SUSTAINABILITY REPORT AND FIRM PERFORMANCE: STUDY IN MINING AND METAL AND FOOD PROCESSING INDUSTRY INDONESIA STOCK EXCHANGE 2014-2017

Abstract

The aim of this study is to give empirical evidence about the effect of three disclosure dimensions of Sustainability Reporting (SR) to firm performance using ROA and Tobin’s Q. The three dimensions of SR consist of economic dimension, environmental dimension, and social dimension. The argument of the relationship between SR and companies' performance in this study is developed base on good management theories that argue that there is a high correlation between good management practice and Corporate Social Performance (CSP), then there will be a positive impact of SR on the company’s performance. The sample of this study comprises of 60 listed companies in IDX in 2014-2017, in mining and metal and food processing industries. The sampling method is purposive sampling.  The results show two dimensions of SR (economic dimension and social dimension) has an impact on market value (Tobin’s Q) but not on book value (ROA).