Dob e, C is ian; Baba, Camelia Mi ela; An on, Ca men; Palade, Alexand a; Aldea,
Denisa
A icle
Sus ainabili y epo ing and en i onmen al esponsibili y:
The case o Romania
Adminis a i e Sciences
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MDPI – Mul idisciplina y Digi al Publishing Ins i u e, Basel
Sugges ed Ci a ion: Dob e, C is ian; Baba, Camelia Mi ela; An on, Ca men; Palade, Alexand a; Aldea,
Denisa (2025) : Sus ainabili y epo ing and en i onmen al esponsibili y: The case o Romania,
Adminis a i e Sciences, ISSN 2076-3387, MDPI, Basel, Vol. 15, Iss. 3, pp. 1-31,
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Ci a ion: Dob e, C., Baba, C. M.,
An on, C. E., Zam i ache, A., & Aldea,
D. (2025). Sus ainabili y Repo ing
and En i onmen al Responsibili y:
The Case o Romania. Adminis a i e
Sciences,15(3), 103. h ps://doi.o g/
10.3390/admsci15030103
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A icle
Sus ainabili y Repo ing and En i onmen al Responsibili y:
The Case o Romania
C is ian Dob e 1, Camelia Mi ela Baba 2, Ca men Elena An on 2, Alexand a Zam i ache 3and Denisa Aldea 4,*
1Depa men o Econome ics and Ope a ions Resea ch, Tilbu g School o Economics and Managemen ,
5037 Tilbu g, The Ne he lands; c.dob e@ ilbu guni e si y.edu
2
Depa men o Finance, Accoun ing and Economic Theo y, T ansil ania Uni e si y o B a
s
,
o , 500036 B aso ,
Romania; mi ela.baba@uni b . o (C.M.B.); ca men.an on@uni b . o (C.E.A.)
3Depa men o Managemen and Economic In o ma ics, T ansil ania Uni e si y o B as
,o , 500036 B as
,o ,
Romania; alexand a.zam i ache@uni b . o
4In e disciplina y Doc o al School, Facul y o Economic Sciences and Business Adminis a ion, T ansil ania
Uni e si y o B as
,o , 500036 B aso , Romania
*Co espondence: denisa.chi u@uni b . o
Abs ac : A de ailed analysis o non- inancial and sus ainabili y epo ing may indica e
companies’ a en ion o and esponsibili y ega ding en i onmen al, social, and economic
aspec s. This a icle in es iga es he co ela ion be ween en i onmen al pe o mance as
a non- inancial me ic and inancial pe o mance. Simul aneously, i iden i ies he ca e-
go ies o en i onmen al in o ma ion p o ided by companies and he implici esponsibili y
wi h which hey add ess en i onmen al p o ec ion issues. Da a we e collec ed om he
sus ainabili y epo s o 668 companies in Romania o he 2019–2021 pe iod. The s udy
uses, on he one hand, a diagnos ic analysis me hod ( he g id me hod) o de e mine he
en i onmen al pe o mance (en i onmen al sco e) o he companies. On he o he hand, i
uses a linea eg ession model o es he co ela ion be ween en i onmen al pe o mance
and inancial pe o mance (including a ole ance analysis o iden i y mul icollinea i y,
o wa d a iable selec ion, backwa d a iable selec ion, and he Du bin-Wa son es ). The
s udy’s indings unde sco e a posi i e co ela ion be ween en i onmen al non- inancial
pe o mance and inancial pe o mance. In pa icula , high u no e and ad anced age o
he company a e associa ed wi h high non- inancial pe o mance.
Keywo ds: sus ainabili y epo ing; inancial pe o mance; ESG; en i onmen al esponsibili y;
en i onmen al pe o mance
1. In oduc ion
The elease o non- inancial in o ma ion ega ding he policies, esul s, and isks
ela ed o en i onmen al, social, and go e nance (ESG) aspec s ha complemen annual
inancial epo s has become a necessi y o all companies aiming o achie e posi i e
pe o mance indica o s. Thus, no only he quan i y o in o ma ion ma e s, bu also
i s quali y (Ioannou & Se a eim,2019), esul ing om he anspa ency o disclosu es o
s akeholde s. Enhancing c edibili y in a company’s business model is suppo ed by he
communica ion o in o ma ion ega ding in e es in he company’s en i onmen al impac ,
as well as an analysis o he in luence o ex e nal ac o s on he o ganiza ion wi hin he
alue c ea ion p ocess.
The e mus be connec i i y be ween sus ainabili y in o ma ion and pe o mance
indica o s ha mee s s akeholde s’ equi emen s while ensu ing high anspa ency in
Adm. Sci. 2025,15, 103 h ps://doi.o g/10.3390/admsci15030103
Adm. Sci. 2025,15, 103 2 o 31
communica ions (IFRS Sus ainabili y,2024). Companies a e in e es ed in epo ing sus ain-
abili y pe o mance and choosing mo e sus ainable business models, conside ing all he
isks and oppo uni ies hey p esen . Taking in o accoun he possibili y o easie access
o inancing c edi s, knowing he equi emen s o pa ne s h oughou he alue chain,
secu ing he long- e m u u e o he business by a ac ing new cus ome s and in es o s,
and he ac i e in ol emen o s akeholde s, i can be said ha p oac i e accep ance o
sus ainabili y b ings long- e m bene i s o any o ganiza ion (Accoun ancy Eu ope,2024).
Gi en ha Eu oba ome e su eys conduc ed in Decembe 2019 show ha 94% o ci i-
zens om all membe s a es o he Eu opean Union pay special a en ion o en i onmen al
p o ec ion, and in Romania, he su ey (conduc ed by in e iewing 1081 people) e ealed
ha 87% o Romanians ag ee ha en i onmen al issues a e e y impo an , all o ganiza-
ions a e in e es ed in achie ing inancial pe o mance in line wi h ul illing sus ainabili y
equi emen s (Eu opean Commission,2023c).
En i onmen al p o ec ion aspec s, as an impo an pilla o ESG (En i onmen al, So-
cial, and Go e nance) issues, ha e come o he a en ion o companies as a ac o in luencing
inancial pe o mance. Acco ding o Xue, he complex ela ionship be ween ou come-based
en i onmen al pe o mance has implica ions o he adop ion o manage ial decisions in
s a egy and isk managemen , as well as in he de elopmen o en i onmen al egula ion
policies (Xue e al.,2020).
The company’s en i onmen al pe o mance conside s he e o s i unde akes o he
e icien and a ional use o esou ces, educing he impac o i s ac i i ies on en i onmen al
objec i es, and enhancing he quali y o en i onmen al managemen ac ions whe e he
company ope a es. A s udy conduc ed by I ada e ealed ha en i onmen al pe o mance
has a signi ican posi i e e ec on inancial pe o mance, esul ing in o ganiza ions being
mo e ocused on en i onmen al issues o s eng hen hei company’s p o i abili y (I ada
e al.,2021). Simila ly, a s udy by Hanjani and Kusumadewi con i med he exis ence o
a posi i e ela ionship be ween en i onmen al pe o mance and inancial pe o mance,
as well as be ween he ac ions o he Audi Commi ee, i m cha ac e is ics, ISO 14001
(ISO,2021) Ce i ica ion (In e na ional s anda d o en i onmen al managemen sys ems
-EMS), and en i onmen al pe o mance (Hanjani & Kusumadewi,2023). Some s udies ha e
analyzed inancial pe o mance based on en i onmen al issues (such as he e ec s o was e
emissions, g eenhouse gas educ ion), wi h esul s a ying acco ding o he p e e ences o
s akeholde s. Thus, sha eholde s and in es o s ocus on a company’s long- e m inancial
pe o mance, while consume s and business pa ne s a e no in e es ed in sho - e m en i-
onmen al managemen (Iwa a & Okada,2011). Addi ionally, s udies on he ela ionship
be ween elemen s o co po a e go e nance and inancial and en i onmen al pe o mance
sugges ha hese ac o s ha e a mode a ing e ec on he ela ionship be ween inancial
and en i onmen al pe o mance (Nguyen e al.,2021). Empi ically, mos s udies ha e
ocused on he e ec s o a ious a iables ela ed o ESG issues, ei he aken oge he o
combined in pai s, on a company’s inancial pe o mance. These s udies ha e di e en ly
examined he ela ionship be ween sus ainabili y and inancial pe o mance, mos o en
conside ing inancial pe o mance as dependen a iable, exp essed h ough se e al p o -
i abili y indica o s. Howe e , he e a e also s udies ha iew en i onmen al pe o mance
as a dependen a iable in ela ion o p edic o s cha ac e izing he go e nance s uc u e.
Based on he exis ing in o ma ion in he specialized li e a u e, as b ie ly p esen ed abo e,
he au ho s o his pape ha e iden i ied a knowledge gap. Using diagnos ic analysis
( he e alua ion g id me hod) o de e mine he non- inancial (en i onmen al) pe o mance
sco e b ings added alue and o iginali y o ou esea ch. En i onmen al pe o mance
(en i onmen al sco e) is less commonly used in he specialized li e a u e as a dependen
Adm. Sci. 2025,15, 103 3 o 31
a iable, and he analysis o he co ela ion be ween i and inancial ac o s was less widely
add essed du ing he pandemic pe iod (2019–2021).
The p esen s udy e ec i ely add esses he knowledge gap in he exis ing li e a u e
by o e ing comp ehensi e insigh s in o bo h inancial and non- inancial indica o s ha
cla i y he ela ionship be ween inancial and non- inancial (en i onmen al) pe o mance.
