The Impact Of Mandatory Non-Financial Disclosure On The Profitability of Listed Financial Institutions.

Abstract: Title: The impact of Mandatory Non-financial Disclosure on the profitability of listed financial institutions. A quantitative study on Financial Institutions in the European Union.  Level: Master’s program in Business Administration, Accounting.  Authors: M. K. Ofori, M. B. Kolleh & S. Addo   Supervisor: Asif M Huq  Date: 2023 - August  Aim: This study examines the impact of mandatory NFI on the profitability of listed financial institutions operating within the EU after the introduction of the NFRD. In line with this, the study identified and quantified the factors that exert influence on the profitability of listed financial institutions regarding their adherence to nonfinancial disclosure.  Method: This is a quantitative study where statistical regressions (Difference in Differences, Poisson, and Logistics) analysis is employed to derive meaningful interpretations of the variables being considered.  Results and conclusions: The result of this thesis shows that the nonfinancial disclosure reform led to an increase in total disclosure in the EU. In conclusion, after the reform, the disclosure of customer welfare information positively impacted profit.  Contribution of the thesis: the study makes a substantial contribution to the existing literature on sustainability reporting and financial institution performance within the context of the EU, but also provides valuable insights for financial institutions, regulators, policymakers, and other stakeholders involved in sustainability reporting and financial sector regulation.  Suggestions for future research: It is important to conduct further studies into how institutions are coping with the impact of the EU Directive on profit.  Keywords: Customer Welfare, Risk Management, Social Conditions, Agency Theory, Legitimacy Theory,