The added value of non-financial reporting in the DACH-region - An empirical analysis

This empirical analysis examines the development and added-value of non-financial reporting in the DACH Region (Germany, Switzerland and Austria) over the last 11 years. In order to do so the annual and sustainability reports of the 70 companies listed in the prime-indices DAX (Germany), SMI (Switzerland) and ATX (Austria) have been evaluated with regard to 18 criteria. These 18 criteria themselves can be allocated to three sub-categories: Governance & Economy, Social Involvement & Society and Ecology. Furthermore, formal aspects such as length and medium have been evaluated. The non-financial reporting quality has significantly increased in all three countries during the last 11 years. However, reporting quality in Austria is clearly behind the other two countries. The usage of separate sustainability reports and integrated reports has also increased during the observed period. Multiple regression analyses have revealed that the usage of separate and integrated reports does positively affect the reporting quality. Non-financial reporting does negatively affect abnormal volatilities in some of the three subcategories, however, not in Austria.