Received: 2019-08-18  |  Accepted: 2019-11-22  |  Published: 2019-12-15

Title

The impact of the publication of non-financial statements on the financial performance of companies with the identification of intersectoral features


Abstract

Investor expectations, rather than fundamentals, are increasingly influencing the value of a company. At a time when non-financial assets are becoming an important component of determining the value of the company, the disclosure of non-financial statements as a source of more extensive and meaningful information than financial statements, is becoming an increasingly popular topic of discussion of the scientific and business communities. Non-financial reporting includes "various types of external reporting provided by organizations to their stakeholders and covering those aspects of the organizations that go beyond the historical framework of financial performance". The information contained in non-financial reports can help investors form an opinion about the intellectual, financial, natural, human and social capital of the company and make a decision about investing. In the developed world, the publication of non-financial statements has become a common norm, while in Russia only a small proportion of companies still issue this type of reporting. The study of publishing non-financial reports dedicated to both theoretical and empirical literature, most empirical studies showed a positive effect of issue of non-financial reporting on the financial stability of companies. However, these studies do not focus on the impact of the publication of non-financial statements on the financial performance of companies in Russia. The purpose of this article is to study the impact of the publication of non-financial statements on the financial performance of Russian companies with the identification of intersectoral features. As a result of this study, it will be possible to understand how the disclosure of non-financial information affects the financial performance of Russian companies. From a practical point of view, this can help managers of companies in various industries to realize the importance or, conversely, the absence of the need to publish non-financial statements as a factor that can increase the credibility of the company in the eyes of investors and positively affect the financial results.


Keywords

non-financial reporting, corporate sustainability, corporate social responsibility, non-financial information, cost of the company, financial statements, profitability of assets, sustainable development


JEL classifications

G30 , G31


URI

http://jssidoi.org/jesi/article/464


DOI


Pages

1666-1685


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Borodin, Alex
Plekhanov Russian University of Economics, Moscow, Russian Federation http://www.rea.ru
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Shash, Nataliya
Plekhanov Russian University of Economics, Moscow, Russian Federation http://www.rea.ru
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Panaedova, Galina
North-Caucasus Federal University, Stavropol, Russian Federation http://eng.ncfu.ru
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Frumina, Svetlana
Financial University under the Government of the Russian Federation, Moscow, Russian Federation http://www.fa.ru
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Kairbekuly, Aidyn
Nazarbayev Intellectual School Semey, Semey, Kazakhstan https://sm.nis.edu.kz
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Mityushina, Irina
Belgorod State University, Belgorod, Russian Federation https://www.bsu.edu.ru
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Journal title

Entrepreneurship and Sustainability Issues

Volume

7


Number

2


Issue date

December 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

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