight articles in this special issues, one study addresses the intra-organizational level (Palumbo et al , 2022), and five studies mainly address the organizational level (Buallay, 2021; Dias et al , 2022; Rialti et al , 2022; Penco et al , 2022; Venturelli et al , 2022). The bias toward the organizational and inter-organizational level of analysis seems to mirror the general focus of agri-food industry OI-oriented research.…”

“…Accordingly, additional value can be obtained through tailored human resourced practices and multidirectional knowledge transfer aimed toward long-term strategic partnership (Mahdad et al , 2020; Palumbo et al , 2022). Moreover, the food sector has the capacity to bend the curve on sustainability, downsize the environmental deprivation (Buallay, 2021) and provide responses in societal crisis such as, for example, the COVID-19 pandemic (Penco et al , 2022). Thus, policymakers are encouraged to foster R&D programs and enhance innovation networks (Dias et al , 2022).…”

Corporate Reporting Reforms in 21st Century and Value Creation: A Study of Select Companies in India

“…These steps will empower the business enterprise for preparing itself to face the future risks and challenges. Buallay (2021) studied the association between the sustainability reporting and the food industry's operational, financial and market performance. As per this empirical research, there exists a significant relationship between the sustainability reporting and the financial performance (ROE).…”