Exploring Drivers of Sustainability Reporting: Evidence from the Largest Portuguese Companies
Exploring Drivers of Sustainability Reporting: Evidence from the Largest Portuguese Companies

Author(s): Vanda Roque, Sonia Monteiro, Marcia Faria
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Sustainability reporting; Drivers; Large companies
Summary/Abstract: This study examines the factors that influence the publication ofsustainability reports (SR), using a sample of 297 Portuguese companies, mainlyunlisted. To identify the determinants of SR, a binary logistic regression wasconducted with SR disclosure as the dependent variable. Explanatory variablesincluded sector, size, profitability (ROA), sales growth rate, and liquidity. Theresults indicate a positive and significant relationship between company sizeand SR disclosure: larger companies are 1.5 times more likely to disclose SR,supporting the legitimacy theory that larger companies use SR to legitimise theiractivities and respond to stakeholder pressure. This effect is especially strongfor companies in the industry and raw materials sectors. The other explanatoryvariables did not show a statistically significant effect on SR disclosure.

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