Firm Performance and Non-financial Reporting in Bulgarian Companies
Firm performance is widely measured through the use of financial indicators, such as ROI, ROA or EVATM. This article aims at highlighting non financial performance indicators as disclosed by Bulgarian companies. We studied the financial statements and management reports of a sample of companies from different industries, in order to find, to which extent, non-financial information disclosure was available. Social responsibility, human capital and environment are key non-financial indicators studied and based on the Global Reporting Index (GRI) guidelines. We found, that the financial services industry tends to publish sufficient non-financial performance indicators, and has been spearheading the adoption of non-financial information disclosure guidelines. Companies listed on the Bulgarian stock exchange, tend to report more non-financial information than non-listed companies. Large-scale firms disclose more non-financial information than SMEs. Finally, no relationship between non-financial reporting and firm performance was established, though the firms studied showed positive financial indicators. Non-financial reporting is used for communication purposes rather than for perspectives on performance valuation.(original abstract)
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