Sus ainabili y and en i onmen al esponsibili y epo ing has become a c ucial opic
in he con ex o in e na ional egula ions and in es o equi emen s. Eu opean di ec i es,
such as Di ec i e 2014/95/EU (Eu opean Union EUR-Lex,2021) on non- inancial epo ing
(NFRD) and EU Regula ion 2022/2464 on co po a e sus ainabili y epo ing (CSRD), ha e
p omp ed companies in Romania o implemen anspa ency p ac ices when epo ing
hei en i onmen al impac (Mihai & Aleca,2023). Acco ding o a s udy conduc ed by
Mihai and Aleca, while he indus ial sec o is mo e sensi i e o epo ing equi emen s
and aces g ea e challenges (Sie a-Ga cia e al.,2018), esea ch gene ally indica es ha
he indus ial sec o does no signi ican ly in luence co po a e sus ainabili y policies. This
sugges s ha sus ainabili y conce ns a e equally impo an o all companies. Aligning
a sus ainabili y s a egy wi h a global business s a egy and inco po a ing sus ainabili y
(non- inancial) epo ing equi emen s a e key conce ns o op companies in Romania
(Pe escu e al.,2020). The academic li e a u e p o ides di e se pe spec i es on sus ain-
abili y epo ing implemen a ion (Pasko e al.,2021). On one hand, some au ho s a gue
ha ins i u ional p essu es and legisla i e egula ions a e he p ima y d i e s o adop ing
hese p ac ices (Ma inescu,2020b), while o he s con end ha in e nal mo i a ions, such
as business epu a ion ad an ages and access o sus ainable inancing, play a signi ican
ole (Piciu,2019). Go e nmen legisla ion, in es o and s akeholde expec a ions, and
olun a y in e na ional sus ainabili y epo ing ini ia i es ha e led o an inc eased demand
o sus ainabili y- ela ed in o ma ion (Fleacăe al.,2023). The impo ance o sus ainabili y
epo ing amewo ks is also e lec ed in he s anda dized epo ing o gene al sus ain-
abili y aspec s ela ed o business models, pa icula ly om he pe spec i e o he GRI
epo ing amewo k (Bunge e al.,2024). In Romania, he mos equen ly used ame-
wo ks a e he GRI (Global Repo ing Ini ia i e) and EU s anda ds (EFRAG,2023). By aking
p oac i e measu es, companies can u n ESG compliance om a egula o y bu den in o a
s a egic ad an age in e ms o enhancing sus ainabili y. S udies show an inc easing ESG
commi men among la ge Romanian companies, bu he e a e s ill signi ican a eas ha
equi e imp o emen (Dănilă& Nancu,2023).
This s udy examines he ela ionship be ween en i onmen al pe o mance and inan-
cial pe o mance using da a om inancial and sus ainabili y epo s o companies lis ed on
he Bucha es S ock Exchange (BVB) and he lis e i me. o websi e. The analyzed pe iod co -
e s 2019 o 2021. Mul iple eg ession analysis was used as a s a is ical me hod o e alua e
he ela ionship be ween en i onmen al pe o mance and inancial pe o mance indica o s,
such as Re u n on Asse s (ROA), Re u n on Equi y (ROE), Sol ency Ra io (SOLV), Asse
Tu no e Ra io (ATR), and Financial Le e age (DER), among o he s.
The pu pose o he p esen pape is o calcula e he en i onmen al esponsibili y and
pe o mance o he companies included in he sample and examine he co ela ion be ween
inancial and non- inancial pe o mance (en i onmen al pe o mance).
In addi ion, he pape aims o answe esea ch ques ions ela ed o he ca ego ies
o in o ma ion included in sus ainabili y epo s, he pe o mance indica o s ele an o
en i onmen al pe o mance, and he link be ween en i onmen al policies and s a egies
and en i onmen al pe o mance.
Addi ionally, he e is inc eased in e es among he in es iga ed i ms o in es in
e ooling and mode niza ion o achie e en i onmen al objec i es. The e is also g owing
conce n ega ding he c ea ion o en i onmen al s a egies. The p esen s udy’s indings
Adm. Sci. 2025,15, 103 4 o 31
a e ele an o manage s in Romania and beyond, p o iding hem wi h he necessa y
amewo k o de elop s a egic plans o sus ainable en i onmen al s a egies.
This pape includes i e sec ions: Sec ion 2p esen s a li e a u e e iew and some
p elimina y da a; Sec ion 3p esen s he me hods used, along wi h he esea ch me hod-
ology, while Sec ion 4highligh s he main esul s; Sec ion 5consis s o discussions and
conclusions. The inal pa ag aph p esen s he limi a ions and u he esea ch.
2. Li e a u e Re iew
2.1. The Regula o y F amewo k o Sus ainabili y Repo ing
Sus ainabili y epo ing has become inc easingly impo an o companies wo ld-
wide, d i en by g owing p essu e o balance inancial pe o mance wi h en i onmen al
esponsibili y. Romania, as a membe o he Eu opean Union, aces bo h challenges and
oppo uni ies in e ms o in eg a ing sus ainabili y in o i s co po a e cul u e. This a icle
examines sus ainabili y epo ing in Romania, ocusing on en i onmen al pe o mance,
he link be ween en i onmen al and inancial pe o mance, and he ole o he Eu opean
Union in guiding hese p ac ices. En i onmen al pe o mance, a key elemen o sus-
ainabili y epo ing, assesses how companies manage hei impac on he en i onmen ,
including esou ce use (ene gy, wa e , aw ma e ials), was e, and emissions. Companies
ha demons a e s ong en i onmen al pe o mance can enhance hei epu a ion and
a ac key s akeholde s, such as consume s, egula o s, and in es o s (Kha i & Kjæ land,
2023;Papou si & Sodhi,2020;Nug ahani & A an o,2022).
En i onmen al Social Go e nance (ESG) has eme ged as a global end in ecen
yea s, and he ESG amewo k has ecen ly unde gone inno a i e upda es in e ms o
bo h egula ion and sus ainabili y s anda ds. In Romania, he p esen a ion o non- inancial
in o ma ion was manda ed wi h he ansposi ion o Di ec i e 2014/95/EU, which in o-
duced he Non-Financial Repo ing Rules (NFRD) (Di ec i e 2014/95, 2023) in o na ional
legisla ion (Minis y o Public Finance,2016,2018). Thus, all companies wi h a leas
500 employees on hei mos ecen balance shee , on an indi idual o consolida ed le el
( ega dless o whe he he en i y is public o p i a e), a e equi ed o include signi ican
ESG in o ma ion in hei annual epo . This ca ego y also includes EU companies wi h
b anches in Romania.
I has been obse ed ha many in es o s and o he s akeholde s ha e encoun e ed
di icul ies in compa ing ESG in o ma ion among companies. In Ap il 2021, he Eu opean
Commission adop ed a egula ion amending he NFRD, namely, he Co po a e Sus ain-
abili y Repo ing Di ec i e (CSRD-2022/2464/EU) (Eu opean Union EUR-Lex,2023). This
need also a ose om sus ainable inance ini ia i es (SFRD—Sus ainable Finance Disclo-
su e Regula ion) (Eu opean Commission,2023a) and Taxonomy Regula ion (Eu opean
Commission,2023b).
EU Taxonomy se es as a classi ica ion amewo k designed o assis companies and
in es o s in pinpoin ing en i onmen ally sus ainable economic ac i i ies, he eby acili a -
ing in o med decisions when i comes o sus ainable in es men s. Sus ainable economic
ac i i ies a e hose ha c ea e alue while suppo ing he EU’s clima e and en i onmen al
goals. The CSRD seeks o b oaden epo ing obliga ions o encompass majo co po a ions
and hose aded on egula ed inancial ma ke s, in oduce mo e comp ehensi e epo ing
equi emen s, and manda e sus ainabili y audi s.
Ou analysis o he egula o y amewo k also ou lines he answe o he i s esea ch
ques ion: “Wha in o ma ion do publicly lis ed companies include in hei sus ainabili y
epo s?”
ESG e e s o a se o en i onmen al, social, and go e nance ac o s ha o ganiza ions
ack o e alua e hei e ec i eness and in luence on sus ainabili y. These ac o s can
Adm. Sci. 2025,15, 103 5 o 31
exe in luence om wi hin, impac ing all a eas ela ed o ESG, and om he ou side
(en i onmen al, social, go e nance aspec s a ec ing he en i y’s ac i i y). ESG issues a e a
componen o an en i y’s ope a ion and business model. The NFRD (Di ec i e 2014/95,
2023) equi es companies o p esen in o ma ion ha should include de ails abou he
en i y’s business model, a summa y o he mos ele an policies and ou comes ega ding
ESG aspec s, iden i ica ion o key isks and measu es o mi iga e hei impac , he mos
ele an key pe o mance indica o s (KPIs), as well as aspec s ega ding he di e si y o
managemen bodies, hei s uc u e and size, e c. (Bucha es S ock Exchange,2022a,2022b).
The e a e ce ain assessmen c i e ia h ough which he ole o an ac i i y in e ms o
achie ing pe o mance objec i es ela ed o ESG can be es ablished, known as Technical
Sc eening C i e ia (TSC) (o pe o mance h esholds). Acco ding o he Taxonomy Reg-
ula ion (Regula ion (EU) 2020/852), companies mus p o ide in o ma ion on wo KPIs:
u no e pe cen age de i ed om en i onmen ally sus ainable p oduc s o se ices, and
he pe cen age o capi al and ope a ing expendi u es aimed a acqui ing asse s o ope a-
ional ac i i ies ela ed o he en i onmen . As s a ed by he same egula ion, o ganiza ions
ha e he op ion o epo h ough a s andalone en i onmen al epo o an in eg a ed
epo , whe e inancial pe o mance is connec ed wi h sus ainabili y pe o mance. A sus-
ainabili y epo p epa ed in line wi h sus ainabili y s anda ds (Global Repo ing Ini ia i e
(GRI) o Sus ainabili y Accoun ing S anda ds Boa d (SASB)) gua an ees he consis ency
and compa abili y o in o ma ion communica ed o s akeholde s.
2.2. P esen and Pe spec i es on Sus ainabili y Repo ing S anda ds
Acco ding o a s udy conduc ed by IFAC oge he wi h AICPA and CIMA (“The
S a e o Play: Sus ainabili y Disclosu e and Assu ance 2019–2022, T ends and Analysis”;
In e na ional Fede a ion o Accoun an s,2024), sus ainabili y epo ing and assu ance
p ac ices a e imp o ing, and companies a e inc easingly de eloping hei sus ainabili y
in o ma ion o s akeholde s. The s udy, which included Romania along wi h six o he
Eu opean coun ies, e ealed ha in he 2019–2021 pe iod, ESG in o ma ion epo ing in
Romania ollowed he global end. Thus, in 2021, app oxima ely 88% o en i ies epo ed
ESG in o ma ion, bu only 18% o hem had hei epo s audi ed. In e ms o epo
layou , he s udy e ealed ha 40% o hem we e sus ainabili y epo s, while only 4%
we e in eg a ed epo s, s ill e lec ing he ha monious use o GRI and SASB s anda ds in
abou 83% o companies. Howe e , ela i e o o he Eu opean coun ies, Romania needs o
accele a e he implemen a ion o sus ainabili y s anda ds and ake a mo e se ious app oach
o ESG in o ma ion disclosu es.
