THE IMPACT OF SUSTAINABILITY REPORTING DISCLOSURE ON FIRM PERFORMANCE OF LISTED COMPANIES IN THE MARKET FOR ALTERNATIVE INVESTMENT – MAI

Abstract

This study aims to (1) examine the content and extent of sustainability reporting disclosure in three dimensions-environmental, social, and governance (ESG); and (2) analyze the relationship between ESG disclosure and the performance of listed companies in the Market for Alternative Investment (mai), a segment primarily comprising small and medium-sized enterprises (SMEs) where ESG reporting standards remain inconsistent.

          The sample includes 108 companies listed on mai with complete annual reports between 2022 and 2024. ESG disclosure levels were evaluated based on content analysis of annual reports using GRI-based criteria. Firm performance was measured using ROA, ROE, Net Profit Margin (NPM), and Earnings per Share (EPS). Control variables include firm size, firm age, and financial risk. Data were analyzed using descriptive statistics, Pearson’s correlation, and multiple regression analysis.

          The findings reveal that overall ESG disclosure is positively correlated with ROA (r = 0.421, p < 0.01), ROE (r = 0.395, p < 0.01), and Tobin’s Q (r = 0.362, p < 0.01). Governance disclosure (G) shows the strongest positive influence on ROE, while social disclosure (S) is negatively related to EPS. Environmental disclosure (E), however, demonstrates no significant relationship with any performance indicator. These results suggest that ESG disclosure-particularly in governance-enhances the credibility and financial performance of mai-listed companies. Therefore, tailored ESG disclosure guidelines suited to the scale and capacities of SMEs should be promoted to support long-term sustainable development.