Impact of Sustainability Disclosures on Financial Performance: A Natural Language Processing Perspective

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dc.contributor.authorLui, Gladie
dc.contributor.authorChia, Jeremy
dc.contributor.authorShum, Connie
dc.date.accessioned2023-12-26T18:36:30Z
dc.date.available2023-12-26T18:36:30Z
dc.date.issued2024-01-03
dc.identifier.doi10.24251/HICSS.2024.105
dc.identifier.isbn978-0-9981331-7-1
dc.identifier.other6388f97a-0c0a-47db-9a1c-2035fab693bf
dc.identifier.urihttps://hdl.handle.net/10125/106482
dc.language.isoeng
dc.relation.ispartofProceedings of the 57th Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectBig Data and Analytics: Pathways to Maturity
dc.subjectcorporate social responsibility
dc.subjectfinancial performance
dc.subjectnatural lanaguage processing
dc.subjectsustainability reports
dc.subjecttext mining
dc.titleImpact of Sustainability Disclosures on Financial Performance: A Natural Language Processing Perspective
dc.typeConference Paper
dc.type.dcmiText
dcterms.abstractSustainability reporting has emerged as an increasingly important topic since the trend linking financial and non-financial performance in the capital market attracted great attention in recent years. This study employs Natural Language Processing (NLP) to investigate three characteristics of sustainability reports including major component topics, readability, and sentiments of words used. Findings from the NLP analysis are regressed against corporate financial performance measures to examine the relation between sustainability report characteristics and firm performance. Results show that specific thematic topics of sustainability reports relate to different financial performance indicators. For instance, community-related disclosures have a positive relation with Return on Assets (ROA) and with Market Value (MV), methodology-related topics have a positive relation with MV, resource-related topics have a negative relation with MV, and governance and climate-related topics both have a positive relation with the Zmijewski score (ZJS), suggesting that these factors contribute to a firm’s financial viability.
dcterms.extent10 pages
prism.startingpage864

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