THE IMPACT OF BRSR ADOPTION ON CORPORATE TRANSPARENCY AND FINANCIAL PERFORMANCE

In 2021-22 to 2023-24, academics and corporations are discussing the relationship between BRSR and financial performance in 150 listed Indian companies. This study offers empirical evidence on the relationship between ESG and financial performance in emerging markets like India.  BRSR disclosure quality favourably affects operational efficiency (ROA) and potential (NPM) but neutrally affects equity returns (ROE). Sector-specific examinations revealed significant variation, with substantial positive correlations in IT and finance and lesser correlations in manufacturing and pharmaceuticals. Positive BRSR-ROA and BRSR-NPM relationships support stakeholder theory that comprehensive reporting provides value via operational efficiency, cost savings, and sustainability trust to manage ESG more stakeholders. Companies with higher BRSR ratings appear to do this systematically, which improves their performance. The insignificance of the BRSR-ROE relationship suggests that equity market participants may not reward sustainability efforts in the short term because they view paper as short-term costs without understanding long-term value creation mechanisms. Conclusion BRSR disclosure quality and financial performance rose over time, with BRSR scores rising 27.3% and ROA, ROE, and NPM rising 13.0%, 10.0%, and 21.6%, respectively. These patterns show favourable connections, although causality is constrained by short-term observation. Reverse causality, omitted variable bias, and other investors are least relevant to data with contemporaneous economic events. This research affects managers and policymakers. Although BRSR is not a regulatory compliance assessment, CEOs may use it to disclose ESG issues and improve ESG management systems, including valuing communication. Accordingly, investors should use BRSRs as frameworks since firms with higher sustainable integration may have superior fundamentals and long-term resilience. Policymakers should enhance reporting frameworks, prioritise data quality, support sectoral implementation, and promote ESG standards for risk integration via credit ratings and investment guidelines. Future research could explore long-term effects of BRSR, implementation issues, management perceptions, and mediating variables like corporate governance, R&D, stakeholder investment, ecosystem maturity, and engagement mechanisms. Once time-series and sustainability reporting data is available, we will know causality and long-term repercussions. This study adds to the limited empirical literature on financial and market impact of MDR on sustainability reporting from India's unique regulatory and market context and helps corporate leaders, investors, and policymakers make informed decisions to transition to sustainable business practice.

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