Unlocking the link between company attributes and sustainability accounting in shanghai: firm traits driving corporate transparency and stakeholder responsiveness

Abstract

Sustainability accounting is crucial for corporate transparency and responsibility, but its relationship with firm characteristics in Shanghai, China’s financial center, remains poorly understood. This study uses a descriptive-analytical methodology to examine the impact of firm size, industry type, and profitability on sustainability accounting practices. A systematic literature review and meta-analysis of 43 studies provide insights into the extent and drivers of sustainability reporting. The findings reveal a positive association between firm size (r = 0.389) and profitability (r = 0.327) with sustainability reporting. Larger, more profitable firms, including state-owned enterprises, exhibit extensive sustainability accounting practices. However, the effect of industry type is inconclusive (r = 0.061), indicating a contingent relationship dependent on firm-specific contexts. The study suggests implementing regulations mandating minimum sustainability disclosure for large and profitable enterprises. Capacity-building initiatives for small private firms and the adoption of integrated reporting policies can enhance transparency. These outcomes contribute contemporary insights into corporate sustainability accounting in China’s evolving landscape. The implications extend to policy development and collaborative efforts to expand sustainability measurement and disclosure in Shanghai. Tailoring regulatory initiatives to firm profiles, such as size and profitability, enhances sustainability accounting practices. Targeted capacity-building programs, assurance mandates, and integrated reporting regulations improve the quality and usefulness of sustainability accounting information. Collaboration with the investor community is crucial for mainstreaming sustainability measurement and disclosure. This study deepens the understanding of sustainability accounting practices in Shanghai, an emerging economy financial hub. It provides insights for policy development, emphasizing firm and sector-specific factors driving sustainability accounting. Policymakers can promote transparency and responsibility by considering firms’ unique characteristics, fostering a more sustainable business environment.

The effect of digital zakat and accounting on corporate sustainability through financial transparency

“…The analysis revealed strong support for H1, which posited that digital accounting adoption has a positive and significant effect on corporate sustainability. This finding is consistent with previous research by Wang (2023) and Khan et al (2022) which emphasized the positive correlation between digital accounting adoption and enhanced sustainability practices. The adoption of digital accounting technologies was associated with improved reporting quality, operational efficiency, integration of sustainability metrics, stakeholder engagement, and resource allocation for sustainability initiatives.…”

“…The adoption of digital accounting technologies was associated with improved reporting quality, operational efficiency, integration of sustainability metrics, stakeholder engagement, and resource allocation for sustainability initiatives. These cumulative findings resoundingly endorse the hypothesis that digital accounting adoption exerts a positive and substantial impact on corporate sustainability (Khan et al, 2022;Wang, 2023). Moreover, H2, which proposed that digital Zakat integration has a positive and significant ef fect on corporate sustainability, also received robust empirical support.…”

“…One crucial facet illuminated by this research is the augmented reporting and transparency that accompany the integration of digital accounting systems. Wang (2023) investigation highlighted that organizations embracing digital accounting tools tend to furnish enhanced sustainability reports. Their findings underscored a positive correlation between the utilization of digital accounting technologies and the heightened quality and transparency of sustainability disclosures.…”

“…Wang and Yan (2023) underscored the significance of digital accounting in augmenting stakeholder engagement, with digital platforms enabling companies to interact with stakeholders, gather valuable feedback, and collaborate on sustainability projects, thereby fortifying their sus tainability endeavors. Finally, studies such as Wang (2023) research have shed light on how digital accounting systems empower companies to allocate resources more efficiently for sustainability projects. This body of work emphasized that digitalization equips organizations with the capacity to discern cost-saving opportunities, redirect financial resources towards sustainability initiatives, and meticulously measure the ensuing impact of these investments.…”