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State Ownership, Family Ownership, and Sustainability Report Quality, The Moderating Role of Board Effectiveness

Author

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  • Astrid Rudyanto

    (Trisakti School of Management, Indonesia)

Abstract

"Objective � This research analyzes the effect of state ownership, family ownership, and the effectiveness of the board�s moderating role on sustainability report quality of Indonesian companies. Methodology/Technique � Sustainability report quality is a factor analysis of percentage of disclosure quantity score with GRI G3 and G4 (content analysis), the natural logarithm of the number of pages, existence of opinion, and existence of an independent party assessment on GRI application check, independent party assessment. Board effectiveness is divided into three categories: independence, size, and competence. Findings � Using data of 123 companies listed on the Indonesian Stock Exchange between 2010 and 2014, it is found that state ownership, board effectiveness based on independence, and competence positively affect sustainability report quality while family ownership and board effectiveness based on size do not affect sustainability report quality. For board effectiveness moderating role, board effectiveness based on independence and size strengthen state ownership effect on sustainability report quality. Meanwhile, board effectiveness does not weaken family ownership effect on sustainability report quality. Novelty � This research contributes to literature regarding the relationship between corporate governance and sustainability report quality, particularly the effectiveness of a board�s moderating role to sustainability report quality, which is scarcely researched."

Suggested Citation

  • Astrid Rudyanto, 2017. "State Ownership, Family Ownership, and Sustainability Report Quality, The Moderating Role of Board Effectiveness," GATR Journals afr129, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr129
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    References listed on IDEAS

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    Cited by:

    1. Yuanyuan Hu & Shouming Chen & Runshi Liu & Yi Dai, 2023. "Managers’ aspirations and quality of CSR reports: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    2. Mesut Doğan & Mustafa Kevser, 2021. "Relationship Between Sustainability Report, Financial Performance, and Ownership Structure: Research on The Turkish Banking Sector," Istanbul Business Research, Istanbul University Business School, vol. 50(1), pages 77-102, May.
    3. Doshi, Medha & Jain, Riidhi & Sharma, Dipasha & Mukherjee, Deepraj & Kumar, Satish, 2024. "Does ownership influence ESG disclosure scores?," Research in International Business and Finance, Elsevier, vol. 67(PA).
    4. Francesca Gennari, 2019. "How to Lead the Board of Directors to a Sustainable Development of Business with the CSR Committees," Sustainability, MDPI, vol. 11(24), pages 1-17, December.

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    More about this item

    Keywords

    Sustainability Report Quality; State Ownership; Family Ownership; Board Effectiveness; Corporate Governance; Stakeholder.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • 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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