Non-financial Performance Disclosure and Company Performance: Australian Evidence
The objective of this paper is to examine the relationship between company financial performance, company characteristics and non-financial performance disclosure (NFPD) in terms of quantity and quality. This paper uses a NFPD index that covers six perspectives: three perspectives of the Balanced Scorecard (BSC) and three perspectives of Environmental, Social and Governance (ESG) disclosure. The sample data used in this study is 30 Australian listed companies in 2014. The results show that in terms of quantity, there is a significant relationship between company financial performance (Return on Equity-ROE and Earning per Share-EPS), company type, company age, auditing firm and non-financial performance disclosure while Return on Asset (ROA) and size of company shown no significance. Meanwhile, in terms of quality, only ROE and company age were significantly related to non-financial performance disclosure. Overall, by using the six perspectives of non-financial performance disclosure in the 30 companies in Australia, this study has contributed new understandings to the main corporate social disclosure studies focused on non-financial performance disclosure, which should motivate companies to produce and disclose annual and sustainability reports that are more comprehensive and highly credible.
Keywords: Non-financial performance disclosure; Balanced Scorecard; Environmental, Social and Governance
 Adams, C. A., Hill, W.-Y., & Roberts, C. B. (1998). Corporate social reporting practices in Western Europe: legitimating corporate behaviour? The British accounting review, 30(1), 1-21.
 Alikhani, R., & Maranjory, M. (2013). An Investigation on the Relationship between social and environmental Information disclosure leveland firms Performance in Iran. International Research Journal of Applied and Basic Sciences, 5(1).
 Alrazi, B., De Villiers, C., & Van Staden, C. J. (2015). A comprehensive literature review on, and the construction of a framework for, environmental legitimacy, accountability and proactivity. Journal of Cleaner Production, 102, 44-57.
 Aras, G., Aybars, A., & Kutlu, O. (2010). Managing corporate performance: Investigating the relationship between corporate social responsibility and financial performance in emerging markets. International Journal of productivity and Performance management, 59(3), 229-254.
 Balatbat, M. (2012). ESG Scores and its influence on firm performance: Australian Evidence. The University of New South Wales. Working Paper.
 Barakat, F. S., Pérez, M. V. L., & Ariza, L. R. (2015). Corporate social responsibility disclosure (CSRD) determinants of listed companies in Palestine (PXE) and Jordan (ASE). Review of Managerial Science, 9(4), 681-702.
 Belkaoui, A., & Karpik, P. G. (1989). Determinants of the corporate decision to disclose social information. Accounting, Auditing & Accountability Journal, 2(1).
 Bhaduri, S. N., & Selarka, E. (2016). Impact of Corporate Governance on Corporate Social Responsibility in India—Empirical Analysis Corporate Governance and Corporate Social Responsibility of Indian Companies (pp. 87-113): Springer.
 Branco, M. C., & Rodrigues, L. L. (2008). Factors influencing social responsibility disclosure by Portuguese companies. Journal of Business Ethics, 83(4), 685-701.
 Brooks, C., & Oikonomou, I. (2017). Forthcoming, British Accounting Review 2018.
 Carney, T. F. (1972). Content analysis: A technique for systematic inference from communications: University of Manitoba Press.
 Cerf, A. R. (1961). Corporate reporting and investment decisions: Public Accounting Research Program, Institute of Business and Economic Research, University of California.
 Chan, M. C., Watson, J., & Woodliff, D. (2014). Corporate governance quality and CSR disclosures. Journal of Business Ethics, 125(1), 59-73.
 Cho, H., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability, and market value. Strategic Management Journal, 26(6), 555-575. doi:10.1002/smj.461
 Cormier, D., Magnan, M., & Van Velthoven, B. (2005). Environmental disclosure quality in large German companies: economic incentives, public pressures or institutional conditions? European accounting review, 14(1), 3-39.
 Cowen, S. S., Ferreri, L. B., & Parker, L. D. (1987). The impact of corporate characteristics on social responsibility disclosure: A typology and frequency-based analysis. Accounting, Organizations and Society, 12(2), 111-122.
 Cross, T.-A., & Djadikerta, H. G. (2004). An examination of the quality of voluntary environmental disclosures in New Zealand and Australia: a research framework. Paper presented at the 15th International Congress on Social and Environmental Accounting Research, 3rd Australasian CSEAR Conference, Sydney, April 15-17.
 D’Amico, E., Coluccia, D., Fontana, S., & Solimene, S. (2016). Factors influencing corporate environmental disclosure. Business Strategy and the Environment, 25(3), 178-192.
 Deegan, C., & Gordon, B. (1996). A study of the environmental disclosure practices of Australian corporations. Accounting and business research, 26(3), 187-199.
 Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal, 39(4), 949-969.
 Dellios, E. (2012). Sustainability reporting in Australia. Keeping Good Companies, 64(9), 521.
 Dias, A., Rodrigues, L. L., & Craig, R. (2016). Global financial crisis and corporate social responsibility disclosure. Social Responsibility Journal, 12(4), 654-671.
 Dias, A., Rodrigues, L. L., & Craig, R. (2017). Corporate governance effects on social responsibility disclosures. Australasian Accounting Business & Finance Journal, 11(2).
 Dragomir, V. D. (2010). Environmentally sensitive disclosures and financial performance in a European setting. Journal of Accounting & Organizational Change, 6(3), 359-388.
 Engert, S., & Baumgartner, R. J. (2016). Corporate sustainability strategy–bridging the gap between formulation and implementation. Journal of Cleaner Production, 113, 822-834.
 Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law & Economics, 26(2), 301-325.
 Fatma, M., & Rahman, Z. (2014). Building a corporate identity using corporate social responsibility: a website based study of Indian banks. Social Responsibility Journal, 10(4), 591-601.
 Fernandez-Feijoo, B., Romero, S., & Ruiz, S. (2014a). Commitment to corporate social responsibility measured through global reporting initiative reporting: Factors affecting the behavior of companies. Journal of Cleaner Production, 81, 244-254.
 Fernandez-Feijoo, B., Romero, S., & Ruiz, S. (2014b). Effect of stakeholders’ pressure on transparency of sustainability reports within the GRI framework. Journal of Business Ethics, 122(1), 53-63.
 Ferrell, A., Liang, H., & Renneboog, L. (2016). Socially responsible firms. Journal of financial economics, 122(3), 585-606.
 Frost, G., Jones, S., Loftus, J., & Laan, S. (2005). A survey of sustainability reporting practices of Australian reporting entities. Australian Accounting Review, 15(35), 89-96.
 Fuisz-Kehrbach, S.-K. (2015). A three-dimensional framework to explore corporate sustainability activities in the mining industry: Current status and challenges ahead. Resources Policy, 46, 101-115.
 Glick, W. H., Washburn, N. T., & Miller, C. C. (2005). The myth of firm performance. Paper presented at the Proceedings of the Annual Meeting of American Academy of Management, Honolulu, Hawaii.
 Global Reporting Initiative. (2012). About GRI. Retrieved from
 Gray, R., Javad, M., Power, D. M., & Sinclair, C. D. (2001). Social and environmental disclosure and corporate characteristics: A research note and extension. Journal of business finance & accounting, 28(3−4), 327-356.
 Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47-77.
 Hackston, D., & Milne, M. J. (1996). Some determinants of social and environmental disclosures in New Zealand companies. Accounting, Auditing & Accountability Journal, 9(1), 77-108.
 Higgins, C., Milne, M. J., & Van Gramberg, B. (2015). The uptake of sustainability reporting in Australia. Journal of Business Ethics, 129(2), 445-468.
 Holsti, O. (2012). R.(1969). Content Analysis for the Social Sciences and Humanities. Reading: Addison Wesley Publishing Company.
 Humphrey, E. J., Lee, D., & Shen, Y. (2012). The independent effects of environmental, social and governance initiatives on the performance of UK firms. Australian Journal of Management, 37(2), 135- 151. doi:10.1177/031289621141008
 Jagongo, A., & Makori, D. (2013). Environmental Accounting and Firm Profitability: An Empirical Analysis of Selected Firms Listed in Bombay Stock Exchange, India.
 Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
 Kansal, M., Joshi, M., & Batra, G. S. (2014). Determinants of corporate social responsibility disclosures: Evidence from India. Advances in Accounting, 30(1), 217-229.
 Kaplan, R., & Norton, D. (1992). The Balanced Scorecad: Measures that drive performance. Harvard Business Review, 70(1), 71-79.
 Kerr, J., Rouse, P., & de Villiers, C. (2015). Sustainability reporting integrated into management control systems. Pacific Accounting Review, 27(2), 189-207.
 King, A., Bartels, W., McKenzie, M., & Austin, E. (2015). Currents of change: the KPMG survey of corporate responsibility reporting 2015. Netherlands: KPMG.
 Kocmanová, A., & Dočekalová, M. (2012). Construction of the economic indicators of performance in relation to environmental, social and corporate governance (ESG) factors. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 60(4), 1-11.
 KPMG. (2011). KPMG International Survey of Corporate Responsibility Reporting 2011. Retrieved from
 Krippendorff, K. (2012). Content analysis: An introduction to its methodology: Sage.
 Kwanbo, M. L. (2011). An Assessment of the Effectiveness of Social Disclosure on Earnings per Share in Nigerian Public Corporations. World Journal of Social Sciences, 1(1), 86-106.
