Does the Integrated Reporting Influence the Financial Performance Within the Banking System? Case Study on Romanian Banks

The banking sector, as compared to other sectors of activity, represents a level of credit risk or of credit quality, measured through the rate of unperforming loans. This paper has the purpose of analysing in what measure the integrated reporting (from the point of view of financial, environmental, and social dimensions) influences the financial performance of the banking entities in Romania. This study encompasses a sample composed of 19 presently active banking entities on the Romanian market which publish financial and non-financial reports, as part of the integrated reporting. To evaluate and determine the impact of each of the integrated reporting’s components on nonperforming loans, one referred to data analysis through multiple linear regression. The study’s results have demonstrated that the financial and environmental information influence the rate of nonperforming loans from the Romanian banking system. Regarding the social components of the integrated reports, these do not impact under any manner the banking system’s performance measured through nonperforming loans.