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Strategy, practice and quality of sustainability reports on stock price crash risk

Author

Listed:
  • Dwi Ekasari Harmadji

    (Accounting Department, Faculty ofEconomics and Business, University of Brawijaya, Jl. MT. Haryono, Malang, East Java, Indonesia)

  • Bambang Subroto

    (Accounting Department, Faculty ofEconomics and Business, University of Brawijaya, Jl. MT. Haryono, Malang, East Java, Indonesia)

  • Erwin Saraswati

    (Accounting Department, Faculty ofEconomics and Business, University of Brawijaya, Jl. MT. Haryono, Malang, East Java, Indonesia)

  • Yeney W. Prihatiningtias

    (Accounting Department, Faculty ofEconomics and Business, University of Brawijaya, Jl. MT. Haryono, Malang, East Java, Indonesia)

Abstract

This study examines the relationship between stock price crash risk (SPCR) or the risk of a stock price collapse with strategy, practice, and quality of sustainability reports. This research uses archival data and verification methods. Data analysis using descriptive statistics, regression, classic assumption, and path analysis. This phenomenon arose due to the large number of SPCRs which resulted in losses for investors in the capital market. Samples were taken based on judgment sampling and found 304 reporting studied during the period from 2010-2017 (8 years). The outcomes of this study are the strategy and practice of standalone sustainability reports have a positive effect on the quality of sustainability reports. The quality of sustainability reports (SRQ) mediates the strategy and practice of standalone sustainability reports against SPCR. Key Words: Stock Price Crash Risk (SPCR), Sustainability Reports Strategy, Practice, Sustainability Reports Quality (SRQ)

Suggested Citation

  • Dwi Ekasari Harmadji & Bambang Subroto & Erwin Saraswati & Yeney W. Prihatiningtias, 2020. "Strategy, practice and quality of sustainability reports on stock price crash risk," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(3), pages 34-49, April.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:3:p:34-49
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    References listed on IDEAS

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    1. Giovanna Michelon & Antonio Parbonetti, 2012. "The effect of corporate governance on sustainability disclosure," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 477-509, August.
    2. Aman, Hiroyuki, 2013. "An analysis of the impact of media coverage on stock price crashes and jumps: Evidence from Japan," Pacific-Basin Finance Journal, Elsevier, vol. 24(C), pages 22-38.
    3. Al-Shaer, Habiba & Zaman, Mahbub, 2016. "Board gender diversity and sustainability reporting quality," Journal of Contemporary Accounting and Economics, Elsevier, vol. 12(3), pages 210-222.
    4. Azlan Amran & Shiau Ping Lee & S. Susela Devi, 2014. "The Influence of Governance Structure and Strategic Corporate Social Responsibility Toward Sustainability Reporting Quality," Business Strategy and the Environment, Wiley Blackwell, vol. 23(4), pages 217-235, May.
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