IDEAS home Printed from https://ideas.repec.org/a/ers/ijfirm/v11y2021i1p24-37.html
   My bibliography  Save this article

The Determinant Factors of Sustainability Report Quality and Corporate Performance: An Empirical Study

Author

Listed:
  • Nurul Hidayah
  • Lucky Nugroho
  • Hendy Prihanto

Abstract

Purpose: This study aims to obtain evidence and conclude that the quality of the sustainability report depends on stakeholder pressure, financial performance, and good governance so that the company's reputation and public trust will be better. The purpose of this research is to examine the determinant factors of sustainability report, including environmental, employee shareholder pressures and board of commissioners. Design/Methodology/Approach: Analysis of the data in this study using multiple regression models, supported by secondary data and purposive sampling with the criteria of companies that publish sustainability reports in Indonesia. Findings: This research indicates that environmental and shareholder pressures affect the quality of the sustainability report. Pressure from employees and the board of commissioners does not affect the sustainability report. Furthur, ROA is proven not to moderate the influence of environmental pressures, shareholders, employees, and commissioners on the sustainability report's quality. Practical Implication: The results of this research would enhance the quality of sustainability report in Indonesia by prioritizing the role of good governance and stakeholders interested. Originality/Value: The authenticity of this study is to provide empirical proof to the previous literature that environmental pressure, employee pressure, stakeholders pressure and, boards of commissioners are affiliated with the sustainability report quality.

Suggested Citation

  • Nurul Hidayah & Lucky Nugroho & Hendy Prihanto, 2021. "The Determinant Factors of Sustainability Report Quality and Corporate Performance: An Empirical Study," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(1), pages 24-37.
    • Handle: RePEc:ers:ijfirm:v:11:y:2021:i:1:p:24-37
    as

