Factors Influencing Sustainability Reporting and Financial Performance in Indonesia

Abstract

The study aims to examine factors impact on financial performance through sustainability reporting.  The sample is companies that received an Indonesia Sustainability Reporting Awards (ISRA) in 2016. This study uses secondary data from annual report 2012-2016. The first result shows that board size and sustainability are not significant. Second and third result shows the size and leverage have a positive impact on sustainability reporting. The last result shows that sustainability reporting has a positive and significant effect of financial performance. The contributions in this study,first, it shows the mediating effect of sustainability reporting on the relationship between these factors and financial performance. Second, this study also investigates companies that received ISRA in 2016.  The limitation of this study is that it focuses on companies that received the award from ISRA in 2016. Another limitation is the framework not the best framework.