Esg reporting implications for road carriers' financial outcomes

Until the end of 2023, European legislation does not impose an obligation but provides freedom to companies whether to implement ESG reporting. The conceptual idea of the study is to verify whether and to what extent non-financial ESG reporting of companies - road transport companies, has an impact on their financial results and subsequent business behavior (of their management and of external stakeholders - contractors and others). The analyzed sample includes 12 companies: 2 large Bulgarian companies from road freight transport (internationally licensed) and an additional sample of 10 SMEsubsidiaries of large foreign companies (when forming control groups for the needs of the difference-in-differences analysis). These companies operate on Bulgarian territory, have ESG reporting and are related to the transport, logistics, courier sectors, as well as the field of communications and telecommunications services. To evaluate the results and test the research hypotheses, value analysis methods, as well as statistical methods and models, were used. The regression model was tested for the absence of multicollinearity, autocorrelation and heteroskedasticity. The data included in the study were processed by Gretl statistical software. A difference-in-differences analysis was conducted using Stata software to trace (possibly confirm) a causal relationship and measure the effect of ESG Reports disclosure. The constructed multiple regression model is based on an accounting-oriented approach focused on operating profit. After performing correlation and regression analysis and according to the constructed models, the presence of a relationship and dependence between the values of the calculated indicators and EVA was verified and established.