Role of Sustainable Accounting in Corporate Financial Performance-Impact of Environment Social and Governance (ESG) disclosures on profitability and market value in South West Khasi Hills District, Mawkyrwat

  • Unique Paper ID: 179526
  • Volume: 11
  • Issue: 12
  • PageNo: 6933-6937
  • Abstract:
  • Sustainable accounting has become a critical component of corporate financial performance as businesses face increasing pressure to integrate Environmental, Social and Governance (ESG) factors into their reporting frameworks. This study examines the impact of ESG disclosures on corporate profitability and market value, exploring how transparent sustainability reporting influences investor confidence, financial performance and competitive advantage. Using a combination of financial data analysis and case studies, the research highlights the corelation between ESG disclosure levels and key financial indicators such as return on assets (ROA), return on equity (ROE) and stock market performance. The findings suggest that companies with strong ESG reporting tend to experience higher profitability, lower risk exposure and enhanced investor trust, leading to better market valuation. However, challenges such as the lack of standardized reporting frameworks and the costs of ESG compliance remain significant barriers to widespread adoption. The study concludes that integrating sustainable accounting into corporate financial strategies not only enhances long-term economic sustainability but also positions businesses for growth in an increasingly responsible investment landscape.

Copyright & License

Copyright © 2025 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{179526,
        author = {Ms. Kresphulin Wahlang},
        title = {Role of Sustainable Accounting in Corporate Financial Performance-Impact of Environment Social and Governance (ESG) disclosures on profitability and market value in South West Khasi Hills District, Mawkyrwat},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {12},
        pages = {6933-6937},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=179526},
        abstract = {Sustainable accounting has become a critical
component of corporate financial performance as
businesses face increasing pressure to integrate
Environmental, Social and Governance (ESG) factors
into their reporting frameworks. This study examines
the impact of ESG disclosures on corporate profitability
and market value, exploring how transparent
sustainability reporting influences investor confidence,
financial performance and competitive advantage.
Using a combination of financial data analysis and case
studies, the research highlights the corelation between
ESG disclosure levels and key financial indicators such
as return on assets (ROA), return on equity (ROE) and
stock market performance. The findings suggest that
companies with strong ESG reporting tend to
experience higher profitability, lower risk exposure and
enhanced investor trust, leading to better market
valuation. However, challenges such as the lack of
standardized reporting frameworks and the costs of
ESG compliance remain significant barriers to
widespread adoption. The study concludes that
integrating sustainable accounting into corporate
financial strategies not only enhances long-term
economic sustainability but also positions businesses for
growth in an increasingly responsible investment
landscape.},
        keywords = {},
        month = {May},
        }

Related Articles