This study investigates the relationship between corporate financial performance and carbon emission disclosure in listed companies in Sri Lanka, with a focus on contributing to the understanding of sustainability reporting practices. The purpose of the research is to explore how financial indicators namely Earnings per Share, Return on Assets, and Total Assets are associated with companies' decisions to disclose their carbon footprint, highlighting the interconnectedness between financial success and environmental responsibility. By employing quantitative research design and statistical analyses, the study aims to provide theoretical insights and practical implications for corporate reporting practices and corporate decision making. The research philosophy of this study aligns with the positivist paradigm to ensure the attainment of unbiased and impartial findings. Employing an explanatory research design, the study utilizes data sourced from secondary sources pertaining to companies listed on the Colombo Stock Exchange. Descriptive and inferential statistics are used for analysis, with 588 observations included in the study sample. Ethical considerations play a significant role in guiding the research process, ensuring the confidentiality and appropriate handling of sensitive corporate financial data. Based on the findings of the correlation analysis of this study there is a positive relationship between financial performance indicators and carbon emission disclosure in Sri Lankan listed companies. Specifically, there is a significant relationship between Earnings per Share (EPS) and carbon emission disclosure, indicating that companies with higher EPS are more likely to disclose their carbon-related activities as a strategic move to enhance their financial image. However, the analysis shows no significant relationship between Return on Assets (ROA) and carbon emission disclosure, suggesting that asset utilization efficiency may not directly influence environmental reporting practices. Additionally, the study finds a significant relationship of Total Assets on carbon emission disclosure, indicating that the size of a company, as indicated by its Total Assets, plays a substantial role in determining the disclosure of carbon emission. Finally, this research contributes to a deeper awareness of the relationship between financial performance indicators and carbon emission disclosure in the context of Sri Lankan listed companies. The study underscores the importance of integrating environmental considerations into corporate strategies and reporting frameworks, advocating for a comprehensive approach to decision-making that prioritizes long-term environmental sustainability alongside financial success. The findings enhance understanding of the interplay between financial performance and sustainability reporting, paving the way for further analyses in the growing field of corporate sustainability.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-226239 |
| Date | January 2024 |
| Creators | Prasangika Maldeniya, Kalinga Dilhari, Mallawaarachchi, Inoka Dilhari |
| Publisher | Umeå universitet, Företagsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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