Despi e p og ess in sus ainabili y epo ing, many Eu opean companies a e no p e-
pa ed o add essing sus ainabili y acco ding o he CSRD, as applicable om 2024. Ac-
co ding o a s udy by Le eb e Sa u (Con inui y Cen al.com,2023) in ol ing 744 Eu-
opean companies o a ious sizes and sec o s, 40% o Eu opean companies a e no
amilia wi h ESG c i e ia, 43% ha e no es ablished any benchma ks o ESG c i e ia,
and 45% ha e no iden i ied measu es o implemen ing he equi emen s o he CSRD
(Con inui y Cen al.com,2023).
Howe e , companies in he au omo i e, chemical, and
manu ac u ing indus ies a e aking se ious ac ions o implemen policies aimed a iden i-
ying isks and educing impac s on ESG ac o s. Con e sely, he se ices and consul ing
sec o s a e less commi ed o applying he CSRD. Awa eness and unde s anding o he
sus ainabili y epo ing amewo k equi emen s a e c ucial o c ea ing alue o all s ake-
holde s and achie ing a company’s long- e m iabili y. Repo ing pu suan o he Eu opean
Sus ainabili y Repo ing S anda ds (ESRS) includes equi emen s such as he compa abili y
o epo ed sus ainabili y in o ma ion, applying he double ma e iali y p inciple epo ing
Adm. Sci. 2025,15, 103 6 o 31
on he alue chain, and issuing an in eg a ed annual epo (combining ESG in o ma ion
wi h inancial epo ing) (Wood,2023).
The sus ainable dimension o a business in ol es con inuous moni o ing o ESG
c i e ia. The i s c i e ion, “En i onmen al”, conside s he en i onmen al consequences o
a company’s ope a ions and i s objec i es ega ding sus ainable p ac ices. En i onmen al
objec i es ocus on ca bon emissions, esou ce usage, was e managemen , pollu ion con ol,
and adop ion o enewable ene gy. The second c i e ion, “Social”, examines a company’s
long- e m e ec s on employees, cus ome s, and socie y. I in ol es ac o s like labo igh s,
human igh s, employee wel a e and di e si y, cus ome sa is ac ion, and p oduc sa e y.
The las c i e ion moni o s “Go e nance” and ocuses on he s uc u e and p ac ices
unde lying he decision-making and o e sigh p ocesses o a company. I includes elemen s
like boa d independence, execu i e compensa ion, sha eholde igh s, anspa ency, and
isk managemen .
ESG is pe cei ed as a c ucial de e minan o long- e m co po a e pe o mance, wi h
companies inc easingly ocusing on in eg a ing hese pilla s alongside hei inancial
objec i es. The li e a u e on ESG and co po a e pe o mance explo es how hese ac o s
in e ac and in luence a company’s inancial success, s akeholde ela ionships, and o e all
sus ainabili y.
These ESG ac o s a e in e connec ed and con ibu e o an o ganiza ion’s co po a e
pe o mance by imp o ing ope a ional e iciency, s eng hening b and epu a ion, and
mi iga ing isks ela ed o social o en i onmen al inciden s. ESG’s ole in co po a e
pe o mance has been ecognized as a dynamic p ocess in academic li e a u e (Wang e al.,
2025). Resea che s ha e emphasized ha ESG ac o s should be in eg a ed in o a company’s
o e all s a egy and ope a ions. Companies wi h s ong ESG amewo ks end o be be e
posi ioned o long- e m sus ainabili y, as hey conside no only sho - e m p o i s bu
also he long- e m implica ions o hei en i onmen al, social, and go e nance p ac ices
(R. Chen e al.,2023).
The ela ionship be ween ESG p ac ices and inancial pe o mance
has been a key a ea o in e es in managemen li e a u e. Resea che s ha e explo ed whe he
in es men s in ESG ini ia i es ansla e in o imp o ed inancial e u ns o companies
(Moussa e al.,2024).
Nume ous s udies ha e sugges ed a posi i e ela ionship be ween s ong ESG pe o -
mance and enhanced inancial ou comes (S. Chen e al.,2023) suppo ed by lowe ope a ing
cos s h ough ene gy e iciency and was e educ ion. A en ion o ESG ac o s d i es
alue c ea ion o s akeholde s (Hoang,2018) and p o ides a compe i i e ad an age o e
compe i o s (Teng & Wu,2018).
Howe e , he li e a u e also includes s udies ha ques ion o highligh a neu al o
nega i e ela ionship be ween ESG and inancial pe o mance. One eason o his di e -
gence is he po en ial sho - e m cos s associa ed wi h implemen ing obus ESG p ac ices.
Fo example, companies may ace high ini ial cos s when adop ing g een echnologies o
mee ing social compliance s anda ds. Fo smalle i ms o hose in eme ging ma ke s like
Romania, immedia e inancial bene i s may no jus i y hese ini ial in es men s (Bahadı
& Aka su,2024;Y. Xu & Zhu,2024). The heo e ical e olu ion o ESG and co po a e pe -
o mance ini ially ocused on sha eholde weal h maximiza ion (1970–1980). Then, wi h
he applica ion o s akeholde heo y (1980–1990), in e es shi ed owa d c ea ing alue
o all business s akeholde s (B idoux & S oelho s ,2022;F eeman,1984), F om 1997–2000
onwa d, he T iple Bo om Line (TBL) app oach, in oduced by John Elking on, o malized
he concep o balancing en i onmen al, social, and economic ac o s as pa o business
pe o mance (Pasama e al.,2023;Elking on,1998).
Adm. Sci. 2025,15, 103 7 o 31
The heo e ical e olu ion o ESG li e a u e and co po a e pe o mance e lec s a g ow-
ing ecogni ion o he long- e m alue o sus ainable p ac ices, alongside conce ns abou
he sho - e m cos s o hei implemen a ion.
In ecen yea s, esea che s and p ac i ione s ha e emphasized he need o in eg a ed
epo ing, whe e inancial pe o mance and ESG ac o s a e no ea ed sepa a ely bu a e
inco po a ed in o a comp ehensi e iew o a company’s long- e m pe o mance. This shi
in pe spec i e aligns wi h he inc easing ocus on long- e m alue c ea ion a he han
sho - e m p o i maximiza ion (Na ula e al.,2023).
Empi ical me hods used in s udies include quan i a i e analysis, such as eg ession
analysis o examine he ela ionship be ween ESG pe o mance and inancial pe o mance,
case s udies, me a-analyses agg ega ing esul s om mul iple empi ical s udies o de e -
mine he o e all s eng h o he ESG- inancial pe o mance ela ionship, and expe imen al
models (Soedja miko e al.,2021;Pe ei a e al.,2023;Nguyen e al.,2021;I ada e al.,2021;Fu
& Li,2023;Fink Babiˇc e al.,2023). ESG pe o mance leads o supe io long- e m inancial
esul s bu in ol es high immedia e inancial cos s and signi ican unce ain ies.
A he EU le el, he Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) 2022/2462
ex ends ESG epo ing o mo e ca ego ies o companies, impac ing hei business models.
I also calls o he adop ion and expansion o Eu opean sus ainabili y epo ing s anda ds
(ESRS). The CSRD applica ion schedule is as ollows: in 2025, i will include companies
al eady applying non- inancial epo ing (NFRD) (o e 500 employees) o he inancial
yea 2024; in 2026, i will consis o la ge companies wi h mo e han 250 employees, a
u no e o mo e han 40 million eu os, and o al asse s o mo e han 20 million eu os a
he end o he 2025 inancial yea ; in 2027, i will inco po a e insu ance companies, SMEs
lis ed on he s ock exchange, as well as c edi ins i u ions, o he inancial yea 2026; and
in 2029, non-Eu opean companies wi h b anches o subsidia ies in he Eu opean a ea will
be inse ed.
In Romania, he applica ion schedule ollows he di ec i e’s imeline and epo s he
ESG S a egy and ac ion plan, as well as he me hod o achie ing ESG objec i es and
a ge s, h ough he annual epo , comp ising quali a i e, quan i a i e, e ospec i e, and
p ospec i e in o ma ion (V. D. D agomi e al.,2023).
The academic li e a u e e eals a dynamic in e sec ion o pe spec i es ega ding he
ole o egula ions, di ec i es, ede a ions, and s ock exchanges in d i ing ESG pe o mance.
On one hand, manda o y egula ions and di ec i es a e seen as essen ial ools o holding
companies accoun able and ensu ing ha ESG ac o s a e sys ema ically embedded in
co po a e go e nance (Eccles e al.,2014;Cicchiello e al.,2023).
On he o he hand, he e is ecogni ion ha he olun a y na u e o ma ke -based
ini ia i es, such as hose p omo ed by s ock exchanges and ede a ions, can complemen
egula o y e o s by encou aging i ms o go beyond me e legal compliance (K uege
e al.,2023). The mixed na u e o hese amewo ks— egula o y e sus ma ke -based—
aises impo an ques ions abou he mos e ec i e ways o encou age companies o adop
sus ainable p ac ices (Ga ni e al.,2024;Aluchna e al.,2023).
The ongoing deba e e ol es a ound an op imal balance be ween manda o y and
olun a y app oaches. P oponen s o egula ions a gue ha as global sus ainabili y chal-
lenges become mo e complex, hey equi e a mo e igo ous legal amewo k (Bu e al.,
2024;Kuzey e al.,2023), Meanwhile, o he s sugges ha he lexibili y o e ed by olun a y
s ock exchange amewo ks allows i ms o ailo hei ESG s a egies o hei speci ic
ci cums ances (Cheng & Huang,2024;R. Chen e al.,2023;Ismaili & Kjøsnes,2021).
