Abstract
The importance of sustainability reporting for companies to be able to know the role of the company in disclosing social responsibility and the implementation of corporate sustainability as a manifestation of corporate governance mechanisms, company size and financial performance. This study uses a stratified random sampling method for companies that have revealed sustainability reports and those that do not disclose sustainability reports. The research method uses logistic regression, with a sample of 13 non-financial companies listed on the Indonesia Stock Exchange. Based on the results obtained, it can be seen that the mechanism of corporate governance consisting of independent commissioner variables has a negative influence on sustainability reporting, institutional ownership variables have a positive influence on sustainability reporting, managerial ownership variables have a negative influence on sustainability reporting, audit committee variables have a negative effect on sustainability reporting, the variable size of the company gives a negative influence on sustainability reporting, and financial performance variables which are leverage variables have a negative influence on sustainability reporting.
Highlights
Sustainability reporting application activity is associated with the regulation of social and environmental responsibility in the Law of the Republic of Indonesia No 40 the Year 2007 regarding Limited Liability Company of section 74 in paragraph 1, the Act states that "The company that runs business activities in the field and or related to the natural resources required to implement social and environmental responsibility"
The results showed that except for leverage, all the characteristics of the company and corporate governance mechanisms differ significantly between the company issuing the Sustainability Report with a no
While research [2] showed that the variables of the audit committee, governance committee and leverage positive effect on the disclosure Sustainability Report temporary variables independent board, managerial ownership and profitability do not affect the disclosure Sustainability Report
Summary
Sustainability reporting application activity is associated with the regulation of social and environmental responsibility in the Law of the Republic of Indonesia No 40 the Year 2007 regarding Limited Liability Company of section 74 in paragraph 1, the Act states that "The company that runs business activities in the field and or related to the natural resources required to implement social and environmental responsibility". Law of the Republic of Indonesia Number 25 the Year 2007 on Investment Article 15 (b) states that "Every investor is obliged to implement corporate social responsibility" In these regulations explain if the company does not perform the obligation, will be penalised in accordance legislation. Another study conducted by [14] with the aim of study to determine differences in the characteristics of companies (profitability, liquidity, leverage, activity, company size) and corporate governance (audit committees, the board of directors, governance committee) of companies issuing the Sustainability Report that are not issued. There is a positive effect caused by the variable profitability, size of the company, the board of directors and audit committee While variables such as liquidity, leverage, activity, and governance committee do not give effect to the disclosure Sustainability Report. Based on the background that has been stated previously, the researchers intend to conduct this study as a reference and a reference to determine the role and mechanisms for corporate governance, financial performance and the size of the company towards Sustainability Reporting
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