sustainability

Article
Impact of Non-Financial Information on Sustainable
Reporting of Organisations’ Performance: Case Study
on the Companies Listed on the Bucharest
Stock Exchange
Mariana Man 1 and Maria-Mădălina Bogeanu-Popa 2, *
1 Faculty of Sciences, University of Petros, ani, 332006 Petros, ani, Romania; [email protected]
2 Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania
* Correspondence: [email protected]; Tel.: +40-721-980-772




Received: 15 February 2020; Accepted: 8 March 2020; Published: 11 March 2020


Abstract: The influences resulted from the strategy of sustainable development of a country represents
a challenge for both the research and all those interested. This paper researches how the non-financial
information is relevant in reflecting the sustainability of Romanian economic entities’ performances.
In this context, reference is made to the Bucharest Stock Exchange (BVB) and to the extent that
the economic entities listed at the stock exchange draft sustainable reports in compliance with
the international reporting requirements. The hypotheses formulated are related to the specific
characteristics of the economic entities listed on the BVB. The research was done on a sample consisting
of all economic entities contained by the International Reporting System of Issuers (IRIS) platform of
the BVB, the sustainable reporting was analysed through the Pearson correlation coefficient and the
ANOVA test. Following the research, results were obtained that made it possible to validate/invalidate
the hypotheses. One of the specific characteristics that has been noted refers to the size of the economic
entity; this has been shown to influence the extent to which the sustainable report drafted complies
with the requirements of the international reporting frame.

Keywords: the non-financial information; integrated reporting; sustainable reporting; organisation’s

performance

1. Introduction
Currently, there are many initiatives regarding the sustainability standards in all fields of activity.
One of the most widespread reporting models at European level is Global Reporting Initiative (GRI),
which introduces a set of standards accepted at global level regarding the sustainable reporting [1].
This reporting has been created by the International Council for Integrated Reporting (IIRC), whose
main task is to develop the standards and implicitly assist the development of the environment for
reporting the sustainability [2].
The impact of non-financial information on determining, reporting, and analysing the performance
of an economic entity increases the public and political interest on this matter. The non-financial
information is governed on the good practices existing in the business environment. They maintain
the transparency and integrity of reporting entities, being the basic elements at a European level to
transpose the sustainable reporting. The level of the non-financial performance is given by three types
of reporting: social responsibility, environmental, and personnel responsibility [3]. Moreover, besides
addressing these elements, at the entity level, it is required to present the business model, the entity’s
policy, the results of applying the policies, the risks existing in the entity’s activity, and way of action to
counteract the risks. These elements are detailed in Figure 1, which represents the author’s projection.

Sustainability 2020, 12, 2179; doi:10.3390/su12062179 www.mdpi.com/journal/sustainability

Sustainability 12, 2179
2020, 2020,
Sustainability 12, x FOR PEER REVIEW 3 of 16 2 of 15

Figure 1. Representation of the elements specific to integrated reporting.

Figure 1. Representation of the elements specific to integrated reporting.
Sustainability 2020, 12, 2179 3 of 15

