The effect of sustainability report disclosure on corporate financial performance with external assurance as moderation

This study aims to analyze the effect of corporate governance on sustainability report disclosure, with environmental performance acting as a moderating variable. The analysis focuses on the role of the board of directors, independent commissioners, audit committees, and financial performance in influencing the quality of sustainability reporting, particularly within the Indonesian context. Environmental performance is measured using the PROPER scale. The study utilizes data from the annual and sustainability reports of 20 companies in the basic materials and energy mining sectors listed on the Indonesia Stock Exchange from 2018 to 2022, amounting to 100 observations. The data is processed using SPSS 23. The results show that the presence of female directors significantly enhances the quality of sustainability disclosures, as they tend to prioritize social responsibility. Moreover, financial performance, as measured by Return on Assets (ROA), positively affects sustainability reporting, with companies in better financial health being more transparent in their disclosures. Environmental performance, when combined with strong independent oversight, further improves reporting quality, reflecting the positive influence of independent commissioners and sound financial governance. The study concludes that environmental performance, as measured by the PROPER scale, plays a significant role in improving sustainability disclosures in Indonesia. It recommends that the Indonesian government provide stronger support and clearer regulations to help companies improve their sustainability practices and contribute to the G20 agenda.

Sustainability reporting has become a critical tool for enhancing corporate transparency, building investor confidence, and improving financial performance. This study explores the relationship between detailed sustainability reporting practices and investor confidence, as well as their impact on corporate financial outcomes, particularly Return on Assets (ROA). The research utilized content analysis of sustainability reports from listed companies, focusing on the level of detail and transparency in the reports, and conducted an investor perception survey to assess their trust and confidence in companies based on the sustainability disclosures. The findings reveal a positive correlation between comprehensive sustainability reporting and higher levels of investor confidence, with companies that provide transparent and detailed reports outperforming those with minimal disclosures in terms of financial performance. Companies that effectively communicate their environmental, social, and governance (ESG) practices through clear sustainability reports tend to experience improved operational efficiency, increased profitability, and higher ROA. The study also highlights that sustainability reporting is not merely a tool for corporate responsibility but serves as a strategic advantage in attracting investment and achieving long-term financial success. The research recommends that companies invest in enhancing their sustainability disclosures to attract more investors and improve financial health. Additionally, policymakers should consider mandating detailed sustainability reporting to improve market transparency. Future research could focus on examining the long-term effects of sustainability reporting on investor behavior and extend the study to different industries and markets to further understand the role of sustainability disclosures in shaping corporate performance.

This paper aims to see the relationship between disclosures in the sustainability report (SR) towards the company's financial performance as measured by the Return On Equity (ROE) ratio. Linear multiple regression with the help of e-views was used for this study. The population for the study was the companies of LQ 45 listed on Indonesian Stock Exchange (IDX) from 2014-2018. Samples were obtained using purposive sampling method, with 18 corporate samples. The results of research that have been carried out in describing that simultaneously, the disclosure of the social, environmental and economic dimensions in sustainability reporting have the effect towards the company's financial performance as measured by profitability. However, partially, only the economic report disclosure in the SR that has an effect on profitability. Meanwhile, environmental report disclosure & social report disclosure in SR has no effect on corporate profitability.

Economic growth in Indonesia is growing rapidly, this further exacerbates the current environmental conditions which are characterized by high levels of pollution, greenhouse gas effects, global warming and the threat of ecosystem extinction. The emergence of various environmental problems that occur today are caused by various sectors, one of which is the industrial sector. As the largest contributor to GDP in Indonesia, the industrial sector which is an IDX listing company has an obligation to have a sustainability report where this report describes economic, social and environmental activities. This sustainability report can provide information symmetry that can be considered by third parties, both financial institutions and investors. This sustainability report must have external quality and assurance so that it is not just a disclosure but can be a reliable sustainability report.
 Therefore, this study has an aim to analyze the relationship between the sustainability reports quality, the external assurance quality, usage of external assurance, environmental performance and financial access. The sample population are non-financial sector companies listed on the Indonesia Stock Exchange and PROPER during the 2014-2019 period. The analytical method used is panel data regression analysis using STATA.The result of this study found a significant strongly relationship between environmental performance and the quality of sustainability report disclosures on the company's financial access. In contrast, there is an insignificant effect between the quality of external assurance sustainability report disclosure on the financial access of the main sector and manufacturing companies.

