The determinant factors of sustainability report quality and corporate performance : an empirical study

Abstract

Purpose: This study aims to obtain evidence and conclude that the quality of the sustainability report depends on stakeholder pressure, financial performance, and good governance so that the company's reputation and public trust will be better. The purpose of this research is to examine the determinant factors of sustainability report, including environmental, employee shareholder pressures and board of commissioners. Design/Methodology/Approach: Analysis of the data in this study using multiple regression models, supported by secondary data and purposive sampling with the criteria of companies that publish sustainability reports in Indonesia. Findings: This research indicates that environmental and shareholder pressures affect the quality of the sustainability report. Pressure from employees and the board of commissioners does not affect the sustainability report. Furthur, ROA is proven not to moderate the influence of environmental pressures, shareholders, employees, and commissioners on the sustainability report's quality. Practical Implication: The results of this research would enhance the quality of sustainability report in Indonesia by prioritizing the role of good governance and stakeholders interested. Originality/Value: The authenticity of this study is to provide empirical proof to the previous literature that environmental pressure, employee pressure, stakeholders pressure and, boards of commissioners are affiliated with the sustainability report quality.