The performance of the economic entity also involves additional explanations, if they are
considered to be necessary, but without giving up the mandatory elements to be presented through the
legal regulations in force [4].
The economic sustainability of the entity generally refers to its capacity to achieve profit from
its activity [5]. Preserving the quality of life is the responsibility of economic sustainability, and to
achieve this objective, a change is required regarding the unsustainable consumption models, but
also regarding the production methods [6]. The sustainable lifestyle is subordinated to the living
conditions, which is why the ecological economy is promoted, which comes as a result of implementing
the economic sustainability. An ecological economy requires the creation of renewable resources and
permanent monitoring of the emissions that cause a negative environmental impact [7]. The results of
the economic entity are according to the economic sustainability, closely related to the environment
and social sustainability [1].
The particularities of the sustainability and of the sustainable development strategy depend on
the capacity of the economic entity to be sustainable. This is conditioned by the social and natural
environment, in other words, it is required that the entity would make considerable efforts in order
to be sustainable. The strategic sustainability implies that the higher management level would be as
efficient as possible so that the risks involved would be minimised and removed as far as possible [8].
From this point of view, sustainability becomes a component of the entity’s strategy, an approach
which implies that the sustainable elements would be objectives of the entity. Thus, a strategy of the
sustainable development requires the management to take into account both short-term and long-term
perspectives. Moreover, it is required that the sustainable development strategy would be correlated
with the entity’s activities and be capable to adapt to the constantly changing environment [2]. This is
possible only if the entity’s approach is responsible and takes into account the potential risks that may
influence its strategy [9].
The reason why the entity must be open to new exploration horizons is that it allows it to
access the capable strategy of exploiting the opportunities that arise. The strategy of sustainable
development implies a clear purpose reflected in the culture and the desire for change [10]. All this is
happening because sustainability involves a collaboration with those from the outside and to attract
them as strategic partners of innovation. The transparency, openness, and orientation towards success
in relation to the individuals interacting with the entity leads to acquiring the trust and mutual
understanding. The entity must interact in order to collect new ideas and in order to acquire external
opinions and make the required adjustments for sustainable development [11].
Sustainability is a process governed by change, allowing the use of the resources, the direction of
investments and technological development. Through these aspects, institutional transformations are
in harmony and lead towards increasing the human potential, aspirations, and needs both currently
and in the future [12]. In this direction, the international economy has an important role, because
major changes are required in terms of international economic relations created in order to ensure
sustainability. This is seen as a way of approaching the business model in a broad sense and of creating
value within the entity, supporting the planning of long-term goals [11].
Sustainable development is characterised as a complex operation with implications and aspects
that cannot be neglected because they are necessary for a better understanding of the phenomenon.
It has been proven over time that sustainability has aroused the interest for several fields of activity.
Once things are clearly established, it should be noted that the financial reporting of an economic entity
and the sustainability report should be included within an integrated report is not a sufficient thing,
but their interaction is required. Even though some information may be provided independently of
each other, through the business strategy, it is required to create a close link between the elements.
In order to promote such a strategy, the entity must establish the relevance that the sustainability actions
have for its activity, to establish its priorities, risks, opportunities, and impact by which sustainability
influences the financial performance [2].
Sustainability 2020, 12, 2179 4 of 15

Adopting the integrated reports internationally in order to reflect the non-financial performance
of economic entities had an impact firstly on the entities listed on the stock exchange, as they are
considered to have the greatest interest for third parties. This was the reason why the Romanian
economic entities are addressed, which are listed on the Bucharest Stock Exchange (BVB).

2. Literature review
A sustainable approach is a concept of development whereby all actions would be directed to the
environment, socially correct, and economically possible [13]. In French literature, sustainability is
associated with the term of social responsibility and sustainable development. By this, it may be said
that social responsibility is given by the entity’s efforts for sustainability and sustainable development.
Starting from these considerations, economic entities analyse the effects they have on the environment
and act in this regard to contribute to the progress of society from all points of view, taking into account
social, environmental, and personnel aspects [14].
From the studies carried out on the sustainable reporting, it has been proven that sustainability
has three dimensions and they interact with each other [15]. The dimensions of sustainability refer to
environmental, social and economic aspects. Moments of crisis appear in an economy, and the reasons
for the crisis are in the hypothesis of the failure of markets, the hypothesis of the government and the
hypothesis of a continued prosperity [16]. The conclusion of these hypotheses is given by the fact that
the results of negative effects and implicitly the crisis is a consequence of the lifestyle and a new model
of development should be used [17].
The sustainability development models involve the use of systematic tools for the development
of future generations, provided that the use of resources is met [18]. It is considered that an increase
of the interest for the non-financial information is due to credibility [19]. A new concept brought to
bring together the sustainable reporting principles has been development in the form of integrated
reporting [20].
The entities’ attention towards a promising future has a favourable impact on the community,
a goal that may be reached through the fact that entities become sustainable [21]. To be able to meet
this challenge, the entities act by integrating the sustainability policy into their own strategies in order
to reach the desired performance. Some authors believe that sustainability may be truly integrated into
the entity’s strategy and operations, if it goes through all the process stages to ensure the sustainability
and develops new abilities to easily solve the challenges that have arisen [22]. Other authors consider
that sustainability is the key towards a process consisting of several stages in order to achieve an
environmental sustainability [23].
It is considered that sustainability is obtained after a long development process [24].
A process consisting of several stages is proposed and consists of: pre-conformation, conformation,
post-conformation, integrated strategy and passion, and finally, the purpose [25]. Conformation is
actually considered, and the opportunity the entity has as a result of submitting the legal regulations or
voluntarily adopting certain rules of ethical conduct [13]. Adopting a minimum of standards regarding
the economic, social, and environment field is insufficient, taking into account that the entities succeed
to adopt the most exigent rules to comply with [26].

