Sustainability Reporting Award Research Articles

Value Relevance, Sustainability Reporting Award, and Board Structure: An Influence and Analysis of Value Relevance

Research on the relevance of the value of sustainability reporting as measured by the Sustainability Reporting Award (SRA) in Indonesia is still rarely studied. In Indonesia, many go-public companies have not realized the importance of reporting the environment and succeeded in getting the SRA due to the costs incurred in carrying out sustainability reporting activities in accordance with Global Reporting Initiative (GRI). The research examined whether there was value relevance in sustainability reporting information and a role for the board structure in supporting companies to obtain awards or not. The research was conducted with six-year data, with a sample of 29 companies that had received SRA at least once from 2014 to 2019. Then, Ohlson’s model was used to measure the value relevance of accounting information and SR, which was seen through changes in R2. Board structure was proxied with board size, board independence, and board meeting. The test was conducted using SmartPLS. The research results indicate that information on obtaining the SRA does not have the added value relevance, as evidenced by the R2 value. It does not increase and has an insignificant relationship with stock prices. Meanwhile, the board structure that can influence the company in obtaining the SRA is only the independence of the board. The research contributes to showing the value relevance of accounting information and sustainability reporting observed through SRA in Indonesia. Besides that, observing the roles of board structure encourages sustainability reporting of a company in acquiring an SRA.

THE ROLE OF PROFITABILITY IN THE RELATIONSHIP BETWEEN ENVIRONMENTAL DISCLOSURE AND FIRM VALUE

This study aimed to examine the consistency of the effects of environmental disclosure on firm value and investigate profitability as a moderating variable. The samples in this study were companies that won the Sustainability Reporting Award (SRA) and the Asia Sustainability Reporting Rating (ASRAT) presented by the National Center for Sustainability Reporting (NCSR) in the 2014-2020 period. A total of 82 companies were sampled. This study used secondary data taken from company databases and the Indonesia Stock Exchange (IDX)/Bursa Efek Indonesia (BEI). The multiple regression equation model was analyzed using IBM SPSS 20 software. The results showed that environmental disclosure negatively and significantly affected firm value. Furthermore, research documented that environmental disclosure had a positive and significant effect on firm value when profits were high. These findings have provided evidence that the differences in results on the relationship between environmental disclosure and firm value are due to a conditional factor, namely profitability. Based on the stakeholder theory, fulfilling stakeholder interests has a positive effect if the company has good financial performance. Meanwhile, based on the signaling theory, financial information is required for non-financial information to be effective.

The Awareness of the Indonesian Market Toward the Corporate Social Responsibility of a Company

The existence of CSR institutions and associations coherent with several laws and regulations concerning CSR applied in Indonesia indicates that Indonesia gives more attention to the importance of CSR. The increasing number of parties who appreciate CSR performance also motivates companies to commit to implementing CSR. However, the next question is related to whether the public (market) responds to the efforts of the government, companies, and all parties involved in the progress of CSR in Indonesia or not. Specifically, the question lingers around whether the Indonesian market is aware of the importance of CSR or not. Departing from the two questions, the study aims to determine the response of the Indonesian market after the CSR-related information has been identified since market responses will show awareness of the importance of CSR. The data that have been used in the study are the secondary ones and include the stock prices that come from 5 days before and 5 days after the announcement of the Indonesia Sustainability Reporting Award (ISRA) 2017 and 2018. The hypothesis test results show no differences in stock prices between 5 days before and 5 days after the announcement of the ISRA award. On the contrary, the hypothesis test results show that the Indonesian market has not responded to CSR information of a company. The reason is that the Indonesian market does not consider CSR information relevant for investment decision making.

PENGARUH SUSTAINABILITY REPORT TERHADAP KINERJA KEUANGAN PERUSAHAAN

This study aims to examine the impact of disclosure of sustainability economic (EC), social dimension (SO) and environmental dimension (EN) on issuer's financial performance in 2012-2015 period in mineral and mineral mining sector, energy, gas and petroleum, and infrastructure, and companies that won the SRA (Sustainability report Award) competition in 2015, each winning 1, 2, 3. The research method used in this research is quantitative approach, using cross section data. and it have 40 sample of firm. The independent variables in this study are sustainability reports as measured by economic dimensions (EC), Social (SO), and Environment (EN). The dependent variable in this study is the company's financial performance which can be measured by liquidity ratio, solvability, activity, profitability and investment. Regression used in this research is multiple regression. The result of the research shows that there is influence of sustainability report of economic dimension (EC) with company financial performance. The sustainability report of social dimension and environmental dimension has no effect on company's financial performance. The results of this study are expected to provide benefits to companies, investors, and other stakeholders in the various functions of sustainability reporting mechanisms. The author uses only one control variable are firm size, if adding another control variable, there may be an independent variable influence on the dependent.