This highligh s he need o a holis ic app oach ha in eg a es he s eng hs o bo h
egula o y manda es and olun a y ma ke mechanisms, ensu ing ha all i ms, ega dless
o size o loca ion, a e encou aged o imp o e hei ESG pe o mance.
Adm. Sci. 2025,15, 103 8 o 31
In conclusion, he li e a u e o e s a ich and di e se pe spec i e on he ole o egula-
ions, di ec i es, ede a ions, and s ock exchanges in p omo ing ESG in eg a ion wi hin
co po a e s a egy. The con e gence o egula o y manda es, ma ke -based mechanisms,
and global sus ainabili y ini ia i es c ea es a complex landscape in which companies mus
na iga e compe ing p essu es o mee g owing s akeholde expec a ions (Ullah & Sun,
2021;Abeyseke aa & Fe nando,2020; an de Me we & Al Achka ,2022).
While e idence sugges s ha hese amewo ks can posi i ely impac co po a e pe -
o mance, he deba e o e hei ela i e e ec i eness con inues, wi h di e ing iews on he
app op ia e balance be ween legal en o cemen and olun a y adhe ence. Conside ing he
p o isions o epo ing s anda ds and he applica ion me hod used by companies which
a e subjec o hese s anda ds, he ollowing esea ch ques ion a ises: “Wha a e he mos
ele an pe o mance indica o s associa ed wi h en i onmen al pe o mance?”
2.3. Empi ical Li e a u e
Alongside o he s udies, his wo k complemen s in o ma ion ega ding he ela ion-
ship be ween en i onmen al capabili ies and a ious inancial indica o s g ouped in o
p o i abili y, liquidi y, isk, and e iciency indica o s.
En i onmen al capabili ies enhance p o i abili y h ough cos sa ings om ene gy
e iciency, was e educ ion, and esou ce op imiza ion. Companies ha implemen g een
echnologies can lowe ope a ional cos s, imp o e ma gins, and access p emium ma ke s by
o e ing eco- iendly p oduc s (Yang & Chen,2022). Financial pe o mance me ics include
e u n on asse s (ROA), e u n on equi y (ROE), and ne p o i ma gin, while indica o s o
en i onmen al capabili ies include ene gy-e icien echnologies and sus ainable p oduc
o e ings. Liquidi y is ano he inancial me ic impac ed by en i onmen al capabili ies,
as cos educ ions and minimized exposu e o egula o y ines con ibu e o s onge
cash low.
P oac i e en i onmen al p ac ices imp o e cash low and p o ec companies om
legal sanc ions, making i easie o mee sho - e m inancial obliga ions (A co-Cas o
e al.,2023;K. Kim,2018;Saleem e al.,2021). En i onmen al capabili ies also mi iga e
isks, pa icula ly en i onmen al and egula o y isks. By adhe ing o en i onmen al
s anda ds, companies a oid penal ies, minimize clima e- ela ed dis up ions, and sa egua d
hei epu a ion (Y. Chen e al.,2021;Geng e al.,2017). The impac o en i onmen al
capabili ies on inancial pe o mance o en un olds o e a longe ime ame (3–5 yea s),
wi h sho - e m bene i s p ima ily e lec ed in cos educ ions.
In conclusion, en i onmen al capabili ies can posi i ely in luence p o i abili y, liq-
uidi y, isk managemen , and ope a ional e iciency. P oac i e en i onmen al p ac ices
lead o imp o ed inancial ou comes o e ime, al hough he ull bene i s may only be
ecognized a e a longe e alua ion pe iod (Tyle e al.,2024;Saleem e al.,2021). Key
inancial pe o mance measu es include ROA, he cu en a io, and s ock p ice ola ili y,
while ene gy e iciency, was e managemen , and en i onmen al compliance a e he main
a iables o en i onmen al capabili y.
Resea ch by Haninun e al. (2018) on 108 companies lis ed on he Indonesia S ock
Exchange (BEI) showed ha en i onmen al pe o mance is in luenced by inancial me ics
such as e u n on asse s (ROA) and e u n on equi y (ROE). Simila ly, an analysis o he im-
pac o en i onmen al pe o mance and managemen on i m alue, measu ed wi h e u n
on asse s as a inancial media o (ROA), was conduc ed on a sample o 144 manu ac u ing
o ganiza ions lis ed on he Indonesia S ock Exchange (IDX) (Soedja miko e al.,2021).
In es iga ing he ela ionship be ween en i onmen al pe o mance and inancial pe -
o mance, as ep esen ed by indica o s such as p o i ma gin inc eases, ma ke sha e g ow h,
e enue g ow h, e u n on in es men imp o emen , and o e all inancial pe o mance
Adm. Sci. 2025,15, 103 15 o 31
he accumula ion and in es men in physical capi al, he ad en o new echnologies, and
he de elopmen o human capi al.
Capi al In ensi y (CAP) signi ies he la ge capi al inpu in es ed in a business p ocess
ac oss di e en indus ies. The need o in es men s in ixed asse s (land, buildings,
ins alla ions, and equipmen ) is highe in special ac i i ies (oil ex ac ion, chemical and
oil plan s, ai c a p oduc ion, e c.). Indus ies equi ing la ge capi al in es men s a e
ecognized as capi al-in ensi e businesses.
The Equi y Mul iplie (EQM) ep esen s he quan i a i e ela ion be ween a company’s
o al asse s and i s equi y, e lec ing he po ion o he company’s asse s inanced by equi y.
An ele a ed a io deno es inc eased inancial le e age ( o al deb o equi y), whe eas a
diminished a io signi ies educed inancial le e age.
The pe o mance indica o s (model a iables) ROA, ROE, DER, SOLV, ATR, LP, CAP,
and EQM we e de e mined by using simple indica o s (Tu no e , Ne P o i , Deb , Fixed
Asse s, Cu en Asse s, Equi y, Employees and To al Asse s).
The ini ial hypo hesized model chosen o he conduc ed eg ession analysis is:
EP =b0+b1∗ST +b2∗NoE +b3∗TA +b4∗ROA +b5∗ROE +b6∗DER +b7∗SOLV +b8∗ATR+
b9∗LP +b10 ∗CAP +b11 ∗EQM +b12 ∗FA +e(2)
The a iables a e desc ibed in Table 2.
Table 2. Desc ip ion o models’ a iables.
Va iable
Coding
Measu ing
EP (en i onmen al
pe o mance) EP Sco e
Sales u no e ST To al sales
Numbe o employees NoE A e age numbe o employees
To al asse s TA To al asse s
Re u n on asse s ROA Ne income/To al asse s
Re u n on Equi y ROE Ne income/Equi y
Deb - o-Equi y Ra io (le e age) DER To al deb /To al equi y
Sol ency a io SOLV To al asse s/To al liabili ies
Asse u no e a io ATR. Tu no e /To al asse s
Labou p oduc i i y LP ((Tu no e /1000)/Numbe o employees
Capi al in ensi y CAP To al asse s/Sales Tu no e
Equi y mul iplie EQM To al asse s/Equi y
Fi m age FA Yea s since he ounda ion
Sou ce: ealized by he au ho s.
Ou da a analysis was pe o med u ilizing he IBM SPSS S a is ics so wa e e sione
26 (Howi & C ame ,2006), implemen ing an a ay o analy ical me hods (Malho a,2004).
The chosen models and echniques o da a analysis we e me iculously aligned wi h he
esea ch objec i es (Cons an in,2006;Jaba & G ama,2004).
The ollowing me hods we e employed: coe icien o a ia ion analysis [c ], - es s
on he Be a (b
i
) coe icien s o he eg ession, coe icien o a ia ion R Squa ed, F es
on he se o he en a o emen ioned eg esso s, Tole ance Analysis o iden i ica ion o
mul icollinea i y, o wa d a iable selec ion, backwa d a iable selec ion, as well as he
Du bin Wa son es (Bobbi ,2024).
4. Resul s
The s udy esul s indica ed ha he i o he linea eg ession model wi h EP as a
esponse a iable and he en indica o s ( u no e , numbe o employees, ROA, ROE,
Adm. Sci. 2025,15, 103 16 o 31
DER, CAP, LP, SOLV, ATR, and FA) as explana o y a iables was good (
α
= 0.01% and
R = 0.21).
This implies ha he a iabili y in he alues o EP could be pa ially explained
by he a iabili y in he alues o any o he en indica o s. Mo eo e , he indings o he
s udy indica ed a signi ican posi i e co ela ion be ween u no e and en i onmen al
pe o mance, sugges ing ha inc eased u no e co esponds wi h highe en i onmen al
pe o mance alues.
Fo he applica ion o he Du bin Wa son Tes , he abula ed alues we e d1 = 1.891
and d2 = 1.901 o he signi icance le el
α
= 1%, and dcal = 0.75, so dcal < d1, esul ing
in he declining o he null hypo hesis o esidue independence, i.e., he e o s exhibi ed
au oco ela ion.
Acco ding o he desc ip i e s a is ics (Table 3), he e was a mode a e a ia ion in
he sco e o he en i onmen al pe o mance (EP) indica o [10% < c < 20%] and a high
a ia ion [c > 20%] o he indica o ’s u no e , numbe o employees, o al asse s, ROA,
ROE, DER, CAP, EQM, LP, SOLV, ATR, and FA.
Table 3. Desc ip i e s a is ics.
Va iable N S a is ic
Range S a is ic
Minimum
S a is ic
Maximum
S a is ic Mean S a is ic Mean S d.
E o
S d. De ia ion
S a is ic
EP 2004 3 2 5 3.44 0.010 0.456
ST 2004 24,671,024,844 1239 24,671,026,083 822,327,295.77 42,604,382.579 1,907,230,285.9
NoE 2004 22,844 0 22,844 1211.19 42.574 1905.868
TA 2004 83,216,748,402 25,401 83,216,773,803 904,843,681.38 89,372,100.600 4,000,836,690.1
ROA 2004 3 −2 1 0.06 0.004 0.158
ROE 2004 340 −280 60 0.04 0.149 6.675
DER 2004 3556 −251 3306 5.20 1.806 80.868
CAP 2004 55,723 0 55,723 29.39 27.807 1244.789
EQM 2004 3561 −280 3281 6.57 1.813 81.162
LP 2004 2,459,929,135 0 2,459,929,135 54,173,298.68 4,565,975.919 204,400,745.41
SOLV 2004 122 0 122 3.22 0.120 5.359
ATR 2004 13 0 13 1.86 0.030 1.340
FA 2004 2011 −1980 31 15.28 1.734 77.644
Sou ce: ealized by he au ho s, using he esul s ob ained om SPSS 26.
