The impact of reporting on non-financial performance in the sustainable development report on the profitability of energy sector companies in Eutope and Republic of Serbia

[A. O. Savić]

314 listova

Biografija autora: list 311 Bibliografija: listovi 271-310

Sustainable Development

In the era of the economy knowledge, non-financial performances reported in sustainability reports are becoming increasingly important for creating value, gaining and sustaining competitive advantage. Therefore, measuring environmental, social and corporate governance performance is important for assessing their impact on the profitability of energy sector companies in Europe and the Republic of Serbia. The question arises as to whether reporting on a limited review on sustainable development reports increases the reliability of the information for decision-making by various stakeholders. The subject of this doctoral dissertation is investigation of non-financial performance reported in reports on sustainable development and an attempt to identify the effects of their impact on the profitability of energy sector companies in Europe and the Republic of Serbia. Also, special attention has been paid to researching the need for auditor reporting on a limited review, all in order to increase the reliability of information for decision-making by various stakeholders. The main objective of the theoretical-empirical research in the doctoral dissertation is to determine the effect of the disclosure of non-financial information on the profitability of companies in the energy sector in Europe and the Republic of Serbia using composite indices and to point out the importance of reporting on the limited review. The sample includes 60 companies within the energy sector in Europe and the Republic of Serbia whose reports on sustainable development are available on the website of the Global Reporting Initiative for the nine-year period (2012-2020). The starting point in the research is the analysis of environmental, social and corporate management performance of companies, where five non-financial indicators from each area were selected. As the main result of the research, the composite indices of environmental, social and corporate management performance were created and their impact on the profitability indicators of companies was examined. Based on the environmental, social and corporate management performance, new models were created, using linear regression, to predict the behavior of ROA (Return on assets) and ROE (Return on equity). A benchmarking analysis of the value of non-financial performance indicators in the Republic of Serbia was performed, with the average value of the non-financial performance indicators of the European companies, the average of the group of five best-ranked European companies and the best European companies for individual composite indices (environmental, social and corporate governance performance). In the end, the conditionality of the need to conduct an independent external verification of reports on sustainable development by auditing firms was determined, and a comparative analysis determined the difference between independent reviews of auditors on a limited review of reports on sustainable development of the European companies in the energy sector and the company NIS a.d. Novi Sad.

nefinansijske performanse, izveštaji o održivom razvoju, pokazatelji profitabilnosti, revizija

non-financial performance, reports on sustainable development, profitability indicators, audit

502.131.1:620.9(497.11)(043.3)

S 192

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