The Impact of Sustainability Reporting on the Profitability Performance of Private Placement Companies

Abstract

This study aims to test the relationship between sustainability reporting and profitability performance of private equity companies. This study used a sample of 118 private placement companies in Malaysia from 2018 to 2024. It utilized secondary data from a database and annual reports by using OLS regression. The results showed a positive and significant link between sustainability reporting and profitability performance of private equity companies, especially in light of increasing environmental and economic challenges. The sustainability is a strategic instrument that make on the improving firm image, decreasing costs, and supporting the customer loyalty, which can positively influence profitability performance. Community performance and good governance improve customer confidence and investor, leading on the improved revenue. Sustainability positively influences profitability performance when applied as portion of an included, long-term strategy. Organizations are recommended to participate sustainability principles into their daily processes to confirm sustainable development and balance profitability.