The Influence of Sustainability Reports on Financial Performance in Banking Companies Listed on the Indonesia Stock Exchange (IDX) for the 2016-2023 Period

Zulkarnaini; Ni Utami; Antaiwan Pranogyo; Ni Andini

doi:10.53697/emak.v6i1.2244

Authors

Zulkarnaini Sekolah Tinggi Ilmu Ekonomi Indonesia
Ni Kadek Cahya Dwi Utami Politeknik Negeri Bali
Antaiwan Bowo Pranogyo Sekolah Tinggi Ilmu Ekonomi Indonesia
Ni Wayan Lady Andini Politeknik Negeri Bali

DOI:

https://doi.org/10.53697/emak.v6i1.2244

Keywords:

Sustainability Report, Disclosure of Social Dimension, Disclosure of Environmental Dimension, Disclosure of Economic Dimension, ROA, Bangking

Abstract

This study aims to determine the impact of sustainability reports, which are described in three dimensions of disclosure: Social, Environmental, and Economic, on financial performance by using profitability ratios proxied by the ROA ratio and adding company size as a control variable. The population in this study consists of banking companies listed on the Indonesia Stock Exchange that disclosed Sustainability Reports using the GRI G4 standard during the period 2017-2023. The results obtained are that the dimensions of social and environmental disclosure have a negative insignificant effect on financial performance, while the dimension of economic disclosure has a significantly positive effect on financial performance. The addition of company size as a control variable does not affect the obtained results. The results of this study can be used by investors in making investment decisions, especially by considering the sustainability report variable.

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