Sustainability Disclosure And Firm Performance: The Role Of CEO Power As Moderation

The issue of sustainability has become a critical and very important issue to be discussed because of the increase in environmental damage, unethical corporate behaviour, exploitation of child labour and other economic, social and environmental challenges. This study aims to examine the effect of sustainability disclosure on firm performance, as well as to examine the effect of CEO Power as a moderator between the relationship between sustainability disclosure and company performance. This study uses panel data analysis with Generalised Least Square (GLS) technique with a sample of primary and secondary sector companies listed on the Indonesia Stock Exchange (IDX) in the observation period 2014-2020. The results show that sustainability disclosure has a significant effect on company performance, both accounting-based and market-based performance. However, the presence of CEOs with work experience as CEOs in previous companies cannot have a significant effect on the relationship between sustainability disclosure and firm performance. These results have implications for strengthening the focus of companies to start presenting more comprehensive non-financial information such as sustainability reports that have an impact on improving company performance, especially market performance.