Examining The Effect of Sustainability Report Disclosure to Firm Value: A Study Based on Listed Public Companies in Indonesia Stock Exchange
DOI:
https://doi.org/10.38035/dijefa.v4i1.1746Keywords:
Sustainability Report, Public Company, Firm ValueAbstract
Companies that mitigate and improve the environment can take advantage of this as a marketing tool in general. Consumers will support companies that have a positive impact on their surroundings. One of the tools that can be used as a form of responsibility and marketing tool is a sustainability report. Sustainability report are reports published by organizations or companies that explain the economic, environmental, and social impacts as result of their operating activities. The report also explains about corporate culture and governance as well as its relationship with the company's strategy and commitment to maintain the sustainability of the triple bottom line (people, planet, profit). Sustainability reporting disclosure index (SRDI) are measured from 89 listed public companies in Indonesia. Regression analysis took place for examining the effect of SRDI to the corresponding firm value represented by Tobin’s Q. Only certain limited sample data showed that there’s a significance effect between sustainability report disclosure and firm value. Enterprises who haven’t disclose their sustainability report still worth high value in share trade. This condition occurs due to investors' decisions to invest are influenced by media coverage, economic conditions, and changes in stock prices.
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Ryan, F., Coughlan, M., & Cronin, P. (2013). Interviewing in qualitative research: The one-to-one interview. International Journal of Therapy and RehabilitationVol. 16, No. 6, 309-314.
Schadewitz, H., & Niskala, M. (2010). Communication via responsibility reporting and its effect on firm value in Finland. Wiley Corporate Social Responsibility and Environmental Management Vol. 17, Issue 2, 96-106.
Sudiyanto, B., & Puspitasari, E. (2010). Tobin’s Q dan Altman Z-Score sebagai Indikator Pengukuran Kinerja Perusahaan. Kajian Akuntansi, Vol 2, No. 1, 9-21.
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Tarigan, J., & Semuel, H. (2014). Pengungkapan Sustainability Report dan Kinerja Keuangan. Jurnal Akuntansi dan Keuangan, Vol 16, No. 2, 88-101.
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Triola, M. F. (2011). Essentials of Statistics. London: Pearson.
United Nation Global Compact. (2013). Global Corporate Sustainability Report 2013. New York: United Nation Global Compact.
Widarjono, A. (2006). Ekonometrika untuk Analisis Ekonomi dan Keuangan. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia.
Arowoshegbe, A. O., & Emmanuel, U. (2016). Sustainability and Triple Bottom Line: An Overview of Two Interrelated Concepts. Igbinedion University Journal of Accounting, 2, 88-126.
Astara, O., Mitoula, R., & Heodoropoulou, E. (2015). Corporate Social Responsibility: A Marketing Tool and/or a Factor for the Promotion of Sustainable Development for Companies? A Review of Companies in the Athens Stock Exchange. International Journal on Strategic Innovative Marketing, Vol. 02, 17-33.
Bachoo, K., Tan, R., & Wilson, M. (2013). Firm Value and the Quality of Sustainability Reporting in Australia. Australian Accounting Review No. 64, Vol 23, 67-87.
Ching, H. Y. (2014). Scoring Sustainability Reports using GRI indicators: A Study based on ISE and FTSE4Good Price Indexes. Journal of Management Research Vol. 6, No. 3, 27-48.
Dang, H. N., Vu, V. T., Ngo, X. T., & Hoang, H. T. (2019). Study the Impact of Growth, Firm Size, Capital Structure, and Profitability on Enterprise Value: Evidence of Enterprises in Vietnam. The Journal of Corporate Accounting & Finance, 144-160.
Ernst&Young, & Boston College. (2016). Value of Sustainability Reporting: A Study by EY and Boston College Center for Corporate Citizenship. Londo: Ernst&Young.
Fiakas, D. (2005). Tobin'sq: Valuing Small Capitalization Companies. Crystal Equity Research.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. New York: Cambridge University Press.
Ghozali, I., & Ratmono, D. (2018). Analisis Multivariat dan Ekonometrika: Teori, Konsep, dan Aplikasi dengan Eviews 10. Semarang: Badan Penerbit .
Global Reporting Initiative. (2013). G4 Sustainability Reporting Guidelines. Amsterdam: Global Reporting Initiative.
Global Reporting Initiative. (2019). Consolidated Set of GRI Sustainability Reporting Standards 2019. Amsterdam: Global Reporting Initiative.
Gujarati, D. (2003). Basic Econometrics. New York: McGraw Hill.
Hayes, A. (2021). Q Ratio: Tobin's Q. New York City: Investopedia. Retrieved September 14, 2022, from https://www.investopedia.com/terms/q/qratio.asp
Hidayah, N., Badawi, A., & Nugroho, L. (2019). Factors Affecting The Disclosure of Sustainability Reporting. International Journal of Commerce and Finance, Vol 5, No. 2, 219-229.
