The Effect Of Audit Committee, Gender Commissioners And Directors, Role Duality, And Firm Size Againts Extension Of Sustainability Report Disclosure

Abstract

The purpose of this research is to investigate the effect of audit committee, gender of Commisioners and Directors, role duality, and firm size against extention of sustainability report disclosure. The population of this research comprises companies registered as manufacturing companies which are listed on the Indonesia Stock Exchange for the periods 2015-2017. The technique of determining the sample used is purposive sampling. This research uses a multiple linear regression. This research proves that audit committee, gender of Commissioners and Directors, role duality, and firm size together have an effect against sustainability report disclosure. This research also proves that partially audit committee and firm size have a positive effect against sustainability report disclosure. Meanwhile, gender of Commissioners and Directors doesn’t have positive effect and role duality doesn’t have negative effect against sustainability report disclosure.

The Effect of Company Size and Audit Committee on Sustainability Reporting

“…The legitimacy can be realized through the disclosure of sustainability reports [25]. Bhatia and Tuli [7], Dizar et al [8], Kilic and Kuzey [9], Lucia and Panggabean [2] and Pujiastuti [10] states that company size has a positive effect on sustainability report disclosure. So, the first hypothesis is: H1: Company size has a positive effect on sustainability report disclosure.…”

“…Research on company size on sustainability report disclosure also shows different results. Bhatia and Tuli [7], Dizar et al [8], Kilic and Kuzey [9], Lucia and Panggabean [2] and Pujiastuti [10] determined that the size of company has a positive influence on sustainability report disclosure. This is not matched with Diono and Prabowo [11], Hardika et al [12] and Hidayah et al [13] who stated that the company size harms the sustainability report disclosure.…”

“…They are also in contrast to Ariyani and Hartomo [14], Maryana and Carolina [15], Masum et al [16] and Rahman [17] who explained that company size does not affect the sustainability reports disclosure. Dizar et al [8] and Hidayah et al [13] stated the outcome that audit committee had a signifificant effect to the sustainability reports. Adhipradana and Daljono [18] and Khafid and Mulyaningsih [19] revealed that audit committee can not affect the the sustainability report.…”

The Effect Of Industry Type, Government Pressure, And Company Size To Disclosure Of Sustainability Report

“…According to Elkington (1997) to maintain its survival, companies need to pay attention to the triple bottom line, namely balancing the profits obtained by the company (profit), ensuring the welfare of employees and society (people), and preserving the environment (planet) (Mulpiani, 2019). One of the communication media used by companies in conveying information related to accountability reports to stakeholders is the sustainability report (Lulu, 2020;Kurapatskie & Darnall, 2012;Adaui, 2020;Mion & Adaui, 2019;Kuzey & Uyar, 2017;Eccles, Ioannou, & Serafeim, 2014) Sustainability reporting is defined as a practice of measuring and disclosing information to stakeholders related to company performance and responsibilities to achieve sustainable development goals by taking into account economic, environmental and social aspects (Dizar, Alifia, & Alvionita, 2018;Calabrese, Costa, Levialdi Ghiron, & Menichini, 2019). The issuance of a sustainability report is mandatory for all companies in accordance with POJK No.…”

Sustainability Report Disclosure: A Good Corporate Governance Mechanism

“…);Dizar et al, (2018), because the audit committee will enable businesses to publish sustainability reports as information to stakeholders in order to gain credibility through good corporate governance and audit meetings. used in this study is the sustainability report.…”