The desc ip i e s a is ics e ealed se e al key cha ac e is ics o he da ase : Ou lie s
and Ex eme Values. Some a iables exhibi ed a wide ange and ex eme alues, pa ic-
ula ly ROE ( ange: 340, minimum:
−
280, maximum: 60), DER ( ange: 3556, minimum:
−251, maximum: 3306), and EQM ( ange: 3561, minimum: −280, maximum: 3281).
These ex eme alues sugges po en ial ou lie s ha could ha e in luenced eg ession
es ima es and equi e app op ia e ea men .
Skewed Dis ibu ions: Se e al inancial a iables, such as ST (Sho - e m liabili ies),
TA (To al Asse s), and LP (Liquidi y Posi ion), exhibi ed high s anda d de ia ions ela i e
o hei means. This sugges s a igh -skewed dis ibu ion, likely d i en by a ew
la ge i ms.
Nega i e Values: Va iables like ROA, ROE, FA, and CAP included nega i e alues,
which may indica e inancial dis ess o speci ic accoun ing ea men s in ce ain i ms.
These alues we e ca e ully conside ed in ou model speci ica ion o ensu e ha hey did
no in oduce unin ended biases.
Economic Implica ions: The sol ency a io (SOLV), wi h a maximum alue o 122
and a mean o 3.22, sugges s ha while mos i ms main ained easonable sol ency, a ew
exhibi ed ex emely high alues, likely dis o ing he dis ibu ion. Simila ly, he ATR (Asse
Tu no e Ra io) had a mean o 1.86 bu eached a maximum o 13, implying a iabili y in
ope a ional e iciency among i ms.
To mi iga e he po en ial impac o ex eme alues, we conduc ed u he analyses
by es ing di e en h esholds o ou lie exclusion. Addi ionally, we assessed model
obus ness un il we eached he inal eg ession model.
Adm. Sci. 2025,15, 103 17 o 31
An impo an s a is ical indica o o in e dependencies is he coe icien o a ia ion
(c ), p oposed by K. Pea son. To s udy he po en ial associa ions among he economic-
inancial indica o s, a co ela ion ma ix was calcula ed (Table 4).
Table 4. Ma ix o co ela ions.
Va iable
EP ST NoE TA ROA ROE DER CAP EQM LP SOLV ATR FA
EP 1 0.164 ** 0.093 ** 0.040 −0.041 0.001 −0.003 0.003 −0.006 0.075 ** −0.034 −0.091 ** 0.066 **
ST 1 0.436 ** 0.423
** −0.001 0.005 −0.011 −0.010 −0.013 0.244 * −0.028 0.011 0.026
NoE 1 0.365
** −0.056 * −0.007 0.002 −0.003 0.002 −0.166 ** −0.018 −0.062 ** 0.011
TA 1 −0.033 0.001 0.002 −0.003 0.004 0.097 ** 0.101 ** −0.160 ** 0.014
ROA 1 0.054 * −0.027 −0.216
** −0.028 0.039 0.043 −0.207 ** 0.027
ROE 1 −0.895
** 0.000 −0.890
** 0.003 0.005 0.032 0.016
DER 1 −0.002 0.999 ** −0.011 −0.024 0.001 −0.015
CAP 1 −0.002 −0.0006 −0.012 −0.032 −0.003
EQM 1 −0.012 −0.019 −0.002 −0.014
LP 1 0.013 −0.044 0.016
SOLV 1 −0.226 ** 0.028
ATR 1 −0.021
FA 1
* Co ela ion is signi ican a he 0.05 le el (2- ailed). ** Co ela ion is signi ican a he 0.01 le el (2- ailed). Sou ce:
ealized by he au ho s, using he esul s ob ained om SPSS.
Pea son’s coe icien o a ia ion assumes ha he da a a e measu ed on a a io scale
wi h a meaning ul ze o poin and ha he unde lying dis ibu ion is app oxima ely no mal
when making in e en ial compa isons. Howe e , in his analysis, model selec ion was
employed o de e mine he mos ele an eg esso s, ul ima ely de ining he h eshold o
inclusion. A his s age, he p ima y pu pose o he co ela ion able was o se e as an
ini ial diagnos ic ool o iden i ying po en ial collinea i y among explana o y a iables,
a he han o assess he s eng h o indi idual ela ionships.
Upon examina ion o he co ela ion ma ix, i was e iden ha he e we e s a is ically
signi ican co ela ions among he a iables s udied, bo h posi i e and nega i e, as ollows:
•
EP was posi i ely co ela ed wi h ST (sales u no e ) ( = 0.16 ***), NoE (numbe o
employees) ( = 0.09 ***), LP (labo p oduc i i y) ( = 0.07 ***), FA ( i m age)
( = 0.07 ***)
and nega i ely wi h: ATR ( = −0.09 ***);
•
Sales u no e (ST) was posi i ely co ela ed wi h Numbe o employees, To al asse s
(TA), LP (co ela ion coe icien s ange be ween 0.24 and 0.44);
•
Numbe o employees was co ela ed wi h To al asse s, ROA, LP and ATR, exhibi ing
bo h posi i e and nega i e associa ions;
•
TA (To al asse s) was co ela ed wi h LP, SOLV, ATR, in ol ing posi i e as well as
nega i e in e connec ions;
•ROA was co ela ed wi h ROE, CAP, and ATR, ha ing bidi ec ional co ela ions;
•ROE is co ela ed wi h DER and EQM ( e y s ong nega i e co ela ions);
•
DER was posi i ely co ela ed wi h EQM, indica ing a s ong s aigh connec ion
be ween hese wo a iables, implying a s ong linea dependence;
•SOLV was nega i ely co ela ed wi h ATR.
The co ela ion ma ix sugges ed high collinea i y be ween EQM and DER and be-
ween EQM and ROE. The e o e, we elimina ed he eg esso EQM (Equi y Mul iplie ) in
he eg ession model, e aining DER and ROE o ob ain:
EP =b0+b1∗ST +b2∗NoE +b3∗TA +b4∗ROA +b5∗ROE +b6∗DER +b7∗SOLV +b8∗ATR+
b9∗LP +b10 ∗CAP +b11 ∗FA +e(3)
Fo he a o emen ioned equa ion, we hen es ed he analysis o a iance o he e-
sponse EP (Table 5).
Adm. Sci. 2025,15, 103 18 o 31
Table 5. Va iances o Examining Mul iple Reg ession (Equa ion (1)—F- es ).
ANOVA a
Sum o Squa es d
Mean Squa e
F Sig.
Reg ession 19.423 11 1.766 8.857 <0.001 b
Residual 397.128 1992 0.199
To al 416.550 2003
aDependen Va iable: EP bP edic o s: (Cons an ), FA, CAP, NoE, DER, SOLV, LP, ROA, ATR, TA, ST, ROE.
The F-s a is ic (8.857) and he e y low p- alue (<0.001) sugges ed ha he eg ession
model was s a is ically signi ican . This means ha he independen a iables collec i ely
explained a signi ican po ion o he a iance in he dependen a iable.
The eg ession coe icien es ima ion is shown in Table 6.
Table 6. Reg ession coe icien ma ix a.
Va iable Uns anda dized B Coe icien s
S d. E o
S anda dized
Coe icien s Be a
Sig. Collinea i y
Tole ance
S a is ics VIF
Cons an 3.476 0.022 161.578 <0.001
ST 3.745 ×10−11 0.000 0.157 5.744 <0.001 0.644 1.554
NoE 1.074 ×10−50.000 0.045 1.702 0.089 0.688 1.453
TA −6.838 ×10−12 0.000 −0.060 −2.373 0.018 0.749 1.336
ROA −0.064 0.067 −0.022 −0.951 0.342 0.898 1.114
ROE 0.001 0.003 0.012 0.240 0.810 0.197 5.069
DER 4.885 ×10−50.000 0.009 0.176 0.860 0.198 5.058
CAP −1.401 ×10−60.000 −0.004 −0.171 0.865 0.953 1.050
LP 1.022 ×10−10 0.000 0.046 1.919 0.055 0.840 1.191
SOLV −0.004 0.002 −0.048 −2.095 0.036 0.929 1.076
ATR −0.035 0.008 −0.103 −4.380 <0.001 0.872 1.147
FA 0.000 0.000 0.061 2.783 0.005 0.997 1.003
aDependen Va iable: EP Sou ce: ealized by he au ho s, using he esul s ob ained om SPSS.
The magni ude o he s anda dized coe icien s e lec s he impo ance o he inde-
penden a iables in p edic ing he EP indica o . The la ge he absolu e alue o he
Be a coe icien , he s onge he e ec o he co esponding independen a iable on he
dependen a iable, while a posi i e Be a sugges s a di ec ela ionship and a nega i e Be a
indica es an in e se ela ionship. In his case, ST is he mos in luen ial a iable, ollowed
by ATR (in he nega i e di ec ion) wi h CAP ha ing he leas nega i e impac on EP.
The mul iple co ela ion coe icien (R) (Table 7) signi ies he ex en o associa ion
be ween he dependen a iable, en i onmen al pe o mance (EP), and he a ay o inde-
penden a iables, wi h a eco ded alue o 0.216. An R alue nea 0 deno es an insigni ican
eg ession. Gi en ha R o en exagge a es he associa ion be ween he a iables, he mo e
eliable me ic is he coe icien o de e mina ion (R² = 0.047), which ep esen s he squa e
o he mul iple co ela ion coe icien . Fo his model, 4.7% o he a iance in EP could be
explained by he independen a iables (FA, CAP, NoE, DER, SOLV, LP, ROA, ATR, TA, ST,
ROE). R
2
is equi alen o he F- es when i concludes whe he he model is signi ican . R2
shows, howe e , he p opo ion o explained a iance o he ull model, which canno be
concluded om he - es s o he eg esso s.
Adm. Sci. 2025,15, 103 19 o 31
Table 7. Ini ial model summa y.
