Exploring non financial disclosure and firm performance in the financial sector: is it a common path? A longitudinal analysis in Europe

In recent decades sustainability disclosure had increasingly become a common factor in corporate reporting, thus contributing to a growing standardization of companies’ reports. This trend has sparked both academic and practical in-depth debate, requiring the assessment of the relevant non-financial information, i.e. Environmental Social and Governance items on companies image, reputation, financial performance and value creation. The possibility of combining financial aims with social and environmental items enables companies to use sustainability as a source of competitive advantage and a key driver of innovation. This study investigates whether and on what terms, the disclosure of non-financial information has an influence on business performance. The empirical analysis focuses on a sample of companies belonging to the financial sector and listed on major European stock markets. This methodological choice stems from the fact that banks are positioned at the top in the ranking drawn up by Fortune 250 and Corporate Knights regards to sustainability. The data collection covers the period 2009-2013 and follows by authoritative secondary sources (ASSET4 Thomson Reuters and Bankscope Bureau van Dijk).