The Impact of the CSRD Legislation on Bulgarian Public Companies

Abstract

This master thesis investigates the impact of the Corporate Sustainability Reporting Directive (CSRD) announcement and adoption on the financial performance of publicly listed companies in Bulgaria. Utilising an event study methodology around three key legislative dates – the initial draft announcement (April 2021), its entry into force (January 2023), and the national incorpo-ration deadline (July 2024) – the study consistently found a statistically significant negative im-pact on company financial performance, specifically the Cumulative Abnormal Returns (CAR). This consistently negative market reaction suggests investors primarily perceived the CSRD as introducing significant compliance costs and administrative burdens.