The Non-Financial Information Contribution to Value Creation for Companies
Author:
Adelina FOMETESCU, Camelia-Daniela HATEGAN
JEL:
M40, Q56
DOI:
10.20869/AUDITF/2024/173/007
Keywords:
non-financial information, value creation, transparency, ESG,
Abstract:
Non-financial information plays an increasingly important role in creating value for companies and has become an essential factor in modern business strategies. While financial information provides insight into a company's past financial performance, non-financial information provides a more comprehensive and contextualized view of how the company interacts with its environment, employees, customers, society and other stakeholders. The objective of the paper is to identify the contribution of non-financial information to the value creation for companies. The studied population represents the companies listed on the Bucharest Stock Exchange that were evaluated from the point of view of the transparency of non-financial reporting for the financial year 2021. The indicators used are represented by: evaluation scores made by two specialized entities, the communication indicator - Vektor, the inclusion of companies in the BET index, return on equity, return on assets, profitability and the number of employees for the period of 2021. The results of the study showed that the analyzed companies were evaluated with acceptable scores by the evaluation entities and positive and negative correlations were found between the evaluation scores and the profitability indicators. In general, non-financial information provides critical insights to understand the social, environmental and economic impact of companies' activities and can significantly contribute to value creation, especially in the long term for companies and society as a whole.
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Article(514KB)