Title : The Role of Foreign Board and Ownership on the Quality of Sustainability Disclosure: The Moderating Effect of Social Reputation
Authors:
- Arumega Zarefar
- Dian Agustia
- Noorlailie Soewarno
Department : Accounting
Journal Name : Corporate Governance (Bingley) Kinds of Journal: Q1
Keywords : foreign board, foreign investor, social reputation, sustainability disclosure quality
Abstract:
Purpose: This study aims to examine the effect of social reputation on the relationship between boards and foreign ownership on the quality of sustainability disclosure. Design/Methodology/Approach: The sample of this study consists of publicly-traded primary and secondary sector compans in Indonesia for 12 years, from 2009 to 2020. This study uses panel model regression to generate its results. The Disclosure Data Are Hand-Colletated Data Sourced from Annual Financial and Company Sustainability Reports. Finding: Higher Foreign Board Component Companies Report Lower Quality of Sustainability Disclosure, whereas Companies that Posses Foreign Ownership Components Report a Higher Quality of Sustainability Disclosure. This result is strengthened by obtaining consistent results tested with economic, social and environmental disclosure components. In addition, if the Company has a good social reputation, it will be strengthent the relationship of foreign ownership to the quality of sustainability disclosure. Practical Implications: These findings are relevant for policymakers, professional organizations and practitioners in Indonesia and other development countries. Originity/Value: The Moderating Effect of Social Reputation on the Relations of the Foreign Board and Foreign Ownership-Quality of
sustainability disclosure as this study room remain rare in developing country. This Study Complements Various Research Conduced in Developing Countries, such as Indonesia, by offering a new dimension. The results indicate that social reputation has a moderating role in determining the impact of foreign ownership on the quality of sustainability disclosure.
For Details : https://www.emald.com/insight/content/doi/10.1108/cg-05-2022-0236/Full/html