3. Methodology of the Research

In order to achieve the research, two research methods were used: qualitative and quantitative
research, respectively. Through the qualitative research, we could collect and analyse data not
represented by numbers, the former being of exploitation and understanding character. The processes
are described without interfering with them and important characteristics of a subject are emphasised.
In the qualitative research, the description was used to identify characteristics and establish existing
links. Through quantitative research, we could collect and process the data and the results of processing
the data could be emphasised. Through the data volume presented, processing the results was relevant.
The goal of this paper aims to establish the relevance of the non-financial information included in the
Sustainability 2020, 12, 2179 5 of 15

sustainable reports for assessing the performance of economic entities listed on BVB and included on
the International Reporting System of Issuers (IRIS) platform.
Because all economic entities on the IRIS platform of the BVB elaborate integrated reports, we
intend to verify to what extent these reports comply with the requirements of the IRC database. All this
will be done through an index of presenting the information. Generally, the characteristics specific to
the entities listed on the BVB refer to the market value, trust, visibility, image, etc. In this study, we
started from identifying the non-financial information that allows tracing the characteristics specific to
the entities listed on the BVB:

• Cs 1 – the dimension of economic entities;

• Cs 2 – the weight of individuals involved in drafting the sustainable report, in total, of employees;
• Cs 3 – the involvement of the same individual in decision-making and execution actions in terms
of the sustainable reports;
• Cs 4 – the replacement of a decisional individual in the sustainable reporting period;
• Cs 5 – the percentage of external personnel who ensures the reporting.

Once the non-financial information is identified, based on which the characteristics specific to the
entities listed on BVB have been created, two hypotheses were formulated:

Hypothesis 1 (H1 ): The characteristics specific to the entities listed on the BVB, symbolised by Cs 1, Cs
2, and Cs 5, influence the extent to which the integrated report is drafted according to the reporting
framework specific to the integrated reporting.

Hypothesis 2 (H2 ): The extent to which the integrated report is drafted according to the international
reporting framework is not influenced by the specific characteristics, symbolised by Cs 3 and Cs 4.

Validating/invalidating the variables depended on the results of the models applied. The data is a
part of the category of statistical data, published periodically by the economic entities concerned or
by various bodies. The sources for the data acquisition are of official character, being subsequently
processed in order to verify the validation or invalidation of the hypotheses.
The data were collected through various techniques, respectively concepts specific to an empirical
research, establishing the various sources in order to collect as much data as possible and increased
attention as to the data not to be wrong or incomplete, which would lead to erroneous results. In order
to acquire accurate data, the quantitative research predominated in the case study. Through the data
volume presented, processing the results was relevant. This was materialised in the data shown in the
tables, discussions, and conclusions, the information being able to be analysed statistically.

4. Assessing the Sustainable Reporting of the Organisations listed on the Bucharest Stock
Exchange (BVB). Case study
The role of integrated reports and implicitly non-financial reports is to facilitate the understanding
by the financial capital suppliers of how the entity creates short-, medium-, and long-term value.
This is done based on the resources of the economic entity, such as the financial and production capital,
intellectual, human, and social capital and the natural capital, but also of the relations between these
elements [27]. Therefore, it can be said that a sustainable relation consists of the environmental relation,
the social responsibility relation, and other non-financial relations. Thus, we can look for the possible
correlations between the non-financial reporting and the characteristics specific to the organisations
listed on the (BVB). This sample consisting of part of the entities listed on the BVB, through the annual
transparency statements presented. In this case, transparency is not seen only in terms of publishing
the reports, but also in terms of their quality.
BVB has the main role in facilitating the cash flow towards capital investors to entrepreneurs
that need capital in order to develop the business. The entities listed on the stock exchange enjoy
Sustainability 2020, 12, 2179 6 of 15

