The Effect of the Quality of Disclosure of Sustainability and Quality of Earnings on Investment Risk and their Impact on Market Value Added (MVA)

Abstract

This study aims to determine the effect of the quality of sustainability disclosure and the quality of risk earnings on investment and its impact on market value added (MVA) in manufacturing companies listed on the Indonesia Stock Exchange. The research design used is causal research with a population of manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 - 2021. This study used a purposive sampling method with a total sample of 69 which are manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 – 2021 and uses software E -Views version 12. The results of the study obtained partially (1) the quality of sustainability disclosure has a significant positive effect on investment risk, (2) earnings quality shows a negative effect on investment risk, (3) investment risk shows a negative and significant effect on Market Added Value (MVA) ) , (4) the quality of sustainability disclosure has a significant positive effect on Market Value Added (MVA), (5) earnings quality has no effect on Market Value Added (MVA), (6) The quality of sustainability disclosure has a strong direct effect on Market Value Added ( MVA), investment risk does not mediate, and (7) earnings quality has no significant direct effect on Market Value Added (MVA), risk does not mediate the effect of earnings quality on Market Value Added (MVA).