The Effect Of Financial Performance, Leverage, Good Corporate Governance And Company Size On The Sustainability Report (Study Of Companies Listed On The IDX, LQ 45 In Year 2015 – 2019)

Authors

  • Nurdin NURDIN Lambung Mangkurat University, Indonesia
  • Padlah RIYADI Lambung Mangkurat University, Indonesia

DOI:

https://doi.org/10.38142/jebd.v1i1.34

Keywords:

Profitabillity, Leverage, institusional ownership, audit commite, independent commissioner, company size, sustainability report

Abstract

Purpose:
The research aims to determine the effect of financial performance, leverage, good corporate governance and company size on sustainability reports (study of companies listed on the LQ 45 2015 – 2019). Entity business management is currently not only based on economic aspects but also social aspects as the main basis for decision makers.
Methodology:
This study aims to determine and analyze the effect of profitability, leverage, institutional ownership, audit committee, independent commissioners, and company size on the sustainability reports of LQ 45 companies listed on the IDX in 2015-2019, so that 85 research samples were determined. Data was processed and analyzed using multiple linear regression.
Findings:
Related to sustainability in full and detail in the annual report or make a separate report regarding the company's social and environmental activities in the sustainability report or sustainability reporting. FOR Investors Investment is given to entities engaged in the natural resource management sector. Disclosure of sustainability reports is a consideration because entities that carry out and report corporate social responsibility will undoubtedly be more attractive to investors. After all, this gives legitimacy to the company's good value in the eyes of investors.
Implication:
Future research is expected to use different objects, such as companies in the manufacturing and mining sectors, which are directly correlated with environmental aspects and different indices, for example, SRI-KEHATI, LQ45, Kompas 100, and so on. The different research times and variables are also a suggestion for other researchers—the value of shares, aspects of capital, and other financial performance.

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References

Aini, NN (2011). The Effect of Characteristics of Good Corporate Governance (GCG) on Disclosure of Corporate Social Responsibility (CSR) (Empirical Study of Non-Financial Companies Listed on the Indonesian Stock Exchange). Diponegoro University Thesis.

Alfarizi, AG (2016). The Influence of Media Exposure, Company Size, Leverage, and Share Ownership Structure on Disclosure of Corporate Social Responsibility (Empirical Study of Manufacturing Companies Listed on the IDX in 2013-2015). Journal of Yogyakarta Muhammadiyah University.

Alhamra, IT (2016). Analysis of the Effect of Good Corporate Governance and Profitability Levels on Disclosure of Accounting Information (Empirical Study on the Top 50 Issuers with the Highest CG Scores from IICD Results through the ASEAN Corporate Governance Scoreboard Approach). INDOCOMPAC National Seminar Proceedings.

Aliniar, D. (2017). Influence of the Board of Commissioners, Institutional Share Ownership, Proportion of Independent Commissioners, Audit Committee Size, Concentrated Share Ownership, and Company Size on Sustainability Report Disclosures.

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Published

31-01-2023

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