Sustainability Report Disclosure and Corporate Financial Performance (Evidence from Indonesia)

Abstract

This paper aims to see the relationship between disclosures in the sustainability report (SR) towards the company's financial performance as measured by the Return On Equity (ROE) ratio. Linear multiple regression with the help of e-views was used for this study. The population for the study was the companies of LQ 45 listed on Indonesian Stock Exchange (IDX) from 2014-2018. Samples were obtained using purposive sampling method, with 18 corporate samples. The results of research that have been carried out in describing that simultaneously, the disclosure of the social, environmental and economic dimensions in sustainability reporting have the effect towards the company's financial performance as measured by profitability. However, partially, only the economic report disclosure in the SR that has an effect on profitability. Meanwhile, environmental report disclosure & social report disclosure in SR has no effect on corporate profitability.