PENGARUH SUSTAINABILITY REPORT TERHADAP CORPORATE FINANCIAL PERFORMANCE

Heidy Triza Aina, Dikdik Saleh Sadikin

Abstract


This study aims to determine the effect of sustainability report on the corporate financial performance. The dependent variable of this study is sustainability report which is measured according to the SE OJK No. 16 Year 2021 requirements of sustainability reporting. Meanwhile, the independent variable of this study is corporate financial performance which is proxied by Price Earnings Ratio (PER). This study was conducted on conventional banks which are listed on Indonesia Stock Exchange (IDX) for the period 2016-2019. This study uses multiple regression analysis for hypotheses testing. Using the purposive sampling method, there are 31 samples with 124 observations before being deducted by outliers. The results of this study found that the economic dimension of sustainability report does not affect corporate financial performance. This study also found that the environmental dimension of sustainability report has a significant negative effect on corporate financial performance. Meanwhile, the social dimension of sustainability report has a positive significant effect on corporate financial performance. Future studies may consider using other corporate financial performance proxies and also other scoring method to obtain more accurate results.


Keywords


Sustainability report, Corporate financial performance, Firm size, Capital adequacy ratio (CAR)

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References


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