Key Insights from Accounting and Finance Experts on Driving Sustainability Forward
There is no doubt that the 14th International Conference “Accounting and Finance for Business 2024: Towards Sustainability”, held on 14-15 November 2024, touched on critical aspects of sustainability in accounting and finance from various perspectives.
The plenary session began with a presentation by Nora Marija Laurinaitytė from Lithuania, titled “Unlocking the Potential of Green Finance.” She emphasized the importance of green investments not only for the future but also today. According to her, any business seeking funding must demonstrate its adherence to sustainability criteria. In the discussion, she also noted that smaller companies often have the advantage of adapting more quickly to these requirements and implementing the necessary changes.
Next, Prof. Dr. Giuseppe Galloppo from Italy spoke at the conference, presenting “Green Initiatives and Stock Market Reaction of Italian SMEs.” His research focused on how investors react to companies’ announcements regarding sustainability. Prof. Galloppo provided a detailed explanation of his research methodology, underscoring the importance of these announcements for investors as they directly impact their investment decisions.
The third plenary presentation, by Prof. Dr. Nadia Albu from Romania, complemented the previous two well, with her topic titled “Professionalization of Accountants in a Post-Communist Setting.” Prof. Dr. Nadia Albu discussed the differences in accounting practices between post-communist countries and Western nations. She highlighted that in Eastern Europe, accountants often limit their role to meeting institutional requirements, such as tax declarations or financial reporting, while in Western countries, there is a greater focus on data collection that supports companies’ own sustainability strategies. She noted that, because of these differences, sustainability reports are often prepared by managers or marketing teams based on narratives rather than accounting metrics or financial indicators. According to professor, this issue can be addressed by transforming accountants’ roles and revising accounting systems to ensure that the necessary sustainability metrics are collected.
Assistant Professor Zhelyo Zhelev from Bulgaria concluded the plenary session with his presentation, “Taxpayer Behavior in the Context of Digital Business Processes.” He analyzed how digitalization in business and tax reporting processes is changing taxpayer behavior. Zhelyo Zhelev emphasized that digital technologies not only transform tax processes but also reshape broader aspects of business management and relationships with government institutions. He shared insights from best practices in various countries, illustrating how these changes contribute to sustainability. Smart tax platforms often implemented at the initiative of tax administrations are pushing taxpayers towards greater transparency, increased sustainability, and, in some cases, moving out of the shadow economy.
On the second conference day (15th November 2024), interesting discussions moved to Panel Presentations and discussion on the topic “Linking sustainability policy to future finance and accounting”. The discussion was moderated by prof. dr. Vilija Aleknevičienė. It was attended by dr. Bart Henssen (Belgium), Head of the Center for Sustainable Entrepreneurship; Giedrė Padaigienė (Lithuania), Head of Swedbank AB’s business clients’ sustainability in Lithuania; Ronaldas Kubilius (Lithuania), Leader of ESG team and member of Tax and Legal Services Team at PwC Lithuania; Silva Katutytė (Lietuva), Managing director at UAB Randers Reb International.
Before the discussion began, its participants made presentations on green financing and the impact of sustainability requirements on the possibility of obtaining bank loans; challenges arising in the process of business sustainability disclosure; the impact of corporate social responsibility on the cost of debt capital in Scandinavian companies. Dr. Bart Henssen presented the experience of Belgian and other European universities in promoting the transition to sustainable business models through the university-business interface, discussed the challenges arising in implementing sustainable business models in practice and carrying out a systematic transformation of higher education institutions towards sustainability. Giedrė Padaigienė expressed her view on the role of the Bank of Lithuania in helping the country’s banks assess the sustainability of their clients and incorporating environmental risk into the assessment of clients’ creditworthiness. She discussed the role of stakeholders and cooperation between banks in assessing the sustainability of clients. Ronaldas Kubilius spoke about the role of accountants and accounting services companies in the team preparing corporate sustainability reports, and presented the services provided by PwC in the field of corporate sustainability assessment and disclosure. Silva Katutytė emphasized that although for the company is not mandatory to submit sustainability reports, some clients already request certain information related to sustainability. Therefore, the company’s management decided not to wait and to prepare the information in advance by forming the team and sharing the responsibilities. The panel discussion provided fruitful insights for scientists, business, and policymakers and implementers.
