SDG Disclosure and Financial Performance: Evidence from Europe

Salah Kayed, Rasmi Meqbel

2025

Abstract

This study investigates the impact of Sustainable Development Goals (SDGs) disclosure on the financial performance of non-financial companies listed in European countries from 2019 to 2021. As companies increasingly face pressure to address social and environmental challenges, the extent of their engagement with SDGs has become a focal point. The research utilizes an SDG disclosure index based on the 17 SDGs as the primary independent variable. Financial performance is assessed using two key metrics: Return on Assets (ROA, and Tobin’s Q), analyzed through panel data regression models. The results reveal a significant and positive relationship between SDG disclosure and financial performance, consistent with Stakeholder Theory. This suggests that SDG initiatives enhance corporate reputation, reduce regulatory risks, and strengthen stakeholder relations, thereby contributing to superior financial outcomes. The findings provide valuable insights into the strategic importance of SDGs for firms and highlight the benefits of aligning business practices with sustainable development objectives.

Paper Citation

in Harvard Style

Kayed S. and Meqbel R. (2025). SDG Disclosure and Financial Performance: Evidence from Europe. In Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-748-1, SciTePress, pages 17-28. DOI: 10.5220/0013201400003956

in Bibtex Style

@conference{femib25,
author={Salah Kayed and Rasmi Meqbel},
title={SDG Disclosure and Financial Performance: Evidence from Europe},
booktitle={Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2025},
pages={17-28},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013201400003956},
isbn={978-989-758-748-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - SDG Disclosure and Financial Performance: Evidence from Europe
SN - 978-989-758-748-1
AU - Kayed S.
AU - Meqbel R.
PY - 2025
SP - 17
EP - 28
DO - 10.5220/0013201400003956
PB - SciTePress