more than the advantage of the access to the capital, enjoying the image improvement, permanent
publicity, visibility in relation to customers, partnership, and prestigious advantages in the community.
By their specificity and mutual characteristics, the entities listed on the stock exchange are those that
mandatorily publish financial, governance, and social responsibility information as a sustainable report.
These economic entities may be considered a landmark also through the conditions imposed by the
listing on the stock exchange. The legislative causes, market requirements, and social expectations are
added to these. The negative aspects that can prevent the entity from complying with the required
rules should not be neglected either. The competition, the unavailability of data, the cost-benefit
analyses or public perception can be interpreted as obstacles that cause negative effects. By confronting
these causes, the content and its quality is outlined, by observing the organisational reporting practices.
The consequence of this process is the creation of an improved image, a performance improvement
and not last, the economic development. Thus, they can represent the reasons why the entities listed
on the BVB can be considered a standard of transparency.
For the listed entities, BVB has launched a reporting system called International Reporting System
of Issuers (Sistem Internat, ional de Raportare a Emitent, ilor (IRIS)). It is a platform at the highest
standards for the public and efficient public exposure of reports and announcements to the interested
ones. The purpose of the platform is to standardise the reporting manner and to increase the market
transparency degree by implementing a secure and credible system of communications that could
permanently ensure the access to information. This actually involves an integrated format of reports,
available and accessible to process the data [20].
The characteristics of the IRIS platform are mainly rendered by attributes such as flexibility, ease,
and accessibility. Flexibility is given by the possibility to access the platform from any device that has
access to the Internet. The easiness is given by the interface for presenting the information uploaded
on the platform. Accessibility is given by the possibility to edit and review the ads online before they
are uploaded to the platform [28].
IRIS is a platform that aims to increase the market transparency by providing a communication
system characterised by rapidity, security, and reliability, all these in order to disseminate the issuers’
reports in a text format accessible to be processed for those uploading the documents [28]. It is able to
provide the issuers with a mechanism at the highest international standards, which has a new, rapid,
and efficient operating system in order to publicly disseminate the reports or certain announcements of
interest in the economic entity. For investors, stock exchange data analysts, or distributors, the platform
is an integrated information system, available in an accessible and workable format. The manner
of uploading the reports takes the form of Microsoft Word, which can have additional documents
attached also in another form such as PDF, which can consist of information such as tables, graphics
shown in a special design, including holographic signed documents [28].
The main goal of this platform is to ensure a high level of standardisation in relation to the
reporting manner. This product has the advantage to be easily integrated and processed, which turns
it into an efficient system of determining the price. By designing and launching this product, BVB
proves it makes efforts for the alignment to the highest standards and best market practices. It is worth
appreciating the effort made to make available for the listed economic entities an efficient means of
communication that allows the investors more complete and rapid information. By using the BVB
channels, meaning the IRIS information distribution platform, the publication of reports and processing
thereof on the financial portals, a global distribution will be ensured, where the investors of issuers
listed on the BVB will be the centre of attention.
One of the BVB goals is that the IRIS platform would represent the key tool through the use of
which the communication with the shareholders, analysis, and investors would be improved for the
alignment to the international standards and increase the degree of transparency [28]. This platform
brings the issuers listed on the BVB to the attention of investors. Of the entities listed on the BVB on
the Regulated Market, after analysing the IRIS platform at the end of 2019, it was observed that it
includes only a number of 15 economic entities, which periodically transmit the reports drafted [29–43].
Sustainability 2020, 12, 2179 7 of 15

The 15 economic entities included on the IRIS platform may be found in Table 1, which represents the
author’s projection.

Table 1. List of economic entities listed on the Bucharest stock exchange (BVB), included on the
International Reporting System of Issuers (IRIS) platform.

No. Name of Economic Entity Listed on the BVB Symbol Activity Entity
1 Banca Transilvania TLV Banking services
2 BRD—Groupe Societe Generale BRD Banking services
3 Bucharest Stock Exchange BVB Market maker
4 Transelectrica TEL Electricity transmission
5 Fondul Proprietatea FP Financial investments
6 OMV Petrom SNP Oil and gas production
7 Nuclearelectrica SNN Electricity production
8 Romgaz SNG Oil and gas production
Natural gas
9 Transgaz TGN
transportation
10 Electrica EL Electricity distribution
11 SIF Banat Cris, ana SIF 1 Financial investments
12 SIF Moldova SIF 2 Financial investments
13 SIF Transilvania SIF 3 Financial investments
14 SIF Muntenia SIF4 Financial investments
15 SIF Oltenia SIF 5 Financial investments

Because most of the entities listed on the BVB are non-financial information within a sustainable
report, our intention is to verify to what extent these reports comply with the information of the
IRC database. This will be done on the sample of the 15 entities using the IRIS platform, through
an index of presenting the information. In a broad sense, the sustainable report of the economic
entities involves aspects such as environmental reporting, social and corporate responsibility, meaning
elements that create value over time. By this case study, we want to find the possible correlations
between the exposure of a sustainable report and the characteristics specific to the economic entities.
If it is not subject to the legislation in force, the economic entity is not bound to draft a comprehensive
report; however, when the information is relevant, many entities choose to draft the reports voluntarily.
The supply of additional information by an economic entity attracts investors. Certain characteristics
of the economic entity can influence the voluntary adoption of sustainable reports in compliance with
the international reporting framework.
In order to test the possible correlations between the extent to which the sustainable report drafted
meets the IIRC recommendations on the one hand, and the characteristics specific to the entities listed
on the BVB, on the other hand, the following variable are used:
• The dependent variable (DI): The extent to which the entities’ report is presented in compliance
with the IIRC, estimated by an index to present the information;
• Independent variable: The characteristics specific to the entities listed on the BVB.
The dependent variable is constituted based on the IIRC framework. In order to establish the
index for presenting the information, elements from the IIRC have been taken into account and thus,
six type of capitals (financial capital, natural capital, social capital, production capital, intellectual
capital, human capital) are taken into account, content elements being considered the basis of the
guiding principles, and information on auditing the report is added thereto, in terms of integrated
reporting. The last aspect has been added and taken into account because, similar to the financial
reports, integrated reports are also required to be comparable and credible and for this to be possible,
it is required to ensure the integrated report [20]. Having said all this, it is desirable that the insurance
opinion would be a positive one, because it will provide assurance of the basic models, methodologies,
and procedures based on which the sustainable report has been created, rather than an opinion on the
accuracy of information.
Sustainability 2020, 12, 2179 8 of 15