Ini ial Model Summa y b
Model R R Squa e Adjus ed R Squa e S d. E o o he Es ima e Du bin-Wa son
1 0.216 a0.047 0.041 0.446 0.756
a
P edic o s: (Cons an ), FA, CAP, NoE, DER, SOLV, LP, ROA, ATR, TA, ST, ROE
b
Dependen Va iable: EP. Sou ce:
ealized by he au ho s, using he esul s ob ained om SPSS.
F om he analysis o he eg ession coe icien s (Table 6) ela ed o he model, i can be
obse ed ha he e we e only i e a iables wi h a s a is ically signi ican in luence, speci i-
cally, SOLV, FA and TA, ATR and Tu no e on en i onmen al pe o mance (EP). Hence, we
applied he o wa d selec ion me hod o iden i y and alida e he p e ious esul s.
Consequen ly, he ele an in o ma ion was consolida ed wi hin mul iple co ela ion
coe icien and Du bin-Wa son es alues (Table 8), F- es (Table 9), eg ession coe icien s,
and collinea i y s a is ics (Table 10).
Table 8. Model summa y .
Model R R Squa e Adjus ed R Squa e S d. E o o he Es ima e Du bin-Wa son
1 0.164 a0.027 0.026 0.450
20.188 b0.035 0.034 0.448
3 0.197 c0.039 0.037 0.447
40.204 d0.042 0.040 0.447
5 0.209 e0.044 0.041 0.446 0.753
a
P edic o s: (Cons an ), ST
b
P edic o s: (Cons an ), ST, ATR
c
P edic o s: (Cons an ), ST, ATR, FA
d
P edic o s:
(Cons an ), ST, ATR, FA, SOLV
e
P edic o s: (Cons an ), ST, ATR, FA, SOLV, TA
Dependen Va iable: EP Sou ce:
ealized by he au ho s, using he esul s ob ained om SPSS.
Table 9. Va iances o Examining Mul iple Reg ession (Equa ion (2)—F- es ).
ANOVA a
Sum o Squa es d
Mean Squa e
F Sig.
Reg ession 18.247 5 3.649 18.306 <0.001 b
Residual 398.303 1998 0.199
To al 416.550 2003
a
Dependen Va iable: EP
b
P edic o s: (Cons an ), ST, ART, FA, SOLV, TA Sou ce: ealized by he au ho s, using
he esul s ob ained om SPSS.
The coe icien o de e mina ion (R²) was hen 0.044, so ha 4.4% o he a iance in EP
could be explained by he i e independen a iables (ST, ATR, FA, SOLV, TA).
Co esponding o F- es , he linea ela ionship be ween he i e a iables and EP
was s a is ically signi ican . The abula alue F0.01; 5; 1993 = 2.37 was below he F alue
calcula ed based on empi ical da a, Fcal = 18.306, hus suppo ing he hypo hesis ha he
linea eg ession be ween EP, ST, TA, SOLV, ATR, and FA was a good i .
The ma ix helped us o unde s and which a iables signi ican ly impac ed he depen-
den a iable and assesses he p esence o mul icollinea i y.
The ST a iable showed he highes s anda dized be a (0.184), alongside a - alue o
7.556, wi h signi icance lowe han 0.001 indica ing a signi ican posi i e ela ionship wi h
he dependen a iable EP. Meanwhile VIF alues we e below 10, displaying no se e e
mul icollinea i y.
Adm. Sci. 2025,15, 103 20 o 31
Table 10. Reg ession coe icien s and collinea i y s a is ics.
Model Uns anda ized
B
Coe icien s
S d. E o
S anda dized
Coe icien s
Be a
Sig.
Collinea i y
Tole ance
S a is ics
VIF
1Cons an 3.411 0.011 311.581 <0.001
ST 3.917 ×10−11 0.000 0.164 7.431 <0.001 1.000 1.000
2
Cons an 3.469 0.018 196.877 <0.001
ST 3.941 ×10−11 0.000 0.165 7.506 <0.001 1.000 1.000
ATR −0.031 0.007 −0.092 −4.207 <0.001 1.000 1.000
3
Cons an 3.463 0.018 195.411 <0.001
ST 3.904 ×10−11 0.000 0.163 7.445 <0.001 0.999 1.001
ATR −0.031 0.007 −0.091 −4.156 <0.001 0.999 1.001
FA 0.000 0.000 0.060 2.715 0.007 0.999 1.001
Cons an 3.486 0.020 173.771 <0.001
4 ST 3.870 ×10−11 0.000 0.162 7.387 <0.001 0.999 1.001
ATR −0.035 0.008 −0.104 −4.605 <0.001 0.948 1.054
FA 0.000 0.000 0.061 2.778 0.006 0.998 1.002
SOLV −0.005 0.002 −0.055 −2.441 0.015 0.948 1.005
5
Cons an 3.491 0.020 173.075 <0.001
ST 4.388 ×10−11 0.000 0.184 7.556 <0.001 0.811 1.233
ATR −0.038 0.008 −0.111 −4.878 <0.001 0.924 1.082
FA 0.000 0.000 0.061 2.775 0.006 0.998 1.002
SOLV −0.004 0.002 −0.051 −2.254 0.024 0.940 1.064
TA −5.787 ×
10−12 0.000 −0.051 −2.060 0.040 0.788 1.269
Dependen Va iable: EP Sou ce: ealized by he au ho s, using he esul s ob ained om SPSS.
Rega ding he linea i y hypo hesis, he ela ionships be ween he explana o y a iables
and he esponse a iable we e examined by plo ing he uns anda dized esiduals agains
each explana o y a iable. The esul ing wo-dimensional plo s (Figu e 1) sugges ed ha
he ela ionships exhibi ed linea i y, suppo ing he app op ia eness o ou analy ical
app oach.
Adm. Sci. 2025, 15, x FOR PEER REVIEW 20 o 34
Table 10. Reg ession coefficien s and collinea i y s a is ics.
Model
Uns anda ized
B
Coefficien s
S d. E o
S anda dized
Coefficien s
Be a
Sig.
Collinea i y
Tole ance
S a is ics
VIF
1 Cons an 3.411 0.011 311.581 <0.001
ST 3.917E-11 0.000 0.164 7.431 <0.001 1.000 1.000
2
Cons an 3.469 0.018 196.877 <0.001
ST 3.941E-11 0.000 0.165 7.506 <0.001 1.000 1.000
ATR −0.031 0.007 −0.092 −4.207 <0.001 1.000 1.000
3
Cons an 3.463 0.018 195.411 <0.001
ST 3.904E-11 0.000 0.163 7.445 <0.001 0.999 1.001
ATR −0.031 0.007 −0.091 −4.156 <0.001 0.999 1.001
FA 0.000 0.000 0.060 2.715 0.007 0.999 1.001
Cons an 3.486 0.020 173.771 <0.001
4 ST 3.870E-11 0.000 0.162 7.387 <0.001 0.999 1.001
ATR −0.035 0.008 −0.104 −4.605 <0.001 0.948 1.054
FA 0.000 0.000 0.061 2.778 0.006 0.998 1.002
SOLV −0.005 0.002 −0.055 −2.441 0.015 0.948 1.005
5
Cons an 3.491 0.020 173.075 <0.001
ST 4.388E-11 0.000 0.184 7.556 <0.001 0.811 1.233
ATR −0.038 0.008 −0.111 −4.878 <0.001 0.924 1.082
FA 0.000 0.000 0.061 2.775 0.006 0.998 1.002
SOLV −0.004 0.002 −0.051 −2.254 0.024 0.940 1.064
TA −5.787E-12 0.000 −0.051 −2.060 0.040 0.788 1.269
Dependen Va iable: EP Sou ce: ealized by he au ho s, using he esul s ob ained om SPSS.
The coefficien o de e mina ion (R²) was hen 0.044, so ha 4.4% o he a iance in
EP could be explained by he i e independen a iables (ST, ATR, FA, SOLV, TA).
Co esponding o F- es , he linea ela ionship be ween he i e a iables and EP
was s a is ically signi ican . The abula alue F0.01; 5; 1993 = 2.37 was below he F alue
calcula ed based on empi ical da a, Fcal = 18.306, hus suppo ing he hypo hesis ha he
linea eg ession be ween EP, ST, TA, SOLV, ATR, and FA was a good i .
The ma ix helped us o unde s and which a iables signi ican ly impac ed he de-
penden a iable and assesses he p esence o mul icollinea i y.
The ST a iable showed he highes s anda dized be a (0.184), alongside a - alue o
7.556, wi h signi icance lowe han 0.001 indica ing a signi ican posi i e ela ionship
wi h he dependen a iable EP. Meanwhile VIF alues we e below 10, displaying no
se e e mul icollinea i y.
Rega ding he linea i y hypo hesis, he ela ionships be ween he explana o y a i-
ables and he esponse a iable we e examined by plo ing he uns anda dized esiduals
agains each explana o y a iable. The esul ing wo-dimensional plo s (Figu e 1) sug-
ges ed ha he ela ionships exhibi ed linea i y, suppo ing he app op ia eness o ou
analy ical app oach.
Figu e 1. Uns anda dized esiduals plo .
A sca e plo o esiduals (ob ained a e i ing he iden i ied eg ession model)
agains each explana o y a iable showed ha he linea assump ion was co ec . In hese
igu es, we no iced ha he esiduals we e symme ically dis ibu ed a ound ze o o e he
ange o he explana o y a iable in he discussion (x axis).
The co ela ions be ween Sales u no e and EP and Fi m age and EP we e posi i e,
meaning ha a high u no e o age o he company was associa ed wi h a high EP alue.
Since he co ela ions be ween ST/FA and EP we e s a is ically signi ican , inc easing he
u no e alue o he age also inc eased he EP alue, conside ing ha all o he a iables
emained unchanged. The co ela ions be ween SOLV/ATR/TA and EP we e nega i e,
meaning low alues o hese a iables co esponded o high EP alues, when all he o he
a iables emained unchanged. So, dec easing sol ency o asse s u no e o o al asse s
alues inc eased EP alues.
