The Effect of Sustainibility Reporting Disclosure and Its Impact on Companies Financial Performance

Abstract

<p>The purpose of this research was to examine empirically the effect of sustainability reporting disclosure on company performance. Sustainability reporting is a report that measures, discloses and shows the responsibility of the company to internal and external parties as an accountability form of organization performance in order to gain continuous development purpose. Sustainability reporting becomes trend and need for companies to disclose economic, environmental, and social performance to stakeholders. Samples used as many as 40 observations were derived from companies that consistently become ISRA (Indonesia Sustainability Reporting Award) nomination and listed in Indonesia Stock Exchange (BEI) during 2016-2017. Sustainability reporting measured by GRI (Global Reporting Initiative) continuous reporting guideline-G4 with 91 indicator items and financial performance measured by Return on Assets (ROA). The analysis method used was Multiple Linear Regression. The results of the research show that Economic Dimension Disclosure (EC) in sustainability reporting has effect on financial performance. Whereas, Environmental Dimension (EN) and Social Dimension (SO) have no effects. The condition indicates that sustainability reporting in short term has not been able to affect companies financial performance.</p>

Effect of disclosure Sustainability Report on company value with company performance as intervening variables in the company Go Public listed on Indonesia stock exchange

“…Profitability is the company's ability to earn profit related to assets, the level of sales and certain stock capital. One way to measure profitability ratio is to use ROA (Return on Assets)" [9]. From some of the opinions above, it means that financial performance is measured or analyzed using a company ratio measuring tool to assess how much profit the company gets.…”

Pengaruh Sustainability Reporting Terhadap Harga Saham Dan Nilai Perusahaan Pada Perusahaan Lq45 Tahun 2017 – 2021 Dengan Internal Control Disclosure Sebagai Moderasi

“…Sustainability reporting dilakukan untuk menyampaikan tanggung jawab kinerja organisasi untuk mencapai tujuan pembangunan berkelanjutan (Chairina & Hardi, 2019). Untuk harga saham, harga ini dapat berubah setiap waktu yang diakibatkan oleh permintaan dan penawaran pasar terhadap harga saham.…”

Does BOC`'s Characteristics Moderate The Effect of Corporate Social Responsibility on Performance?

“…If given a cycle, the company does not carry out business activities that are oriented only to profit but also needs to provide reciprocal benefits to stakeholders for operational sustainability (Hardi & Chairina, 2019;Masdupi & Yulius, 2017) which is following stakeholder theory (Wicks & Harrison, 2017;Zakhem & Palmer, 2017). Differences in interests between stakeholders and the company can arise as a result of the incompatibility of the company's operating activities with the expectations of stakeholders so that pressure arises from stakeholders on the company, so the purpose of corporate CSR is to mitigate a gap between them (Benn et al, 2016;Lindawati & Puspita, 2015).…”

“…The positive implication is that companies avoid potential challenges and threats from external sources (Nyeadi et al, 2018) where CSR directs companies to achieve sustainable development (Nirino et al, 2020). This means that the company maintains the existence of life with ideal and continuous environmental factors (Hardi & Chairina, 2019).…”