Abstract
The objective of this research was to find out the effects of the disclosure of Sustainability Reporting including the economic performance disclosure, environmental performance disclosure and social performance disclosure, and also the board involvement on the firm value. Sustainability disclosure is the company's effort to make the company accountable for all stakeholders, for the company’s performance goals towards sustainable development. The population of the research was the companies listed in the Indonesia Stock Exchange for the period of 2015-2017. This research uses the content analysis method, namely the quantitative research, to find out the relationship between one independent variable (sustainability disclosure, covers economic, environmental and social performance disclosure) and the dependent variable (company performance) with the board involvement as the moderating variable. The results of the research indicated that the board involvement moderated the disclosures of economic, environmental and social performance towards the value of the company. Further research indicated that the disclosure of Sustainability Reporting that included the economic, environmental, and social performance disclosure, had significant effect to the company value, but it is negative. The negative value shows that the cost spent for the disclosure of the Sustainability Reporting is still greater than its effect towards of the firm value. Keywords: Sustainability Disclosure, Economic Performance, Environmental Performance, Social Performance, Board Involvement, Company Performance, and Content Analysis. DOI : 10.7176/JESD/10-10-21 Publication date :May 31 st 2019
Highlights
Analysis and Discussion The results of the descriptive analysis using SPPS 24 in table 1 shows that companies listed on the Indonesia Stock Exchange have an average company value of 1.3563
The results of the classic assumption test as shown in Figure 1 that that probability plots are seen to spread around the diagonal line and still follow the direction of the diagonal line
This means that all research data are normally distributed and the sample in this research is feasible for further research
Summary
Earth is the home of human and serves as a place for human to carry out their various activities. If the environment is damaged or the resources are depleted due to the human’s greed the one who will lose is the human themselves. That is the importance reason for human not to destroy their nature, and carry out the development by taking into account the sustainability of its natural resources. The main reason for the importance of the sustainable development is because the number of people has been exceeded the ideal capacity of the inhabitants of the earth since decades ago. Because natural resources must be able to be used up by the generation, it is necessary to make the natural resources be used as efficiently as possible and their added value is increased as well, how all these activities form a recycling process so that everything can be utilized. There needs to be harmonization in all levels of society and government intervention in the economic processes which are related to the process of sustainable development so that the exploitation of the natural resource does not occur or harm certain parties
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