The Impact of Social and Environmental Disclosure on Financial Performance Further Evidence and Exploration from Libya

Abstract

The purpose of this paper is to explore whether social and environmental disclosure (SED) can affect financial performance (FP) of Libyan companies. The quantitative methods have been used to collect data relating to SED and financial performance in Libyan companies. This paper used longitudinal data analysis relating to levels of SED and financial performance in Libyan companies. In addition, content analysis and other quantitative methods were employed to analyze 110 annual reports of 40 firms. This paper revealed that total of SED has a positive impact on financial performance as a result of stakeholder pressure in Libyan companies.

Keywords: social and environmental disclosure (SED), financial performance (FP), return on equity (ROE), return on assets (ROA), revenues (REVs) and stakeholder theory