PENGARUH PELAPORAN TERINTEGRASI TERHADAP KUALITAS LABA DENGAN BIAYA KEAGENAN SEBAGAI PEMODERASI

Integrated reporting combines information about company's governance, performance, strategy, and future prospects that reflect the company's activities. As the voluntary integrated reporting practice increases, the global issue related to that is about the integrated reporting’s future implications, particularly the accounting information. In Indonesia, companies that are ready for integrated reporting are the winners the Sustainability Reporting Awards (SRA). Implementation of integrated reporting can improve earnings quality. This research is to provide evidence for the effect of integrated reporting on earnings quality and the moderating effect agency costs in it.
 The research design is a quantitative research using secondary data sources from company’s annual reports. The research object are Indonesian non-financial sector companies that are winners and non-winners of the 2015-2019 SRA which are registered in the IDX fact book 2019. This research used a moderation regression analysis model. The research contributed to three new findings: (a) integrated reporting has no effect on earnings quality; (b) agency costs weaken the effect of integrated reporting on earnings quality in non-financial sector companies; and (c) agency costs strengthen the effect of integrated reporting on earnings quality in SRA companies.

THE EFFECT OF GOOD CORPORATE GOVERNANCE, PROFITABILITY AND COMPANY SIZE ON SUSTAINABILITY REPORT DISCLOSURE

This study aims to analyze the influence of Good Corporate Governance, Profitability, Good Corporate Governance, and Company Size on Sustainability Report Disclosure. The sampling technique used was purposive sampling. The research was conducted on the participating companies of the Indonesia Sustainability Report Award (ISRA) during the 2015-2019 period. The purpose of this study was to determine the effect of Good Corporate Governance, Profitability and Company Size on Sustainability Report Disclosure. The results of this study indicate that the profitability and size of the company have no effect on the Sustainability Report Disclosure. Good Corporate Governance has a significant effect on Sustainability Report Disclosure.

Disclosure on Sustainability Reports, Foreign Board, Foreign Ownership, Indonesia Sustainability Reporting Awards and Firm Value

This study aims to investigate how disclosure on sustainability reports, foreign on boards, and foreign ownership affect firm value. Indonesia Sustainability Reporting Award (ISRA) is used to moderate the impact of the disclosure on the sustainability report on the firm value from 2013 to 2017. This study uses 37 firms as a sample with 159 observations and using panel data analysis. Subgroup analysis is used to test the existence or absence of homologizer moderation. The result showed that only the disclosure of sustainability has a positive impact on firm value. Foreign board and foreign ownership have been shown to not affect firm value. Additional testing is performed by splitting types of companies that have become state-owned enterprises (SOEs) and non-SOE, as well as kinds of services & finance and Manufacturing & others. We found that foreign commissioners in the service and finance sectors category have a positive effect on firm value, and foreign ownership in State-Owned Enterprises (SOEs) has a positive influence on firm value. Therefore, it is suggested that the organization of ISRA should disclose their winning criteria since it can be used as information in decision-making

The effect of environmental and social disclosure on firm value with financial performance as intervening variable

This research analyzes the effect of environmental and social disclosure (ESD) on firm value (FV) with financial performance (FP) as an intervening variable. Objects of this research are companies involved in Indonesia Sustainability Reporting Award (ISRA). The samples are companies that participated in the ISRA during the period starting from 2013 to 2016. The sample of this research is 15 companies if the period used four years, then the final number of observations used for further analysis is 60. The result of this study shows four essential findings. First, the direct effect of ESD on FV is not significant, the impact of ESD on FP is positive and significant, the effect of FP on FV is positive and significant, FP mediates the impact of social and economic performance on FV. This finding confirms the application of legitimacy and stakeholder theory in developing countries where stakeholders have no power to pressure corporate management into social and environmental activities. The results also benefit managers and standards setters. For managers, this finding emphasizes that ESD is a crucial factor in legitimizing the company's products in the eyes of stakeholders. For standard makers, the results are useful for them to develop social and environmental reporting guidelines.