Ikatan Akuntan Indonesia. (2015). Pernyataan Standar Akuntansi Keuangan 01: Penyajian Laporan Keuangan (Revisi 2015). Jakarta: Ikatan Akuntan Indonesia.
Indrarini, S., Chandrarin, G., & Subiyantoro, E. (2019). Managerial Ownership, Earnings Predictability and Firm Value on Indonesia Stock Exchange. IOSR Journal of Business and Management (IOSR-JBM), 39-46.
Johansson, J., & Zametica, A. (2019). GRI- Quality and Firm Performance: A Quantitative Study about the Impact of Sustainability Reports Quality on Firm Performance and Firm Value in the Swedish Manufacturing Industry. Karlstad: Karlstad Business School.
KPMG. (2017). The Road Ahead: The KPMG Survey of Corporate Responsibility Reporting 2017. Amstelveen: KPMG.
Latifah, S. W., & Luhur, M. B. (2017). Pengaruh Pengungkapan Sustainability Report terhadap Nilai Perusahaan dengan Profitabilitas sebagai Pemoderasi. Jurnal Akuntansi dan Bisnis, Vol 17, No. 1, 13-18.
Lee, D., Lee, S., & Cho, N.-E. (2019). Voluntary Disclosure and Market Valuation of Sustainability Reports in Korea: The Case of Chaebols. MDPI Open Access Journal, Vol 11, No. 3577, 1-20.
Loh, L., Thomas, T., & Wang, Y. (2017). Sustainability Reporting and Firm Value: Evidence from Singapore-Listed Companies. MDPI Open Access Journal, Vol 9, No. 2112, 1-12.
Lonkani, R. (2018). Firm Value: Theory and Empirical Evidence. London: IntechOpen.
Mahastanti, L. A. (2011). Faktor-Faktor yang Dipertimbangkan Investor dalam Melakukan Investasi. Jurnal Manajemen Teori dan Terapan, Vol 4, No. 3, 37-51.
Nugroho, L., Badawi, A., & Hidayah, N. (2019). Discourses of Sustainable Finance Implementation in Islamic Bank (Cases Studies in Bank Mandiri Syariah 2018). International Journal of Financial Research Vol 10 No. 6, 108-117.
Nugroho, P. I., & Arjowo, I. S. (2014). The Effects of Sustainability Report Disclosure Towards Financial Performance. International Journal of Business and Management Studies, Vol 3, No. 3, 225-239.
PricewaterhouseCoopers. (2019). Purpose and Impact in Sustainability Reporting: A Review of Leading UK Companies. London: PricewaterhouseCoopers.
Radin, A. J. (2019). Assurance Attestation Statements on Sustainability Reports. The CPA Journal; New York Vol. 89, Iss. 7, 6-8.
Rizki, M. K., Agriyanto, R., & Farida, D. N. (2019). The Effect of Sustainability Report and Profitability on Company Value: Evidence from Indonesian Sharia Shares. Economica: Jurnal Ekonomi Islam Vol. 10, No. 1, 117-140.
Ryan, F., Coughlan, M., & Cronin, P. (2013). Interviewing in qualitative research: The one-to-one interview. International Journal of Therapy and RehabilitationVol. 16, No. 6, 309-314.
Schadewitz, H., & Niskala, M. (2010). Communication via responsibility reporting and its effect on firm value in Finland. Wiley Corporate Social Responsibility and Environmental Management Vol. 17, Issue 2, 96-106.
Sudiyanto, B., & Puspitasari, E. (2010). Tobin’s Q dan Altman Z-Score sebagai Indikator Pengukuran Kinerja Perusahaan. Kajian Akuntansi, Vol 2, No. 1, 9-21.
Swarnapali, R., & Le, L. (2018). Corporate Sustainability Reporting and Firm Value: Evidence from a Developing Country. International Journal of Organizatonal Innovation, Vol. 10 Issue 4, 69-78.
Tarigan, J., & Semuel, H. (2014). Pengungkapan Sustainability Report dan Kinerja Keuangan. Jurnal Akuntansi dan Keuangan, Vol 16, No. 2, 88-101.
The Association of Chartered Certified Accountants. (2013). The Business Benefits of Sustainability Reporting in Singapore. Singapore: The Association of Chartered Certified Accountants.
Triola, M. F. (2011). Essentials of Statistics. London: Pearson.
United Nation Global Compact. (2013). Global Corporate Sustainability Report 2013. New York: United Nation Global Compact.
Widarjono, A. (2006). Ekonometrika untuk Analisis Ekonomi dan Keuangan. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia.
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2023-03-18
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