The impact of sustainable development on the financial performance of organizations: Substantiating the effectiveness of investments
Liliia Tymoshchyk 1 * , Olena Zhuravel 2 , Viktoriia Rudevska 3 , Inesa Shepel 4 , Nadiia Bocharova 5
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1 Scientific Research Center for Forensic Science of Information Technologies and Intellectual Property, The Ministry of Justice of Ukraine, Kyiv, UKRAINE2 Department of Management, Finance and Business Technologies, Institute of Public Service and Administration, Odesa Polytechnic National University, Odesa, UKRAINE3 Department of Finance, Faculty of Economics, National University of Life and Environmental Sciences of Ukraine, Kyiv, UKRAINE4 Department of Entrepreneurship, Accounting, and Finance, Faculty of Economics, Kherson State Agrarian and Economic University, Kherson, UKRAINE5 Department of Management, Faculty of Management and Business, Kharkiv National Automobile and Highway University, Kharkiv, UKRAINE* Corresponding Author

Abstract

The paper assesses the influence of sustainable development (SD) on an organization’s financial performance to determine its effectiveness in improving enterprise financial indicators. Data were collated and analyzed from a study sample of 93, using an enumeration sampling technique on the two firms under study. Findings indicated a negative association between return on equity and SD practices. A significant positive association exists between SD practices and firm size, suggesting that larger firms adopt more sustainable practices. No significant association was found between earnings per share and SD practices. The study recommended that sustainability reports should be made mandatory through legislation, and that the government should allow tax credits and other incentives for corporate bodies that engage in practices that support sustainability, to encourage them to contribute more to SD.

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

EUR J SUSTAIN DEV RES, Volume 10, Issue 2, 2026, Article No: em0386

https://doi.org/10.29333/ejosdr/18139

Publication date: 01 Apr 2026

Online publication date: 15 Mar 2026

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Article Downloads: 8

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