The Effect of Integrated Firm’s Reporting on Firm’s Performance

This study investigates the effect of integrated firm’s reporting on firm’s performance. The integrated financial reporting contains of financial, good corporate governance (GCG) and sustainability reporting that shows company’s responsibility to capital providers, environment and social. The important question is whether more disclosure indicates more informative for decision maker. Therefore, it is important to identify which reporting useful for primary users. This study examines 108 public comphanies that granted ISRA (Indonesia Sustainability Reporting Award) from 2013-2017 for firm’s performance, GCG index, and sustainability index. The result shows that information for capital providers can be used for investment and credit decision. This finding indicates company faces agency conflict, so company’s disclosure dedicates for primary users, namely creditor and shareholder. This finding also indicate that earnings more informative than good corporate governance and sustainability reporting. It may show the concentrated ownership in Indonesia encourages management to behave less aggressive.
 Keywords: Tobin’s Q, integrated firm’s reporting, good governance, sustainability reporting, earnings

Profitabilitas Sebagai Pemoderasi Pengaruh Pengungkapan Sustainability Reporting Pada Nilai Perusahaan Pemenang Indonesian Sustainability Reporting Awards

This study aims to determine the effect of Sustainability Reporting on firm value and determine the ability of profitability in moderating the effect of Sustainability Reporting on firm value. This research was conducted on the winners of the Indonesian Sustainability Reporting Awards (ISRA) in 2015-2018. The number of samples taken as many as 13 companies using purposive sampling techniques. The data analysis technique used is Moderated Regression Analysis (MRA). Based on the results of the analysis found that Sustainability Reporting has a positive effect on firm value and profitability strengthens the effect of Sustainability Reporting on firm value.
 Keywords: Sustainability Reporting; Firm Value; Profitability.

THE EFFECT OF COMPANY'S SIZE, INDUSTRIAL TYPE, PROFITABILITY, AND LEVERAGE TO SUSTAINABILITY REPORT DISCLOSURE

Companies that reveal sustainability reports from year to year are increasing, but the number of companies is still far behind companies that do not discloes. To encourage companies to create sustainability reports, the National Center for Sustainability Reporting (NCSR) holds the annual Sustainability Reporting Award (SRA) that have been held since 2005. This study was conducted to determine the effect of company's size, industry type, profitability, and leverage on disclosure of sustainability report. The population used in this study are companies listed in the Sustainability Reporting Award (SRA). The technique of selecting sample is using purposive sampling.Sample according to the criteria obtained 20 companies during the observation period 2014-2016. Analyzing used in this research is multiple regression and hypothesis test using t test, f test, and coefficient of determination. The results of this study indicate that industry type and leverage variables affect the disclosure sustainability report. While the variable size of the company, and profitability does not affect the disclosure sustainability report.

A Comparative Study on Financial Performance of the Participants in Indonesia Sustainability Reporting Awards

The main objective of this research is to analyze the financial performance of companies that have participated in Indonesia Sustainability Reporting Awards (ISRA) competitions in 2009–2017, both regularly and temporarily. This study also analyzes the differences in financial performance in terms of industrial sector factors and the number of workers. This research applies secondary data, which is carried out with independent t–test and multivariate test. Companies that consistently participate in ISRA competitions have a smaller level of leverage, and more exceptional ability to generate operating cash. Companies with fewer than two thousand employees are more productive than companies with ten thousand employees. However, when the number of employees is more than ten thousand people, productivity managing assets is even better. It seems that investors appreciate small companies more. Compared to companies in the banking sector, companies in the manufacturing and non–manufacturing industries have more substantial debts, more productive assets, and higher stock market values. It seems that investors appreciate this ISRA competition more for non–banking companies.

The Effect of Sustainibility Reporting Disclosure and Its Impact on Companies Financial Performance

<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>

ANALISIS PERBEDAAN ABNORMAL RETURN, VOLUME DAN HARGA PERDAGANGAN SAHAM SEBELUM DAN SESUDAH PENGUMUMAN INDONESIA SUSTAINABILITY REPORTING AWARD (ISRA)

The objective of this research was to prove empirically the differences between the abnormal return, the trading volume, and the trading price before and after the Indonesia Sustainability Reporting Award (ISRA) announcement. There are 3 independent variables of this research i.e., the abnormal return, the trading volume and the trading price. The population of this research was companies participated in the ISRA award in the period of 2011-2016. The sampling technique used in this research was the purposive sampling. The number of samples of this research was 112 companies obtained during 2011-2016. The data analysis technique used in this research was the wilcoxon signed-rank test. The result of this research was that the trading volume had a significant difference before and after the Indonesia Sustainability Reporting Award (ISRA) announcement; while, the abnormal return and the trade price had an insignificant difference before and after Indonesia Sustainability Reporting Award (ISRA) announcement.