Adm. Sci. 2025,15, 103 21 o 31
To es he linea ela ionship be ween each explana o y a iable and he esponse
a iable (EP), he - es was applied o each eg ession coe icien , demons a ing whe he
a linea ela ionship exis ed be ween he a iables (in his case, ST, TA, SOLV, ATR, FA,
and EP). The e o e, i was applied i e imes, once o each eg ession coe icien . The
F- es in Table 9combines hese i e es s in o one, es ing all i e explana o y a iables
simul aneously o de e mine i a leas one o hem is no ze o. The pa ame e s in he
p eceding equa ion we e es ima ed u ilizing he leas squa es me hod.
Th ough he abo e eg ession equa ion, we aimed o see how non- inancial and
inancial ac o s (ST, TA, SOLV, ATR, FA) in luenced en i onmen al pe o mance (EP). This
means ha we we e in es iga ing he ela ionship among he i e a iables, i.e., u no e ,
numbe o employees, SOLV, ATR, FA, called explana o y a iables, and EP, called he
explained a iable.
In conclusion, acco ding o he F- es (Table 9), he eg ession equa ion was s a is ically
signi ican a he
α
= 0.01% le el. The ela ionship among EP and he i e a iables (bo h
non- inancial and inancial) could be assumed o be linea , as desc ibed by Equa ion (3).
The mul iple co ela ion coe icien R (R = 0.209) was signi ican . The ela ionship
be ween he i e a iables and en i onmen al pe o mance (EP) was obus , as indica ed
by he mul iple co ela ion coe icien R (R = 0.209). The o al coe icien o de e mina ion
D = 0.04% [D = R²
×
100 = 4.4%], which means ha he a ia ion in EP alues be ween 2.0
and 4.65 was in luenced by he i e a iables s udied o he ex en o 4.4%.
Collinea i y deno es a signi ican co ela ion be ween he independen a iables. In
such cases, ole ance s a is ics a e compu ed by solely conside ing he independen a i-
ables, excluding he dependen a iable om he model. This leads o mul icollinea i y,
whe e including one a iable om he g oup in he model ende s he emaining a iables
in he g oup insigni ican . Simul aneously, he e is an o e es ima ion o he coe icien
o de e mina ion and he dispe sions o he es ima ed coe icien s, which can dis o he
model in e p e a ion and widen con idence in e als. Thus, he e we e wo aspec s o
conside : de e mining mul icollinea i y and how o add ess mul icollinea i y i i exis ed
(Table 10 Collinea i y S a is ics)
In Table 10, we show he s anda dized eg ession coe icien s o each independen
a iable (Be a) and Tole ance o each a iable x
i
. A low ole ance alue ( anging om 0
o 1) e lec s a coe icien o de e mina ion close o 1, indica ing a s ong linea ela ion-
ship be ween xi and he o he independen a iables. Acco ding o he ole ance alues,
mul icollinea i y was no indica ed.
The a iance in la ion ac o (VIF) measu es he ex en o mul icollinea i y. I he VIF
alue is below 0.2 o highe han 10, hen mul icollinea i y is oublesome.
I was obse ed ha VIF
Adm. Sci. 2025, 15, x FOR PEER REVIEW 22 o 33
I was obse ed ha VIF ⸦ (0.2; 10) as i anged be ween 1.00 and 1.269; hus, he
absence o mul icollinea i y implied ha he e was no signi ican co ela ion be ween he
a iables.
The Du bin-Wa son es was applied o he i e a iables as well (Table 8). The
phenomenon o au oco ela ion dis o s no only he es ima o s— he pa ial eg ession
coefficien s—bu also hei a iances, wi h un a o able implica ions o accep ing o e-
jec ing a null hypo hesis (H0).
Thus, o a numbe o obse a ions n = 2004 and a numbe p = 5 o independen
a iables (non- inancial and inancial indica o s), he abula ed alues o d we e dL =
1.891 and dU = 1.901 a a signi icance le el α = 1% acco ding o he Du bin-Wa son sig-
ni icance able (Real S a is ics Using Excel, 2023). The calcula ed d alue dcal = 0.75 was
less han d1, which means he hypo hesis o esidual independence could be ejec ed.
Thus, he null hypo hesis H0 was ejec ed, indica ing ha e o s exhibi ed au oco ela-
ion. This case is common in si ua ions in ol ing ime se ies da a, such as he analyzed
da abase.
We may he e o e conclude ha he e we e s a is ically signi ican posi i e co ela-
ions be ween sales u no e (ST) and en i onmen al pe o mance (EP), as well as be-
ween i m age (FA) and EP.
5. Discussion
En i onmen al Social Go e nance (ESG) is a phenomenon ha has become global in
con empo a y imes. Consequen ly, he inclusion o sus ainabili y egula ions and
s anda ds has become necessa y. Building on his idea and analyzing sus ainable e-
po ing and en i onmen al esponsibili y, a case s udy was de eloped o companies
ope a ing in Romania.
The ela ionship be ween en i onmen al pe o mance and inancial pe o mance,
widely deba ed in he li e a u e, does no always show he same in luence, wi h exis ing
s udies o en eaching con adic o y conclusions. Some esea ch highligh s a posi i e
impac o sus ainable p ac ices on i ms’ p o i abili y (Pe ei a e al., 2023; Pe e a e al.,
2021; Junque a & Ba ba-Sánchez, 2018), while o he s sugges ha g een in es men s can
gene a e high cos s, affec ing sho - e m p o i abili y (Fazli e al., 2023; Chen e al., 2016;
Chen e al., 2021). In his con ex , he p esen s udy ills an impo an gap in he li e a u e
by analyzing no only he co ela ion among hese a iables bu also he ela ionship
be ween en i onmen al inancial pe o mance and economic pe o mance, exp essed
h ough ST, TA, SOLV, and ATR. The p esen esea ch makes a heo e ical con ibu ion
by expanding he concep ual amewo k ega ding he ela ionship be ween en i on-
men al and inancial pe o mance by including mul iple inancial and pe o mance in-
dica o s in he analysis.
The s udy p o ides s a is ical e idence on he impac o en i onmen al pe o mance
on inancial pe o mance, using an ex ensi e sample o companies om a ious eco-
nomic sec o s. The ob ained esul s can guide manage ial decisions ega ding esou ce
alloca ion o sus ainabili y policies, demons a ing ha well-managed ecological s a e-
gies can b ing abou signi ican economic bene i s (Nishi ani e al., 2017; Na ula e al.,
2023; Soedja miko e al., 2021). The e o e, in he long un, inc easing en i onmen al p o-
ec ion and imp o ing en i onmen al pe o mance posi i ely in luence a company’s i-
nancial pe o mance (Song e al., 2017; Soedja miko e al., 2021; Zhang e al., 2019).
Empi ically, exis ing s udies p o ide mixed esul s. Fo example, a s udy conduc ed
by Flo ina-Mădălina Mocanu in es iga ed he ela ionship be ween inancial pe o -
mance and co po a e go e nance p ac ices in Romanian banking companies, highligh -
ing he impo ance o co po a e go e nance in achie ing inancial pe o mance (Mocanu
& Lungu, 2021). The impac o co po a e go e nance p ac ices on inancial pe o mance
(0.2; 10) as i anged be ween 1.00 and 1.269; hus, he
absence o mul icollinea i y implied ha he e was no signi ican co ela ion be ween
he a iables.
The Du bin-Wa son es was applied o he i e a iables as well (Table 8). The
phenomenon o au oco ela ion dis o s no only he es ima o s— he pa ial eg ession
coe icien s—bu also hei a iances, wi h un a o able implica ions o accep ing o ejec -
ing a null hypo hesis (H0).
Thus, o a numbe o obse a ions n = 2004 and a numbe p= 5 o independen
a iables (non- inancial and inancial indica o s), he abula ed alues o d we e dL = 1.891
and dU = 1.901 a a signi icance le el
α
= 1% acco ding o he Du bin-Wa son signi icance
able (Real S a is ics Using Excel,2023). The calcula ed d alue dcal = 0.75 was less han
d1, which means he hypo hesis o esidual independence could be ejec ed. Thus, he null
hypo hesis H
0
was ejec ed, indica ing ha e o s exhibi ed au oco ela ion. This case is
common in si ua ions in ol ing ime se ies da a, such as he analyzed da abase.
Adm. Sci. 2025,15, 103 22 o 31
We may he e o e conclude ha he e we e s a is ically signi ican posi i e co ela ions
be ween sales u no e (ST) and en i onmen al pe o mance (EP), as well as be ween i m
age (FA) and EP.
5. Discussion
En i onmen al Social Go e nance (ESG) is a phenomenon ha has become global
in con empo a y imes. Consequen ly, he inclusion o sus ainabili y egula ions and
s anda ds has become necessa y. Building on his idea and analyzing sus ainable epo ing
and en i onmen al esponsibili y, a case s udy was de eloped o companies ope a ing
in Romania.
The ela ionship be ween en i onmen al pe o mance and inancial pe o mance,
widely deba ed in he li e a u e, does no always show he same in luence, wi h exis ing
s udies o en eaching con adic o y conclusions. Some esea ch highligh s a posi i e
impac o sus ainable p ac ices on i ms’ p o i abili y (Pe ei a e al.,2023;Pe e a e al.,2021;
Junque a & Ba ba-Sánchez,2018), while o he s sugges ha g een in es men s can gene a e
high cos s, a ec ing sho - e m p o i abili y (Fazli e al.,2023;Y. S. Chen e al.,2016;Y. Chen
e al.,2021). In his con ex , he p esen s udy ills an impo an gap in he li e a u e by
analyzing no only he co ela ion among hese a iables bu also he ela ionship be ween
en i onmen al inancial pe o mance and economic pe o mance, exp essed h ough ST,
TA, SOLV, and ATR. The p esen esea ch makes a heo e ical con ibu ion by expanding
he concep ual amewo k ega ding he ela ionship be ween en i onmen al and inancial
pe o mance by including mul iple inancial and pe o mance indica o s in he analysis.
The s udy p o ides s a is ical e idence on he impac o en i onmen al pe o mance
on inancial pe o mance, using an ex ensi e sample o companies om a ious economic
sec o s. The ob ained esul s can guide manage ial decisions ega ding esou ce alloca ion
o sus ainabili y policies, demons a ing ha well-managed ecological s a egies can b ing
abou signi ican economic bene i s (Nishi ani e al.,2017;Na ula e al.,2023;Soedja miko
e al.,2021). The e o e, in he long un, inc easing en i onmen al p o ec ion and imp o ing
en i onmen al pe o mance posi i ely in luence a company’s inancial pe o mance (Song
e al.,2017;Soedja miko e al.,2021;S. Zhang e al.,2019).