PurposeThis study explores the scope, materiality and extent of environmental and social sustainability disclosure – as benchmarked against the Global Reporting Initiatives (GRI-G4) – of the top 10 logistics firms operating in Australia. It also investigates the relationships between the extent of environmental and social sustainability disclosure of these firms and their actual financial performance.Design/methodology/approachThe authors adopted an inductive case study approach for an in-depth investigation of the relationships among concepts. A content analysis of the firms' sustainability reports was performed to determine their pattern and extent of sustainability disclosure against the GRI framework. A disclosure–performance analysis (DPA) matrix was employed to relate the extent of environmental and social sustainability disclosure of these 10 firms with their actual financial performance (i.e. return on assets [ROA] and total revenue growth).FindingsThis study found that the extent of sustainability reporting was relatively high on the labour practices and decent work subgroup, followed by the environmental dimension of the GRI-G4 framework. However, it was relatively low on the society, human rights and product responsibility subgroups of the GRI framework. The DPA revealed that “Leaders” (firms with higher sustainability disclosure levels) achieved significantly higher ROA. However, “Opportunists” (firms with lower sustainability disclosure levels) achieved higher levels of financial returns (i.e. ROA and total revenue growth) with less attention to sustainability issues, which contradicts the win-win view of the sustainability disclosure–financial performance relationship.Originality/valueFirst, this study contributes an in-depth review of sustainability disclosure practices of top logistics firms operating in Australia. Second, using DPA, it identifies the novel effects of environmental and social sustainability disclosure levels on these firms' financial performance. It also sheds further light on the potential effect of investments beyond substantial profitability for sustainability growth and corporate governance on the sustainability disclosure–financial performance relationship.

In the contemporary business landscape, sustainability reporting has become increasingly critical as stakeholders demand greater transparency and accountability from companies regarding their environmental, social, and governance (ESG) performance. This study delves into the factors that influence the extent of sustainability report disclosure, focusing on the role of financial performance, stakeholder pressure, and the moderating effect of independent commissioners. This study employs a quantitative approach, utilizing data from 96 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2022. The sample encompasses 288 observations, and purposive sampling was employed to select companies that met specific criteria, ensuring the inclusion of companies that have consistently disclosed sustainability reports and maintained financial stability. Regression analysis with an absolute difference test was conducted using SPSS 23 to analyze the relationships between the variables. The findings of this study indicate that financial performance and stakeholder pressure significantly influence sustainability report disclosure. Companies with higher financial performance tend to disclose more sustainability information, suggesting that they have the resources and motivation to invest in sustainability reporting. This positive association between financial performance and sustainability reporting implies that companies with stronger financial positions are better equipped to allocate resources towards sustainability initiatives and their subsequent disclosure. In conclusion, the proportion of independent commissioners on the board moderates these relationships, indicating that independent oversight enhances the positive effects of financial performance and stakeholder pressure on sustainability report disclosure. The presence of independent commissioners on the board strengthens corporate governance mechanisms, ensuring greater transparency and accountability in sustainability reporting.

Purpose: The purpose of this study is to analyze the effect of profitability, liquidity, profitability, institutional ownership, managerial ownership, and foreign ownership on the disclosure of sustainability reports. Methodology: This study uses a quantitative approach with panel data analysis. The sample selection used a purposive sampling technique and obtained 15 samples of companies listed in the SRI-KEHATI index from 2017-2021. Findings: The study results show that profitability, liquidity, institutional ownership, and managerial ownership do not affect the disclosure of sustainability reports. Foreign ownership has a negative effect on the disclosure of sustainability reports. Novelty: The novelty of this study is the research focus which analyzes the completeness of disclosing sustainability reports from companies with ESG principles, namely companies listed on the SRI-KEHATI index. In addition, the focus of the independent variables used is financial performance, which is proxied by profitability and liquidity, and ownership structure, which is proxied by institutional ownership, managerial ownership, and foreign ownership.

