The influence of corporate sustainability performance on financial performance

What is it about?

Present study is a modest attempt to explore the disclosure of corporate sustainability practices and to examine the association between sustainability performance and financial performance in Asian context considering firms from India and Japan. The selection of Japan and India for the present context is justified on the ground that the former is more advanced in the matter of publishing sustainability report as compared to the latter.

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Why is it important?

First, only handful number of empirical studies relating to the corporate sustainability performance and financial performance are conducted in India and Japan. Second, the concept of corporate sustainability is highly developed in Japan and thus, provides highest number of sustainability report in Asia. Whereas, in India, the concept of CS is still in its nascent stage (Carrot and Stick, 2013). Thirdly, there is no comparative study relating to corporate sustainability performance between these two countries. A comparative study may be a valuable impetus to the corporate managers for investment decision making towards corporate sustainability and may help in formulating policy for contributing towards sustainable development.