Shared value creation through integrated reporting in the Fast-Moving Consumer Goods (FMCG) Industry

: an analysis of the effect of Corporate Social Performance (CSP) on the Corporate Financial Performance (CFP) of multinational companies

Abstract

This thesis examines the effect of corporate social performance (CSP) on the corporate financial performance (CFP) of multinational companies (MNCs) in the fast-moving consumer goods (FMCG) industry. The analysis is conducted using data on a panel of 24 FMCG companies during the period 2005–2020. Nine regression models using Return on Equity (ROE), Return on Assets (ROA), and Net Margin as measures of CFP explore the CSP-CFP relationship. Moreover, this study investigates if integrated reporting has a moderating effect on the CSP CFP relationship insofar as MNCs that use integrated reporting will be more likely to improve their financial performance through shared value creation than MNCs that do not use integrated reporting. Basing its results on multiple linear regression analyses, this research finds that CSP (as measured by the Refinitiv ESG score) has a positive effect on CFP (as measured by ROA and ROE). These findings reveal that there are statistically significant (p < .001) relationships between ESG and ROE (unstandardized coefficient = .488) and ESG and ROA (unstandardized coefficient =.119).

Date of Award	21 Oct 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nathalie Prime (Supervisor)