Empi ically, exis ing s udies p o ide mixed esul s. Fo example, a s udy conduc ed
by Flo ina-Mădălina Mocanu in es iga ed he ela ionship be ween inancial pe o mance
and co po a e go e nance p ac ices in Romanian banking companies, highligh ing he
impo ance o co po a e go e nance in achie ing inancial pe o mance (Mocanu & Lungu,
2021). The impac o co po a e go e nance p ac ices on inancial pe o mance is also
e ealed by o he s udies (Nguyen e al.,2021;Ong e al.,2019;Y. Xu & Zhu,2024;Nandini
e al.,2022). The indings o his s udy ha e signi ican implica ions. Scien i ically, hey
con ibu e o a deepe unde s anding o how en i onmen al ini ia i es can in luence
inancial pe o mance, p o iding a ounda ion o u u e esea ch. P ac ically, he esul s
can se e as a basis o de eloping co po a e policies and business s a egies, encou aging
companies o adop sus ainable p ac ices ha no only p o ec he en i onmen bu also
enhance inancial pe o mance.
In conclusion, his esea ch aims o cla i y he complex ela ionship be ween en i-
onmen al and inancial pe o mance, o e ing aluable insigh s o bo h he academic
communi y and p ac i ione s.
The s udy was designed as obse a ional esea ch aimed a iden i ying signi ican
co ela ions among a iables, which can p o ide aluable insigh s in o unde lying pa -
e ns and associa ions. Al hough no causal ela ionships we e es ablished, hese indings
se e as a ounda ion o u u e esea ch ha may employ expe imen al o longi udinal
designs o in es iga e causali y mo e igo ously. Es ablishing cause-and-e ec ela ionships
Adm. Sci. 2025,15, 103 23 o 31
would equi e addi ional me hodological app oaches, such as con olled expe imen s o
ins umen al a iable echniques.
Machine Lea ning Models in gene al, and Linea Reg ession in pa icula , a e all
designed o p o ide accu a e esul s (when s a is ical signi icance is p esen ) bo h o obse -
a ional and expe imen al se ings. In his pape , an obse a ional s udy was pu sued. This
means ha associa ion esul s we e always decla ed and, in no case, causali y was analyzed.
This was because Pea son co ela ion is sui able o one explana o y a iable, while a
g oup o i e explana o y a iables was deemed c ucial in ou analysis. Fu he mo e,
co ela ion-only analysis is no sui able o model selec ion. In conclusion, he use o a
linea eg ession model wi h e y s ong model selec ion echnique, unde co ec linea
assump ions, was he key o he esul s o he pape .
Sus ainabili y p ac ices a e becoming inc easingly impo an on a global scale, bu
he e a e signi ican di e ences be ween ends speci ic o Romania and in e na ional
ends. Analyzing hese aspec s in ela ion o applicable s a egies o Romanian companies
e ealed ha , in Romania, he implemen a ion o sus ainabili y s anda ds is p og essing
slowly in mos a eas. Rega ding enewable ene gy, global ends show a apid inc ease
in in es men s in sola and wind ene gy (Ku ba o a & Pe ede ii,2020;X. Xu e al.,2019;
Lanshina & Ba ino a,2017;Neja e al.,2013;J. Zhao e al.,2022), whe eas in Romania,
de elopmen in hese ca ego ies is slow bu g owing (Dumi a
s
,
cu e al.,2019;Raboaca
e al.,2020;Aceleanu e al.,2018). The same applies o he implemen a ion o ci cula
economy ac ions (Pion ek,2019;Holwe da e al.,2024;Topliceanu e al.,2023;Delcea e al.,
2024). Rega ding ESG epo ing, i is manda o y a he global le el (EU and USA), while in
Romania, implemen a ion is occu ing g adually and une enly. In wo o he ca ego ies
o sus ainabili y p ac ices, i.e., sus ainable anspo and social esponsibili y, ini ia i es
in Romania a e limi ed, especially among SMEs. Fo Romanian companies o emain
compe i i e and le e age global ends, hey should adop s a egies aimed a op imizing
ene gy consump ion h ough in es men s in mode nizing equipmen o ene gy e iciency
and ins alling sola panels. Addi ionally, hey should de elop ci cula economy p ac ices,
such as collabo a ing wi h supplie s using ecycled ma e ials and es ablishing p oduc
e u n and euse schemes. In e ms o alignmen wi h ESG s anda ds, companies should
ocus on publishing sus ainabili y epo s (e en olun a ily o SMEs) and in eg a ing
clea co po a e go e nance and e hics policies (Bunge e al.,2024;Dănilă& Nancu,2023;
Fleacăe al.,2023). Fu he mo e, inc easing social esponsibili y h ough CSR p ojec s in
educa ion and en i onmen al p o ec ion, as well as pa ne ships wi h NGOs and local
communi ies, is encou aged (Ma inescu,2020b;Pe escu e al.,2020;Mihai & Aleca,2023).
In conclusion, while Romania is g adually adop ing sus ainable p ac ices, he gap
compa ed o global ends can be educed h ough p oac i e s a egies. Romanian compa-
nies ha emb ace sus ainabili y will gain a compe i i e ad an age and enjoy easie access
o g een inancing and in e na ional ma ke s.
6. Conclusions
This pape aimed o iden i y and analyze he ela ionship be ween i ms’ inancial
pe o mance and non- inancial pe o mance (en i onmen al pe o mance) by employing a
s a is ical model ha adep ly in eg a es bo h inancial and non- inancial indica o s. The
s udy’s con ibu ion lies in co ela ing and p o iding a comp ehensi e o e iew o he
analyzed ela ionship be ween inancial and en i onmen al pe o mance, no ably h ough
he applica ion o econome ic models o subs an ia e he indings.
To achie e he pape ’s goal, a sco e o he dependen a iable En i onmen al pe -
o mance (c i e ion a iable) EP was calcula ed and included in he model as dependen
a iable, along wi h he ollowing inancial indica o s: ROA, ROE, Deb a io, Indeb -
Adm. Sci. 2025,15, 103 24 o 31
edness Deg ee, Capi al in ensi y, Equi y mul iplie , Labo p oduc i i y (independen o
p edic o a iables).
A key obse a ion o his s udy was he s a is ically signi ican posi i e co ela ions
be ween sales u no e and EP and i m age and EP, meaning ha highe u no e o
highe i m age is associa ed wi h o highe EP alues. This may suppo he idea ha
as companies g ow and de elop, hey can become mo e e icien in e ms o esou ce use
and inno a e o educe was e and emissions. Companies wi h a long his o y a e o en
mo e awa e o he impo ance o hei epu a ion. They may adop be e en i onmen al
p ac ices o p o ec hei image and demons a e social esponsibili y. Companies wi h
highe sales a e o en unde g ea e sc u iny and may be mo e mo i a ed o comply wi h
en i onmen al egula ions, leading o be e en i onmen al pe o mance.
In summa y, ou analysis aimed o iden i y he inancial indica o s ha signi ican ly
con ibu e o he en i onmen al pe o mance o companies subjec o sus ainabili y egu-
la ions. Thus, a model was cons uc ed om he independen a iables (p edic o s) ha
could bes es ima e he dependen a iable (EP). In he desc ip ion p o ided, his model
was exp essed by Fo mula (3). Collinea i y among he independen a iables was checked
by de e mining ole ance s a is ics. In he de e mined model, i was acknowledged ha
all independen a iables possessed su icien accu acy in explaining he dependen a i-
able. A de ailed explana ion o he in luence o each inancial indica o in he model on
en i onmen al pe o mance (EP) suppo ed he cons uc ion o he analysis model wi h he
ollowing indica o s: Sales u no e (ST), To al asse s (TA), Sol ency a io (SOLV), Asse
u no e a io (ATR), Fi m age (FA).
The ela ion be ween SOLV and EP was nega i e, indica ing ha lowe sol ency
co esponded o highe EP alues, implying ha dec easing sol ency alues migh inc ease
EP alues. Conside ing ha he sol ency indica o e e s o co e ing o al deb s om a
company’s asse s, his nega i e ela ionship can be explained by he company’s in e es
in spending mo e on e ooling and mode niza ion o achie e en i onmen al goals (W.
Zhang e al.,2021). Inc easing conce n o c ea ing en i onmen al s a egies o imp o e
clima e condi ions, educe emissions, ecycle was e, e c., leads o secu ing unding sou ces
om in es o s o c edi o s. Unde hese ci cums ances, companies may egis e high
deb s in he sho e m. This is unde s andable o he analyzed pe iod, gi en ha he
Eu opean Di ec i e on sus ainable epo ing s anda ds (CSRD) manda es hei applica ion
s a ing om he 2024 iscal yea o en i ies wi h o e 500 employees al eady applying
non- inancial epo ing (NFRD).
The ela ion be ween ATR and EP was nega i e, meaning ha lowe ATR alues
co espond o highe EP alues, indica ing ha dec easing ATR alues migh inc ease EP
alues. Simila ly, he in luence o he Asse Tu no e Ra io (ATR) may be explained by
in es men s in g een echnologies, which a e mo e expensi e and ha e a long li espan.
These in es men s inc ease he o al alue o asse s bu do no immedia ely gene a e
addi ional e enue (Gu,2021;Nishi ani e al.,2017), he eby educing asse u no e .
Also, highe ope a ional cos s may occu when implemen ing en i onmen al p o ec ion
measu es, like using ecycled ma e ials o less pollu ing p oduc ion p ocesses.
F om he eg ession model, one can conclude ha i e ou o he wel e inancial
indica o s included in he model ha e a s a is ically signi ican in luence on en i onmen al
pe o mance (EP), namely SOLV, FA, TA (signi ican ), ATR, and ST ( e y signi ican ).
The e o e, i can be concluded ha he p oposed model is signi ican , e ec i ely
demons a ing he s a is ical ela ionship be ween he i e a o emen ioned inancial indica-
o s and he non- inancial (en i onmen al) pe o mance o he sample companies.
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