To constitute the dependent variable, it was verified whether the report the economic entity has
published presents elements regarding: The presentation of the entity and external environment;
The description of the business model; The governance; The opportunities and risks; The business
strategy and resources the entity has; The entity’s performance; The basis for the elaboration and
presentation of the report; Presentation of the report; The presence of the six types of capital; Auditing
the integrated report.
Of what has been presented, each of the aforementioned elements is a binary variable. If a report
has presented a certain element, the variable has taken the value 1, otherwise, the variable has the
value 0. These principles have also been applied when it was verified whether the entity has presented
information in relation to the six types of capital which by its activity could be applicable to the
business model and variable is assigned thereto, and otherwise variable 0 has been assigned thereto.
The same model has also been used in relation to the verification of the integrated report if this has
been audited, receiving for the value of variable 1 in the favourable case also the value of the variable
0 otherwise. Table 2 presents the establishment of variables for six types of capital and the variable
given to auditing the integrated report. Table 2 represents the author’s projection.

Table 2. Determining the variables of the six types of capital and of auditing the integrated report.

Financial Production Natural Human Social Intellectual Auditing the

Name of the Entity Symbol
Capital Capital Capital Capital Capital Capital Integrated Report
Banca Transilvania TLV 1 1 1 1 1 1 1
BRD – Groupe
BRD 1 1 1 1 1 1 1
Societe Generale
Bucharest Stock
BVB 1 1 1 1 1 1 1
Exchange
Transelectrica TEL 1 1 1 1 1 1 1
Fondul Proprietatea FP 1 1 1 1 1 1 0
OMV Petrom SNP 1 1 1 1 1 1 1
Nuclearelectrica SNN 1 1 1 1 1 1 1
Romgaz SNG 1 1 1 1 1 1 1
Transgaz TGN 1 1 1 1 1 1 1
Electrica EL 1 1 1 1 1 1 1
SIF Banat Cris, ana SIF 1 1 1 1 1 1 1 0
SIF Moldova SIF 2 1 1 1 1 1 1 0
SIF Transilvania SIF 3 1 1 1 1 1 1 0
SIF Muntenia SIF4 1 1 1 1 1 1 0
SIF Oltenia SIF 5 1 1 1 1 1 1 0
1= 15 15 15 15 15 15 9
0= 0 0 0 0 0 0 6

To verify some characteristics specific to the entities listed on the BVB, the same principle was
used, so that, for the specific characteristic CS 3, the value 0 was assigned if no change has been made,
and the value 1 was assigned if change has been made. The same procedure was applied also in the
case of the specific characteristic Cs 4, if this case is confirmed, the value of variable 1 is assigned, and
if not, the value of variable 0 is assigned. For specific characteristics Cs 1, Cs 2, Cs 5, the data have
been collected or the percentages have been calculated according to the information the economic
entities provide. Thus, if an economic entity has presented all the content elements, whereto we add
information regarding the six capitals and information on the drafted report audited as sustainable
report, the entity was given the value score of 10, according to Table 3.
Sustainability 2020, 12, 2179 9 of 15

Table 3. Dependently creating the variables.

The
The
Presentation of Opportunities The Business The Elaboration Basis The Presence of Auditing the
Description of The Entity’s Report
Name of the Entity Symbol the Entity and Governance and Strategy and and Report the Six Types of Integrated DI
the Business Performance Presentation
External Risks Resources it Has Presentation Capital Report
Model
Environment
Banca Transilvania TLV 1 1 1 1 1 1 1 1 1 1 1
BRD – Groupe
BRD 1 1 1 1 1 1 1 1 1 1 1
Societe Generale
Bucharest Stock
BVB 1 1 0 1 1 1 1 1 1 1 0.9
Exchange
Transelectrica TEL 1 1 1 1 1 1 1 1 1 1 1
Fondul Proprietatea FP 1 1 0 0 1 1 0 0 1 0 0.5
OMV Petrom SNP 1 1 1 1 1 1 1 1 1 1 1
Nuclearelectrica SNN 1 1 1 1 1 1 1 1 1 1 1
Romgaz SNG 1 1 1 1 1 1 1 1 1 1 1
Transgaz TGN 1 1 1 1 1 1 1 1 1 1 1
Electrica EL 1 1 1 1 1 1 1 1 1 1 1
SIF Banat Cris, ana SIF 1 1 1 1 0 0 0 0 0 1 0 0.4
SIF Moldova SIF 2 1 1 1 0 0 0 0 0 1 0 0.4
SIF Transilvania SIF 3 1 1 1 0 0 0 0 0 1 0 0.4
SIF Muntenia SIF4 1 1 1 0 0 0 0 1 1 0 0.5
SIF Oltenia SIF 5 1 1 1 0 0 0 0 0 1 0 0.4
0.067

