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The Effect of Economic, Environmental and Social Dimension Disclosure in Sustainability Report on Earnings Response Coefficient. Study of Banks in Indonesia, Malaysia and Thailand

Author

Listed:
  • Kezia Nabella KUSUMA

    (Atma Jaya Catholic University of Indonesia)

  • Yanuar Nanok SOENARNO

    (Atma Jaya Catholic University of Indonesia)

Abstract

This study aims to determine whether disclosure of the economic, environmental and social dimension in sustainability reporting by the company affects the earnings response coefficient. The research was conducted on the banking sector company listed in Indonesia, Malaysia and Thailand with the research period of 2020. The sampling technique is using the purposive sampling method with the total of 62 companies. The analysis techniques used in this study are descriptive analysis techniques and data regression by using EViews 12. The result shows a different effect between economic, environmental and social dimension disclosure on sustainability reports towards the earnings response coefficient in each country. In Indonesia, the economic, environmental and social disclosure has a significant effect on the earnings response coefficient. While only the economic dimension has a significant influence on the earnings response coefficient in companies listed in Malaysia and Thailand. This could be done by looking at the economic behaviour, especially in investing in each country.

Suggested Citation

  • Kezia Nabella KUSUMA & Yanuar Nanok SOENARNO, 2022. "The Effect of Economic, Environmental and Social Dimension Disclosure in Sustainability Report on Earnings Response Coefficient. Study of Banks in Indonesia, Malaysia and Thailand," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 3(6), pages 51-61, June.
    • Handle: RePEc:ahd:journl:v:3:y:2022:i:6:p:51-61
    DOI: 10.37945/cbr.2022.06.06
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    References listed on IDEAS

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    1. Sri Mulyani & Nur Fadjrih Asyik & Andayani Andayani, 2007. "Faktor-Faktor Yang Mempengaruhi Earnings Response Coeficient Pada Perusahaan Yang Terdaftar Di Bursa Efek Jakarta," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 11(1), pages 35-45, Juni.
    2. Lev, B, 1989. "On The Usefulness Of Earnings And Earnings Research - Lessons And Directions From 2 Decades Of Empirical-Research," Journal of Accounting Research, Wiley Blackwell, vol. 27, pages 153-192.
    3. Paul K. Chaney & Debra C. Jeter, 1992. "The effect of size on the magnitude of long†window earnings response coefficients," Contemporary Accounting Research, John Wiley & Sons, vol. 8(2), pages 540-560, March.
    4. Sri Mulyani & Nur Fadjrih Asyik & Andayani Andayani, 2007. "Faktor-Faktor yang Mempengaruhi Earnings Response Coeficient pada Perusahaan yang Terdaftar di Bursa Efek Jakarta," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 11(1).
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    More about this item

    Keywords

    sustainability report; earnings response coefficient; economic aspects; social aspects; environmental aspects;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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