The Effect of Corporate Sustainability Report Disclosure on Company Value Mediated by Financial Performance

Title: The Effect of Corporate Sustainability Report Disclosure on Company Value Mediated by Financial Performance

Author: Wiwik Iswati

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

The aim of this research is to obtain empirical evidence about the effect of corporate sustainability reporting on company value mediated by financial performance for 59 manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2017-2018. This research is quantitative research by testing hypotheses because it uses statistical methods to solve the problem. Data were analyzed using a multiple linear regression model to test the impact of disclosure of corporate sustainability reporting on company value with financial performance as mediation. The results of this study indicate that disclosure of sustainability reporting does not affect financial performance. Disclosure of sustainability reporting does not affect company value. Company performance influences company value. Company performance does not mediate the relationship between sustainability reporting disclosure and company value. This research uses stakeholder theory as a basis for explaining how to minimize the gap between managers who run the company and stakeholders who have high expectations of corporate performance and legitimacy theory which can be used as a vehicle to build company strategy, especially those related to efforts to position itself in an increasingly advanced society.

Keywords: sustainability reporting, financial performance, company value

Sources: http://repository.unair.ac.id/96838/