Table 3 is made by authors and it represents their vision.

Sustainability 2020, 12, 2179 10 of 15

One of the advantages of using an index for presenting the information there is that it measures
and compares the information exposed in reports with the maximum level of information that could be
exposed by the economic entity. The dependent variable assesses to what extent the reports analysed
are drafted and presented according to the IIRC reporting framework.
The formula to calculate the dependent variable is:

DI = (d1 +d2 +d3 + . . . )/(di1 +di2 +di3 + . . . ) where d = 1,m and di = 1,n (1)

Where:
DI = the index to present the information, DI [1,0]
Di Di = 1, if the element is presented;Di Di = 0, if the element is not presented;
m = the number of elements presented;
n = the maximum number of elements analysed.
The data have been collected for each economic entity individually from the reports uploaded
and available on the web pages of their own entities or from the web page of IIRC. Within the sample,
the aim was to publish the reports starting with 2016 until now.
In order to perform the research and to establish the correlations between the dependant variable
and independent variables, we used the Pearson correlation coefficient and the ANOVA test and used
the SPSS and Excel applications in order to process the data.
In order to measure the connection between the quantitative variables, we used the Pearson
correlation coefficient; this is a linear correlation coefficient likely to define the interdependence or
connection between the variables. Should the value of the Pearson coefficient be close to 1 in the
absolute value, the greater will be the linear relation between the two variables. Besides the Pearson
correlation coefficient, the ANOVA test has also been used. Through it, the differences existing between
variables will be tested and the hypotheses will be validated or invalidated. The advantage of using
the ANOVA test consists in emphasising the significant differences between averages, but the results
are present also if there are no significant differences between the averages.
In order to establish the Pearson correlation coefficient, the variables must have a normal
distribution, this being a parametric coefficient. In order to establish the sample distribution, the
Kolomogorov–Smirnov test was used. This is a non-parametric test of distribution equality, often used
to compare a sample with the distribution of the reference probabilities or to compare two samples.
In our research, we applied the Kolmogorov–Smirnov test, and the results thereof are shown in
Table 4, which represents the author’s projection.

Table 4. Sample distribution.

DI
Population 15
Average 0.77
Normal parameters
Standard deviation 0.28
Asymp. Sig. (2-tailed) 0.39

Based on the results acquired, it may be said that the distribution is a normal one, the level of test
significance being 0.39, greater than 0.05. The same thing may be also said in the case of calculating
the normal parameters, meaning the average (0.77) and the standard deviation (0.28). The variation
coefficient is of 36.36%, meaning greater than 35%, which results in a heterogeneous collectiveness.
In order to analyse the possible correlation between DI and the independent variables, the Pearson
correlation coefficients and the ANOVA test have been used and the two previously formulated
hypotheses have been taken into account: hypothesis 1: The characteristics specific to the entities listed
on the BVB: Cs 1, Cs 2, and Cs 5 influence the extent to which the integrated report is drafted according
to the reporting framework specific to the integrated reporting and hypothesis 2:
Sustainability 2020, 12, 2179 11 of 15

The extent to which the integrated report is drafted according to the international reporting
framework is not influenced by the specific characteristics of Cs 3 and Cs 4.
In Table 5, the determination of the independent variables according to the dependent variable.
Table 5 represents the author’s projection.

