Proceedings of the 5th International Conference on Science, Education and Technology, ISET 2019, 29th June 2019, Semarang, Central Java, Indonesia

Research Article

Analyzing the Determinants of Disclosures of Sustainability Report on LQ45 Companies

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  • @INPROCEEDINGS{10.4108/eai.29-6-2019.2290458,
        author={Muhammad  Khafid and Niswah  Baroroh and Tusyanah  Tusyanah and Vivi Ayuning Tyas},
        title={Analyzing the Determinants of Disclosures of Sustainability Report on LQ45 Companies},
        proceedings={Proceedings of the 5th International Conference on Science, Education and Technology, ISET 2019, 29th June 2019, Semarang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ISET},
        year={2020},
        month={1},
        keywords={corporate governance firm growth firm size leverage profitability sustainability report},
        doi={10.4108/eai.29-6-2019.2290458}
    }
    
  • Muhammad Khafid
    Niswah Baroroh
    Tusyanah Tusyanah
    Vivi Ayuning Tyas
    Year: 2020
    Analyzing the Determinants of Disclosures of Sustainability Report on LQ45 Companies
    ISET
    EAI
    DOI: 10.4108/eai.29-6-2019.2290458
Muhammad Khafid1,*, Niswah Baroroh1, Tusyanah Tusyanah1, Vivi Ayuning Tyas1
  • 1: Universitas Negeri Semarang, Accounting Department, Faculty of Economics
*Contact email: muh_khafid@mail.unnes.ac.id

Abstract

The objective of the study are to analyze the effects of profitability, leverage, and company size and company growth on disclosure of sustainability report and to examine the role of corporate governance as the moderating variable for the effects of profitability and leverage on disclosure of sustainability report. The research populations were companies consistently indexed by LQ45. The samples were taken by purposive sampling and got 51 units of analysis. The data were analyzed by regression. The results showed that profitability, leverage and company growth did not influence the disclosure of sustainability report. Then, company size had a negative effect on disclosure of sustainability report. Next, corporate governance moderated successfully the relationship of profitability and leverage on the disclosure of sustainability report. Thus; it is concluded that company size had a negative effect on sustainability report disclosure and corporate governance had a moderating role for the effect of profitability and leverage on disclosure of sustainability report. The novelty of the study is putting board of commissioners as the moderating variable. It is to analyze the joint effects of independent variables on sustainability report disclosure.