Purpose: This study aims to analyze the effect of Sustainability Report (SR) disclosure on company performance. Research Methodology: This study uses data from 170 manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2022 period. A total of 832 book years were analyzed using the panel data regression method. Performance is measured using earnings per share (EPS), which reflects market performance, and Return on Equity (ROE) and Return on Assets (ROA), which reflect accounting performance. Results: The findings show that SR disclosure positively affects EPS performance. SR disclosure has a marginal influence on ROE performance with an alpha test level of 10%. However, SR disclosure does not have a significant effect on ROA performance. Although internal SR disclosure does not affect performance, it has been proven to elicit a response from the market. Limitations: Sustainability Disclosure in this study was measured using a dummy variable. Consequently, it is less comprehensive to assess the quality of sustainability practices. Contribution: The findings strengthen the literature on the influence of sustainability disclosures on market performance. The challenge is to empirically prove that market performance should have an impact on accounting performance in the long term.

The purpose of this study was to test and analyze the effect of Good Corporate Governance (GCG) and others: managerial ownership, number of Board of Commissioners and Audit Committee, and Financial Performance, which included ROA and ROE on company sustainability in banking sub-sector companies listed on the Indonesia Stock Exchange. In addition, this study also aims to determine whether the firm size can be used as a moderation variable to strengthen or weaken the relationship between good corporate governance (GCG) and the financial performance of the company's sustainability. This research is a type of quantitative research with a descriptive approach. Purposive sampling techniques were used from 47 banking companies in the IDX, and 19 banks were included in the research sample within 6 years of the period. The data used are secondary data and data collection methods, accessed by accessing the IDX's 2017-2022 annual report. The results of this study show that good corporate governance (GCG) has no significant effect on sustainability. The audit committee has no significant effect on sustainability reports. Managerial ownership has a significant effect on sustainability reports, independent commissioners have no significant effect on sustainability reports, the Board of directors has no significant effect on sustainability reports, and financial performance has a significant effect on sustainability reports, where ROA and ROE have a significant effect on sustainability reports. Firm size can moderate the influence of GCG and financial performance with sustainability reports. Keywords: good corporate governance, audit committee, board of commissioners, managerial ownership, financial performance, ROA, ROE, sustainability report, and firm size

The purpose of this study is to examine the sustainability information that energy companies provide on social media and the relationship between that data and that which is shared in conventional sustainability reports. Based on stakeholder theory, we use a sample of Chinese A-share listed energy corporations in 2020 and refer to GRI G4 guidelines to conduct content analysis on their 17,451 tweets from the WeChat platform and 53 sustainability reports. The analysis results show the following: 1) both the sustainability disclosures of Chinese energy firms on WeChat platform and sustainability reports focus on investor and employee dimensions. Among them, the average proportion of investor dimension disclosure to total disclosure is 31.92% and 35.19% on social media and sustainability reports, respectively, and the average proportion of employee dimension disclosure is 27.22% and 17.92%, respectively. However, the two channels show a large difference in the environment and government dimensions. The average proportion of environment disclosure in sustainability reports is 13.44%, while on social media it is only 2.01%. Government disclosure in sustainability reports is 8.24% and as high as 20.43% on social media. (2) Chinese energy firms prefer to provide supplementary information on social media. For example, using the investor dimension as an example, the average proportion of non-GRI information on social media is 71.47%, while that of the sustainability report is only 48.56%. This study helps stakeholders to better understand sustainable information on social media.

This study aims to analyze the influence of Sustainability Report disclosure and firm size on financial performance in Basic Materials sector companies listed on the Jakarta Islamic Index (JII) for the period 2021-2024. The research phenomenon is grounded in fluctuations in financial performance alongside environmental and social issues faced by companies within the basic materials sector. The research method employed is quantitative explanatory. The research population encompasses the annual reports and sustainability reports of mining companies in the JII. Utilizing a purposive sampling technique, a sample of 9 companies was obtained. The collected secondary data were subsequently analyzed using linear regression with the assistance of E-Views software. Results indicate that, simultaneously, Sustainability Report disclosure and firm size exert a significant influence on corporate financial performance. Partially, Sustainability Report disclosure is proven to have a significant influence on financial performance. This indicates that transparency in economic, social, and environmental aspects, as well as the scale of company assets, serve as critical factors for investors in assessing the stability and potential profitability of companies within the basic materials sector.