Table 5. The determination of the independent variables according to the dependent variable.
The Involvement of
The Weight of the the Same Individual The Share of the
Dimension The Replacement of
Individuals in Decision-Making External
Name of the of the a Decision-Making
Symbol DI Involved in and Execution Personnel Who
Economic Entity Economic Individual during
Drafting the Actions on Provides
Entity the Reporting Period
Sustainable Report Sustainable Reporting
Reporting
Banca Transilvania TLV 1 9014 0.33 1 0 0.05
BRD – Groupe
BRD 1 7552 0.34 1 0 0.06
Societe Generale
Bucharest Stock
BVB 0.9 103 6.8 1 0 0.01
Exchange
Transelectrica TEL 1 2102 1.43 1 0 0.02
Fondul Proprietatea FP 0.5 5 0 1 0 100
OMV Petrom SNP 1 13000 0.19 1 0 0.2
Nuclearelectrica SNN 1 2058 0.87 1 0 0.02
Romgaz SNG 1 2414 0.62 1 0 0.02
Transgaz TGN 1 4284 0.37 1 0 0.03
Electrica EL 1 7995 0.29 1 0 0.05
SIF Banat Cris, ana SIF 1 0.4 34 11.76 1 0 0.01
SIF Moldova SIF 2 0.4 34 11.76 1 0 0.01
SIF Transilvania SIF 3 0.4 45 13.33 1 0 0.01
SIF Muntenia SIF4 0.5 36 8.33 1 0 0.01
SIF Oltenia SIF 5 0.4 47 10.64 1 0 0.01

Through the characteristic The dimension of the economic entity entity (Cs1), we refer to the
number of employees; for the characteristics The percentage of individuals involved in drafting the
sustainable report, to the total of employees (Cs2) and the Percentage of external personnel to provide
reporting (Cs5) calculations based on the data acquired have been made; for the characteristics The
involvement of the same individual in decisional and execution actions in terms of the sustainable
reporting (Cs3) and the Replacement of a decision-making individual during the reporting period
(Cs4), binary variables have been used. By using the Pearson correlation, in order to test the correlation
between the dependent variable and qualitative independent variables, the following results shown in
Table 6 resulted. Table 6 represents the author’s projection.

Table 6. The results obtained as a result of the Pearson correlation coefficient application.

The Pearson Correlation

The Dependent Variable (DI) SIG. (2-tailed)
Coefficient
Entity dimension 0.67 0.78
The percentage of individuals involved in drafting
−0.84 0.82
the sustainable report, to the number of employees
The percentage of external personnel who provides
−0.26 0.49
reporting
N 15

In order to interpret the results acquired, it is required to detail and specify the following
explanations: a positive Pearson correlation coefficient implies the existence of a direct connection
between the variables, and a coefficient of negative value involves an indirect connection between
the variables. Regarding the value of the coefficient, if it is found in the 0–0.3 range, the connection
is a weak one, a coefficient between 0.3–0.7 implies an average intensity connection, and a strong
connection is achieved when the coefficient is within the 0.7–1 range.
Thus, a direct correlation has been identified only in the case of the entity’s dimension, the Pearson
correlation coefficient is of 0.67, which proves a direct connection of average intensity. Regarding the
Sustainability 2020, 12, 2179 12 of 15

level of significance it has, because it exceeds the 0.05 and 0.01 range, having a value of 0.78, we can
say that the result is a statistically insignificant one.
The same reasoning was also applied for the other variables, which result in negative values,
which implies the existence of an indirect connection between variables. Through the significance
level, values leading to a statistically insignificant result arose, both in the case of Cs2—the percentage
of individuals involved in drafting the sustainable report and in the case of Cs5—the percentage of
external personnel to provide reporting.
In order to analyse the quantitative variables, Cs3—the involvement of the same individual in the
decision-making and execution function in terms of integrated reporting, and Cs4—the replacement of a
decision-making individual during the sustainable reporting period, in correlation with the dependent
variable, the ANOVA test was used, according to Table 7, which represents the author’s projection.

Table 7. The results obtained as a result of the ANOVA test application.

The Dependent Variable (DI) Sig

The involvement of the same individual in decision-making and execution actions in terms of the
0.62
sustainable reports;
The replacement of a decision-making individual during the sustainable reporting period 0.12

By the results observed in the table, we observe how the significance levels for both variables
analysed exceed the value of 0.05. Therefore, the variable Cs3—the involvement of the same individual in
the decision-making and execution function in terms of integrated reporting, nor Cs4—the replacement
of a decision-making individual during the sustainable reporting period does not influence the extent
to which drafting a sustainable report is achieved according to the international framework, this being
expressed through the dependent variable.
However, we observed direct correlations on both variants. In the case of the variable Cs3—the
involvement of the same individual in the decision-making and execution function in terms of
integrated reporting, with a value of 0.62, it is a matter of an average intensity connection, and in
the case of variable Cs4—the replacement of a decision-making individual during the sustainable
reporting period, with a value of 0.12, a low intensity connection, both of them expressed through the
dependent variable.