    Download full text from publisher

    File URL: https://journalfirm.com/journal/247/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Geert Braam & Roy Peeters, 2018. "Corporate Sustainability Performance and Assurance on Sustainability Reports: Diffusion of Accounting Practices in the Realm of Sustainable Development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(2), pages 164-181, March.
    2. Paul Shrivastava & Amr Addas, 2014. "The Impact of Corporate Governance on Sustainability Performance," Post-Print hal-01513941, HAL.
    3. Md. Abdul Kaium Masud & Mohammad Nurunnabi & Seong Mi Bae, 2018. "The effects of corporate governance on environmental sustainability reporting: empirical evidence from South Asian countries," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 3(1), pages 1-26, December.
    4. Breeda Comyns, 2016. "Determinants of GHG Reporting: An Analysis of Global Oil and Gas Companies," Journal of Business Ethics, Springer, vol. 136(2), pages 349-369, June.
    5. Astrid Rudyanto & Sylvia Veronica Siregar, 2018. "The effect of stakeholder pressure and corporate governance on the sustainability report quality," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 34(2), pages 233-249, May.
    6. Paul Shrivastava & Amr Addas, 2014. "The impact of corporate governance on sustainability performance," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 4(1), pages 21-37, January.
    7. Belen Fernandez-Feijoo & Silvia Romero & Silvia Ruiz, 2014. "Effect of Stakeholders’ Pressure on Transparency of Sustainability Reports within the GRI Framework," Journal of Business Ethics, Springer, vol. 122(1), pages 53-63, June.
    8. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hind Shafeeq Nimr Al-Maliki, 2022. "A Comparative Analysis of Reputation in Enlisted Firms on the Iraq Stock Exchange," JRFM, MDPI, vol. 15(11), pages 1-11, November.
    2. Amal Fadhil Akho Bashah Al Kaab & Asaad Mohammed Ali Wahhab, 2023. "Evidence from Iraqi Banks on the Reporting of Sustainability Determinants and Their Impact on Market Returns," Technium Social Sciences Journal, Technium Science, vol. 44(1), pages 79-102, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Drago, Carlo & Fortuna, Fabio, 2023. "Investigating the Corporate Governance and Sustainability Relationship: A Bibliometric Analysis Using Keyword-Ensemble Community Detection," FEEM Working Papers 336985, Fondazione Eni Enrico Mattei (FEEM).
    2. Karaman, Abdullah S. & Orazalin, Nurlan & Uyar, Ali & Shahbaz, Muhammad, 2021. "CSR achievement, reporting, and assurance in the energy sector: Does economic development matter?," Energy Policy, Elsevier, vol. 149(C).
    3. Willem Schramade, 2016. "Integrating ESG into valuation models and investment decisions: the value-driver adjustment approach," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 6(2), pages 95-111, April.
    4. Lu Zhang & Yuan George Shan & Millicent Chang, 2021. "Can CSR Disclosure Protect Firm Reputation During Financial Restatements?," Journal of Business Ethics, Springer, vol. 173(1), pages 157-184, September.
    5. Pamela Kent & Robyn McCormack & Tamara Zunker, 2021. "Employee disclosures in the grocery industry before the COVID‐19 pandemic," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 4833-4858, September.
    6. Waris Ali & Zeeshan Mahmood & Jeffrey Wilson & Hina Ismail, 2024. "The impact of sustainability governance attributes on comprehensive CSR reporting: A developing country setting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1802-1817, May.
    7. Md. Abdul Kaium Masud & Mohammad Nurunnabi & Seong Mi Bae, 2018. "The effects of corporate governance on environmental sustainability reporting: empirical evidence from South Asian countries," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 3(1), pages 1-26, December.
    8. Md. Abdul Kaium Masud & Mohammad Sharif Hossain & Jong Dae Kim, 2018. "Is Green Regulation Effective or a Failure: Comparative Analysis between Bangladesh Bank (BB) Green Guidelines and Global Reporting Initiative Guidelines," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    9. Andrea Vacca & Antonio Iazzi & Demetris Vrontis & Monica Fait, 2020. "The Role of Gender Diversity on Tax Aggressiveness and Corporate Social Responsibility: Evidence from Italian Listed Companies," Sustainability, MDPI, vol. 12(5), pages 1-14, March.
    10. Lee Roberts & Monomita Nandy & Abeer Hassan & Suman Lodh & Ahmed A. Elamer, 2022. "Corporate Accountability Towards Species Extinction Protection: Insights from Ecologically Forward-Thinking Companies," Journal of Business Ethics, Springer, vol. 178(3), pages 571-595, July.
    11. Lynn Buckley, 2022. "The foundations of governance: implications of entity theory for directors’ duties and corporate sustainability," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(1), pages 29-53, March.
    12. Tsalis, Thomas A. & Nikolaou, Ioannis E. & Konstantakopoulou, Fotini & Zhang, Ying & Evangelinos, Konstantinos I., 2020. "Evaluating the corporate environmental profile by analyzing corporate social responsibility reports," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 63-75.
    13. Siddique, Md Abubakar & Akhtaruzzaman, Md & Rashid, Afzalur & Hammami, Helmi, 2021. "Carbon disclosure, carbon performance and financial performance: International evidence," International Review of Financial Analysis, Elsevier, vol. 75(C).
    14. Silvia Ruiz & Silvia Romero & Belen Fernandez‐Feijoo, 2021. "Stakeholder engagement is evolving: Do investors play a main role?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1105-1120, February.
    15. Indah Fajarini Sri Wahyuningrum & Amin Chegenizadeh & Ain Hajawiyah & Sriningsih Sriningsih & Sri Utami & Mochamad Arief Budihardjo & Hamid Nikraz, 2023. "Determinants of Corporate Water Disclosure in Indonesia," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    16. Sofia Brunelli & Salvatore Sciascia & Massimo Baù, 2024. "Nonfinancial reporting in family firms: A systematic review and agenda for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 162-179, February.
    17. Tobias Gerwing & Peter Kajüter & Maximilian Wirth, 2022. "The role of sustainable corporate governance in mandatory sustainability reporting quality," Journal of Business Economics, Springer, vol. 92(3), pages 517-555, April.
    18. P. Fahad & P. Mubarak Rahman, 2020. "Impact of corporate governance on CSR disclosure," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 155-167, September.
    19. Isabel Gallego‐Álvarez, 2018. "Assessing corporate environmental issues in international companies: A study of explanatory factors," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1284-1294, December.
    20. Ali Uyar & Abdullah S Karaman & Merve Kilic, 2021. "Institutional drivers of sustainability reporting in the global tourism industry," Tourism Economics, , vol. 27(1), pages 105-128, February.

    More about this item

    Keywords

    Environmental pressure; employee pressure; stakeholders pressure; boards of commissioners; sustainability report quality.;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijfirm:v:11:y:2021:i:1:p:24-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://journalfirm.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.