The disclosure of Sustainability Reports by State-Owned Enterprises (SOEs) plays an important role not only in complying with regulatory requirements, but also in building the company's image and stakeholder trust. This study aims to analyze the influence of Good Corporate Governance and financial performance on the disclosure of Sustainability Reports in SOEs listed on the IDX-MES BUMN 17 index for the period 2021–2024. The research sample consisted of 9 companies with a total of 36 observations obtained through purposive sampling. Data analysis was performed using descriptive statistics, classical assumption tests, and hypothesis testing with the help of Microsoft Excel and SPSS version 22. The results show that Good Corporate Governance and financial performance influence Sustainability Report disclosure, while independent boards of commissioners and audit committees do not. Simultaneously, all research variables have a significant effect on Sustainability Report disclosure.

The research investigates the influence of corporate governance and financial performance on the disclosure of sustainability reports (DSR) in energy sector companies listed on the Indonesia Stock Exchange. The research population was 71 energy sector companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period, and 10 of the 71 companies that met the sample criteria were the unit of analysis. The data analysis method for the DSR determinant estimation model uses panel data regression analysis. The research results show that liquidity hurts DSR, while company size has a positive impact. Profitability, capital structure, foreign Ownership, and independent commissioners have yet to be proven to determine DSR. These findings demonstrate that corporate governance cannot encourage companies to carry out DSR according to stakeholder expectations as a legitimacy mechanism. Therefore, independent commissioners and foreign Owners can pressure companies to carry out DSR optimally by applicable regulations and achieve sustainable performance.

The research investigated the effect of voluntary sustainability reporting on firm value, moderated by profitability, specifically targeting Indonesian non-financial public companies. Its originality lied in examining sustainability reporting as voluntary disclosure, given that Indonesian regulations mandated it only after 2020. The research introduced a new approach by integrating moderating variables that differentiated effects at different profitability levels, where this measure was an extension of previous studies. The research also investigated whether the level of profitability affected the strength of the relationship between sustainability reporting disclosure and firm value, as measured by stock price. The sample consisted of 41 sustainability reports from non-financial public companies between 2018 and 2020, allowing the researchers to capture the impact of voluntary disclosure on firm value before the regulatory requirements. The research utilized the PROCESS Macro by Hayes in the SPSS program to analyze the data. The findings indicate that voluntary sustainability reporting disclosure positively impacts firm value, and profitability significantly moderates this relationship. Specifically, firms with lower profitability exhibit a greater positive effect of sustainability disclosure on firm value, underscoring the importance of financial performance in enhancing the impact of voluntary disclosure. These findings contribute to stakeholder theory by highlighting the role of profitability in shaping the effectiveness of sustainability reporting. The research adds to the literature by providing new insights into the strategic value of voluntary sustainability disclosure for non-financial firms, particularly those with strong financial performance, in enhancing firm value.

This study aimed to determine the impact of environmental performancemeasured by PROPER (Program Penilaian Peringkat Kinerja Perusahaan dalamPengelolaan Lingkungan Hidup) and financial performance on disclosure ofsustainability report. Sustainability Report (SR) measured by 46 items disclosurestated on G4 GRI (2013), while financial performance measured by using ratio ofprofitability, liquidity, and leverage of non-financial companies listed inIndonesian Stock Exchange and located in DKI Jakarta. A stastistical methodused in this study is multiple regression analysis to examine the effect ofenvironmental performance on the disclosure of sustainability report. Dataanalysis and hypothesis testing in this study using SPSS version 20. Resultsshowed: (1) environmental performance the company has a significant positiveeffect on the disclosure of sustainability report, (2) financial performance has asignificant negative effect on the disclosure of sustainability report.