 Lima Crisóstomo, V., de Souza Freire, F., & Cortes de Vasconcellos, F. (2011). Corporate social responsibility, firm value and financial performance in Brazil. Social Responsibility Journal, 7(2), 295- 309.
 Lipe, M., & Salterio, S. (2000). The Balanced Scorecard: Judgmental Effects of Common and Unique Performance Measures. The Accounting Review, 75(3), 283-298.
 Liu, X., & Anbumozhi, V. (2009). Determinant factors of corporate environmental information disclosure: an empirical study of Chinese listed companies. Journal of Cleaner Production, 17(6), 593-600.
 Lokuwaduge, C. S. D. S., & Heenetigala, K. (2017). Integrating environmental, social and governance (ESG) disclosure for a sustainable development: an Australian study. Business Strategy and the Environment, 26(4), 438-450.
 Maas, K., Schaltegger, S., & Crutzen, N. (2016). Integrating corporate sustainability assessment, management accounting, control, and reporting. Journal of Cleaner Production, 136, 237-248.
 Malik, M. (2015). Value-enhancing capabilities of CSR: A brief review of contemporary literature. Journal of Business Ethics, 127(2), 419-438.
 McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 31(4), 854-872.
 Meng, X., Zeng, S., Shi, J. J., Qi, G., & Zhang, Z. (2014). The relationship between corporate environmental performance and environmental disclosure: An empirical study in China. Journal of environmental management, 145, 357-367.
 Müller, M. A., Riedl, E. J., & Sellhorn, T. (2015). Recognition versus disclosure of fair values. The Accounting Review, 90(6), 2411-2447.
 Muttakin, M. B., & Khan, A. (2014). Determinants of corporate social disclosure: Empirical evidence from Bangladesh. Advances in Accounting, 30(1), 168-175.
 Newson, M., & Deegan, C. (2002). Global expectations and their association with corporate social disclosure practices in Australia, Singapore, and South Korea. The International Journal of Accounting, 37(2), 183-213.
 Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta- analysis. Organization studies, 24(3), 403-441.
 Parsa, S., & Deng, L. X. (2008). Capital markets’ reactions to social information announcements. International Journal of Accounting and Finance, 1(1), 107-120.
 Plumlee, M., Brown, D., Hayes, R. M., & Marshall, R. S. (2015). Voluntary environmental disclosure quality and firm value: Further evidence. Journal of Accounting and Public policy, 34(4), 336-361.
 Raar, J. (2002). Environmental initiatives: towards triple-bottom-line reporting. Corporate Communications: An International Journal, 7(3), 169-183.
 Roberts, R. W. (1992). Determinants of corporate social responsibility disclosure: An application of stakeholder theory. Accounting, Organizations and Society, 17(6), 595-612.
 Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341-350.
 Sánchez, R. G., Bolívar, M. P. R., & Hernández, A. M. L. (2017). Corporate and managerial characteristics as drivers of social responsibility disclosure by state-owned enterprises. Review of Managerial Science, 11(3), 633-659.
 Self, D. R., Self, T., Matuszek, T., & Schraeder, M. (2015). Improving organizational alignment by enhancing strategic thinking. Development and Learning in Organizations: An International Journal, 29(1), 11-14.
 Song, H., Zhao, C., & Zeng, J. (2017). Can environmental management improve financial performance: An empirical study of A-shares listed companies in China. Journal of Cleaner Production, 141, 1051-1056.
 Spicer, B. H. (1978). Investors, corporate social performance and information disclosure: An empirical study. Accounting review, 94-111.
 Svanberg, J., & Öhman, P. (2015). Auditors’ identification with their clients: Effects on audit quality. The British accounting review, 47(4), 395-408.
 Tschopp, D., & Huefner, R. J. (2015). Comparing the Evolution of CSR Reporting to that of Financial Reporting. Journal of Business Ethics, 127(3), 565-577.
 Vintró, C., Sanmiquel, L., & Freijo, M. (2014). Environmental sustainability in the mining sector: evidence from Catalan companies. Journal of Cleaner Production, 84, 155-163.
 Wanderley, L. S. O., Lucian, R., Farache, F., & de Sousa Filho, J. M. (2008). CSR information disclosure on the web: a context-based approach analyzing the influence of country of origin and industry sector. Journal of Business Ethics, 82(2), 369-378.
 Wang, Z., Hsieh, T. S., & Sarkis, J. (2018). CSR Performance and the Readability of CSR Reports: Too Good to be True? Corporate Social Responsibility and Environmental Management, 25(1), 66-79.
 Watts, R. L., & Zimmerman, J. L. (1990). Positive accounting theory: a ten-year perspective. Accounting review, 131-156.