Factors Influencing Financial Performance Through Sustainability Reporting in Indonesia

The study aims to examine factors influence financial performance through sustainability reporting. The sample is companies that received an Indonesia Sustainability Reporting Awards (ISRA) in 2016. This study uses secondary data from the annual report 2012-2016. The first result shows that board size and sustainability are not significant. The second and third result shows the size and leverage have a positive impact on sustainability reporting. The last result shows that sustainability reporting has a positive and significant effect on financial performance. The contributions in this study, first, it shows the mediating effect of sustainability reporting on the relationship between these factors and financial performance. Second, this study also investigates companies that received ISRA in 2016. The limitation of this study is that it focuses on companies that received the award fromISRA in 2016. Another limitation, the framework is not the best framework.

The Effect of Stock Ownership Toward the Corporate Social Responsibility (CSR) Disclosure

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Corporate Social Responsibility (CSR) dan Reputasi Perusahaan

Unethical and irresponsibilty behaviour has recently led to an increasing popularity of Corporate Social Responsibility (CSR) worldwide. CSR is considered not only focusing on the right business but also emphasizing the business responsibility for dynamic environmental change. The reputation of companies that engage in CSR activities will likely improve in the eyes of stakeholders as stakeholders obtain information regarding the company's activities or products presented in the CSR report, which in turn could indirectly affects the reputation. This study aims to analzye whether the CSR activities carreid out by the company will improve reputation. Research sample consists of 36 non banking and financial institution company listed in Indonesian Stock Exchange (BEI) period 2013-2015 who was declared as winner of Sustainability Report Award (SRA) 2016. The result of hypothesis testing based on simple linear regression indicate that CSR has negative effect to company reputation.

Pengaruh Good Corporate Governance dan Karakteristik Perusahaan Terhadap Pengungkapan Corporate Social Responsibility

This study examine the role of good corporate governance (GCG) and firm characteristics to expand corporate social responsibility (CSR) disclosure. CSR disclosure is measured by fraction of total items reported in Sustainability Report to 58 items index released by Global Reporting Initiative. Samples are collected from listed companies in BEI (Bursa Efek Indonesia) and have been participated in Indonesian Sustainability Report Award (ISRA during 2014-2016. As much as 22 companies have complete data for further analysis. Using multiple regression analysis, results showed that profitability have a positive effect on CSR disclosure and become the only accepted hypothesis in this research; size of board of commissioner, company size, and leverage have no effect on CSR disclosure; while audit committee meeting frequency have negative effect on CSR disclosure.

ISRA announcement influence on Abnormal Return and Stock Trade Volume

This study aims to analyze the influence of the Indonesia Sustainability Reporting Awards (ISRA) announcement from 2009 to 2016 on stock price, which is seen from the change of abnormal return and stock trading volume prior and after the date of the announcement. The samples for this research are publicly-listed companies that participated in ISRA from 2009 until 2016, both award winners and nonwinners. The data used are secondary data consisting of abnormal return and stock trading volume on a daily basis. The research test utilized the paired t-test method. The results of this research indicate that the ISRA announcement does not affect the abnormal return and stock trading volume, as seen from the absence of differences in abnormal return and stock trading volume before and after the date of the announcement

PERBEDAAN ABNORMAL RETURN DAN VOLUME PERDAGANGAN SAHAM SEBELUM DAN SESUDAH PENGUMUMAN SUSTAINABILITY REPORTING AWARD (SRA) TAHUN 2017

This study aims to prove empirically the differences of abnormal return and tradingvolume that occurred before and after the announcement of Sustainability ReportingAward (SRA) in 2016. The number of samples used in this study were 9 companiesconsisting of listed companies in Indonesia Stock Exchange which won the SRA 2016award by using sustainability reporting as indicators based on GRI G-4. The data usedare secondary data in the form of daily closing stock price, composite stock price index(IHSG), and daily stock trading volume obtained from www.idx.co.id andwww.finance.yahoo.com with 11 days observation period. Calculation of abnormalreturn using market-adjusted model while for trading volume of stock using tradingvolume activity (TVA). Hypothesis testing is done by using Wilcoxon Sign Rank test.The results showed that there was no difference in abnormal return and stock tradingvolume before and after thevannouncement of Sustaianability Reporting Award (SRA)in 2016.