Disclosure of Sustainability-Related Information and Risk-Adjusted Financial Performance of Agri-Food Cooperatives

The cooperatives combine a pyramidal structure, in which few members concentrate decision-making power, with ownership dispersed among a broad membership base. This configuration favors adverse selection and moral hazard arising from information asymmetry between managers and stakeholders, which legitimacy theory suggests may be reduced through sustainability disclosure. The study advances the literature by combining three elements not yet integrated in research on cooperatives: the cultural pillar as an autonomous dimension of sustainability, disaggregated analysis by pillar, and risk-adjusted financial performance. The level of sustainability disclosure was analyzed from a stakeholder perspective, along with its association with financial performance. Forty-four expert-validated indicators were applied to 39 cooperatives listed in the 2022 World Cooperative Monitor that published complete reports over the 2020–2022 triennium, resulting in 117 observations, estimated by fixed effects with cluster-robust standard errors. Mean disclosure was 0.52, led by the environmental pillar (0.70), followed by the economic (0.62), social (0.47), and cultural (0.33) pillars. The aggregate index showed no statistically significant association with risk-adjusted financial performance, either for ROA or for ROE, whereas the social dimension remained positive and significant regardless of the metric used. This pattern is consistent with the propositions of legitimacy theory regarding the social pillar, although the underlying mechanisms of information asymmetry reduction and legitimacy strengthening were not directly measured in this study.