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>
Highlights
The purpose of this research was to examine empirically the effect of sustainability reporting disclosure on companies’ financial performance
The companies which become the samples Return on Assets (ROA) Formula is: Net Profit / Total Assets in this study are the companies included in the Indonesia Sustainability Reporting Award (ISRA)
Based on the results of descriptive testing describing the three dimensions of Independent Variables sustainability reporting.Disclosure of economic dimension ranging from 0% -88.90%
Summary
The purpose of this research was to examine empirically the effect of sustainability reporting disclosure on companies’ financial performance. Sustainability reporting becomes trend and need for companies to disclose economic, environmental, and social performance to stakeholders. The goal of the Basically, companies must maintain good sustainability report is to meet the living needs relationships with their stakeholders, especially of the present generation without disrupting the in the availability of resources to carry out ability of future generations to fulfill their lives operational activities. This awareness drives the by paying attention to environmental aspects community to expect the information and social aspects (Maria, 2014). Performance, especially profitability, is needed Stakeholder Theory that explains the to assess the economy in the future. management, recommend attitudes, structures
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