5. Discussions and conclusions

With time, the subject of sustainabilty has been an intensly debated one and of permanent actuality
and the economic entities have given an even bigger importance to the sustainable development which
embraced numerous approaches. The risen interest in the sustainable reporting of the performance
reflects through the non-financial information the economic entities provide. The complexity of
the economic entities founds its answer in the drafting of the integrated report. Accomplishing as
many sustainability elements as possible impose the economic entites to analyze in detail the interest
indicators for the investors and to analyze at the international standards of integrated reporting IIRC.
This paper is an empirical research based on the direct observation of the reality. The methods
used in the research have been both of qualitative order and quantitative order. It was decided to
use the two research methods presented, because only in this way could the theoretical aspects be
explained and the results obtained through the quantitative research could be interpreted. The research
was carried out at the level of Romania, being focused on the entities listed on the Stock Exchange
and included on the IRIS platform. Thus, we noticed that there are 84 economic entities listed on
the BVB on the Regulated Market in Romania. In order to support the economic entities’ manner of
reporting, BVB has launched an issuers’ platform represented by the IRIS system. Of all the economic
entities listed, at the end of 2019, only 15 economic entities have joined this platform, choosing to
periodically send the sustainable reports drafted. Thus, we focused our attention on the reports of the
15 economic entities, following the impact which the non-financial information has on the sustainable
Sustainability 2020, 12, 2179 13 of 15

reports drafted periodically by them. The research started by formulating two hypotheses, and to find
out whether they are validated or not, we used the results of the econometric models: the Pearson
correlation coefficient and the ANOVA test. Following the analyses carried out, we may establish the
validation or the invalidation of the hypotheses issued.
The hypothesis 1 (H1 ) is invalidated because not all the specific characteristics taken into account
involve the existence of a direct connection between the variables. Only in the case of the characteristic
Cs1—the dimension of the economic entity, the Pearson correlation coefficient is of 0.67, which proves
a direct connection of average intensity. In the case of the characteristic Cs 2—the percentage of
individuals involved in drafting the sustainable report, as well as in the case Cs 5—the percentage of
external personnel to provide reporting, there is no correlation because negative values have been
recorded, which involves the existence of an indirect connection between variables, according to the
data shown in Table 6—the Pearson correlation test.
The hypothesis 2 (H2 ) is validated because through the results of the ANOVA test, significance
levels are recorded for both the specific characteristics. Both for the characteristic Cs 3—the involvement
of the same individual in decision-making and execution actions in terms of sustainable reports, as
well as for Cs 4—the replacement of a decisional individual during the sustainable reporting period,
according to the data in Table 7—the ANOVA test, the values registered exceed the 0.05 threshold,
which proves that these two specific characteristics do not influence the extent to which the elaboration
of a sustainable report is done according to the international framework.
By validating/invalidating the hypotheses, we observed that in terms of the economic entity’s
dimension, the larger it is, the better it will comply with the requirements of the international
reporting framework.
We considered that drafting a report should not be conditioned by the entity’s performance.
This way of reporting the performance requires the improvement of the quality of all information,
notably the improvement of non-financial information and leads to a much more efficient and
productive allocation of the capital. Moreover, the tendency of the non-financial information to become
standard is noted. We assess that the main limits of this study were related to the sample size and to
choosing the independent variables. Possible future researches could take into account other variables
that include the economic, legal, and cultural characteristics.
In conclusion, by means of this research, we wanted to identify the non-financial information
that reflect the specific characteristics of the economic entities listed on the BVB and the analysis of
the extent to which they are influenced in drafting the sustainable report, in compliance with the
requirements of the international reporting framework. The results obtained are influenced by the
lack of the obligation to meet the international reporting framework and the flexible way in which
the principles and recommendations are addressed and can be taken from the framework. It is worth
mentioning that a sustainable report containing a set of non-financial information is an element of
novelty and an exercise involving training for the organisations involved in the reporting process.

Author Contributions: Conceptualization, M.M. and M.-M.B.-P.; methodology, M.-M.B.-P.; software, M.-M.B.-P.;
validation, M.M. and M.-M.B.-P.; formal analysis, M.-M.B.-P.; investigation, M.-M.B.-P.; resources, M.-M.B.-P.;
data curation, M.-M.B.-P.; writing—original draft preparation, M.-M.B.-P.; writing—review and editing, M.M.;
visualization, M.M.; supervision, M.M.; project administration, M.M. All authors have read and agreed to the
published version of the manuscript.
Funding: This research received no external funding.
Acknowledgments: This work was supported by the grant POCU380/6/13/123990, co-financed by the European
Social Fund within the Sectorial Operational Program Human Capital 2014 – 2020.
Conflicts of Interest: The authors declare no conflict of interest.
Sustainability 2020, 12, 2179 14 of 15

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