Sustainability Reporting and Company s Value

Abstract

Purpose: The purpose of this study is to find out how the influence of the disclosure of sustainability reporting on the value of state-owned enterprises (SOEs) Research Methodology: The research approach used quantitative. This research sample selection method uses a purposive sampling method with a total of 8 SOEs listed in IDX that meet the criteria. Results: sustainability reporting has a significant negative effect on firm value, this indicates that the disclosure of Corporate Social Responsibility (CSR) by the company reduces the value of state-owned companies listed on the BEI. Most companies only focus on financial factors and companies pay less attention to non-financial factors such as CSR, it can be seen that the level of CSR disclosure made by the company is very low. Limitations: Data limitations then this study only uses a sample of SOEs listed in IDX and does not add good corporate governance variables to improve the relationship between sustainability reporting and company ’s value. Contribution: based on stakeholder theory to improve the relationship between stakeholder and company, SOEs must disclose CSR activities to improve the organization image and impact on the increasing value of the firms. Adding GCG as a moderation variable can maximize sustainability reporting in SOEs.