During both days of the conference, scientific discussions were held in various sessions. The first session, Business Finance, was notable for its high attendance and engaging discussions on pressing accounting and financial issues in a volatile economic and geopolitical environment. Here, the L. Sinevičienė (Lithuania) examined corporate investment in environmental protection, focusing on the factors driving this investment amid economic volatility and shedding light on how sustainability efforts adapt to uncertainty. Then A. Lakštutienė with co-authors (Lithuania) examined the risks posed by COVID-19 and the Russian-Ukrainian war to the performance of pension funds in Lithuania. Their case study highlighted the vulnerability of such funds in turbulent times and emphasised the need for strategic risk management. V. Aleknevičienė and co-authors (Lithuania) analysed the impact of uncertainty on the interconnectivity between green bonds and conventional markets, with a particular focus on the period before and during the war in Ukraine. Their research provided insights into how green finance responds to global instability and highlighted its potential role in addressing such challenges. Researcher from Latvia K. Ketners and A. Jarockis (Latvia) presented insights into performance budgeting in Latvia. Their research highlighted its potential as a tool for informed decision making, aligning fiscal policy with sustainability goals.
Other presentations addressed critical issues such as stock market reactions to green bond announcements in Nordic countries, innovative approaches to financial services, evaluation of public-private partnership projects through a sustainability lens, and models for diagnosing financial distress in trading companies. This lively session highlighted the critical role of business finance in addressing complex global challenges, and emphasised innovation and sustainability in financial practices.
The second session of the conference, Accounting and Finance, featured diverse research contributions, focusing on the integration of innovative approaches and sustainable practices in accounting and auditing. R. Klimaitienė with co-authors (Lithuania) explored the potential of the Time-Driven Activity-Based (TDABC) costing system in accounting service companies. Their research highlighted the system’s ability to improve cost accuracy, streamline processes and increase decision-making efficiency in professional accounting environments. S. Kostova (Bulgaria) gave an insightful presentation on the role of auditing in promoting sustainability in business processes. She highlighted how robust audit frameworks can strengthen transparency, governance and long-term organisational sustainability. E. Besusparienė and M. Bielskienė (Lithuania) examined how the accounting and tax environment influences Lithuania’s international trade. Their findings emphasised the importance of adapting the regulatory framework to enhance trade competitiveness and promote cross-border economic cooperation.
Other presentations in the session covered a wide range of topics, from the evolving challenges of e-commerce accounting and digital transformation in the profession, to trends in public finance and sustainability in agribusinesses. Taken together, these discussions reflected the dynamic landscape of accounting and auditing and underscored the profession’s critical role in addressing today’s challenges and advancing sustainability goals.
The third session of the conference, Corporate Governance, presented a variety of research on sustainability and financial practices. Š. Leitonienė and A. Vaivadienė (Kaunas University of Technology, Lithuania) analysed Lithuanian NGO websites, highlighting strengths in accessibility but gaps in financial transparency. Authors develop the digital accountability index, offering a systematic way to evaluate NGO’s digital accountability level. D. Juočiūnienė, V. Aleknevičienė and D. Zinkevičienė (Vytautas Magnus University, Lithuania) examined CSR reporting in Baltic public companies and found that only half disclose standards, with GRI being the most popular. Larger companies in heavy industries align their reporting with the expectations of investors and society. S. Petrova (D. A. Tsenov Academy of Economics, Bulgaria) examined the role of retail marketing in promoting sustainable consumption, showing that increased purchases of fruit and vegetables are driven by consumer engagement. M. Nurmet, P. Sander and M. Kantšukov (University of Tartu, Estonia) evaluated Estonia’s 2018 tax reform. While the reduced tax rate on profit distributions affected the dividend policy of some companies, the overall impact was modest.
In summary, the conference highlighted pressing topics in sustainability and digitalization, confirming the increasing importance of these areas for both the business and academic communities. We sincerely thank all participants for their valuable contributions to the discussions and look forward to exploring these essential topics further at our next conference in 2026.
