PERAN PROFITABILITAS ATAS PENGARUH BOARD GOVERNANCE TERHADAP SUSTAINABILITY REPORT QUALITY

Vinola Herawaty, Nadya Lambintara, Florus Daeli

Abstract


The purpose of this study was to find out the effect of profitability on the relation between Board Governance and Sustainability Report Quality (SRQ) from banking companies listed on Indonesian Stock Exchange. This study used information from Sustainability Report and Annual Report published by each company during period of 2015 to 2019. The sampling method used in this study was purposive sampling, with samples that meet the sample selection criteria came from 11 banking companies, so the total samples in this study were 55 samples. Independent variables used in this study are size of board directors, proportion of independent commissioners, age of board’s members and women on the company’s board, while moderating variable is profitability (ROA). The analysis used in this study are multiple regression analysis and confirmatory factor analysis using the SPSS program to determine the dependent variable, Sustainabilty Report quality. The results showed that board of directors’ size and involvement of women on the company’s board had positive effects on the SRQ. Meanwhile proportion of independent commissioners and ages of board’s members had showed no effect on SRQ. The profitability strengthened the relation between board of directors’ size and the SRQ while it did not moderate the relation between other variables and SRQ. Originality of this study is that the authors add to the literature by answering the question of whether Board Governance is an effective way to increase SRQ and whether profitability strengthens the influence of board governance to SRQ in Indonesian Banking industry.


Keywords


Board Governance; Profitability; Sustainability Report Quality.

Full Text:

PDF

Article Metrics

Abstract views : 0| PDF views : 0

References


Al-Shaer, H., & Zaman, M. (2016). Board Gender Diversity and Sustainability Reporting Quality. Journal of Contemporary Accounting & Economics, 12(3), 210–222. doi:10.1016/j.jcae.2016.09.001.

Angelidis, J., Ibrahim, N., Tomic, I., & Parsa, F. (2011). Gender Effects on E-Commerce. Retrieved March, 6(2012), 219.

Branco, M. C., Delgado, C., Gomes, S. F., dan Eugenio, T. C. P. (2014). Factors Influencing the Assurance of Sustainability Reports in the Context of the Economic Crisis in Portugal. Managerial Auditing Journal, Vol. 29, No. 3, Hal. 237-252.

Chariri, Anis dan Imam, Ghozali. (2007). Teori Akuntansi. Semarang: Universitas Diponegoro.

Dani, Andreia C., Picolo, J. D., Klann, R. C. (2019). Gender Influence, Social Responsibility and Governance in Performance. RAUSP Management Journal, Vol. 54, No. 2, Hal. 154-177. ISSN: 2531-0488.

Dissanayake, D., Tilt, C., dan Qian, W. (2019). Factors Influencing Sustainability Reporting by Sri Lankan Companies. Pacific Accounting Review, Vol. 31, No. 1, Hal. 84-109. ISSN: 0114-0582.

Global Reporting Initiative (GRI) (2013). Pedoman GRI-G4. Amsterdam: GRI.

Global Sustainability Standards Board (GSSB) (2016). GRI Sustainability Reporting Standards. Amsterdam: GRI.

Gujarati, D.N., Porter, D. C. (2009). Basic econometrics. New York: McGraw-Hill Irwin.

Jensen, M., & Mecklin, W. (1976). Theory of the Firm: Manager Behaviour, Agency Costs and Analogous Situations. Journal of Financial Economics, 3, 323-329.

Kılıç, M., Kuzey, C., dan Uyar, A. (2015). The Impact of Ownership and Board Structure on Corporate Social Responsibility (CSR) Reporting in the Turkish Banking Industry. Corporate Governance, Vol. 15, No. 3, Hal. 357-374. ISSN: 1472-0701.

Komite Nasional Kebijakan Governance (2006). Pedoman Umum Good Corporate Governance Indonesia. Jakarta: KNKG.

Mudiyanselage, Nayana C. S. (2018). Board Involvement in Corporate Sustainability Reporting: Evidence from Sri Lanka. Corporate Governance, Vol. 18, No. 6, Hal. 1042-1056. ISSN: 1472-0701.

Ngu, S.B. dan Amran, A. (2019). The Impact of Sustainable Board Capital on Sustainability Reporting. Strategic Direction, Vol. 35, No. 12, Hal. 8-11. ISSN: 0258-0543.

Nielsen, Anne E. dan Thomsen, C. (2018). Reviewing Corporate Social Responsibility Communication: A Legitimacy Perspective. Corporate Communications: An International Journal, Vol. 23, No. 4, Hal. 492-511. ISSN: 1356-3289.

OECD (2015). G20/OECD Principles of Corporate Governance. Paris: OECD Publishing. http://dx.doi.org/10.1787/9789264236882-en

Orazalin N., dan Mahmood M. (2019). Determinants of GRI-Based Sustainability Reporting: Evidence from An Emerging Economy. Journal of Accounting in Emerging Economies, Vol. 10, No. 1, Hal. 140-164. ISSN: 2042-1168.

Peraturan Otoritas Jasa Keuangan Republik Indonesia Nomor 51/POJK.03/2017 Tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik.

Pope, S. dan Lim, Alwyn (2019). The Governance Divide in Global Corporate Responsibility: The Global Structuration of Reporting and Certification Frameworks, 1998-2017. Organization Studies, SAGE Journals. Online ISSN: 1741-3044.

Qa’dan, M. B., dan Suwaidan, M. S. (2019). Board Composition, Ownership Structure and Corporate Social Responsibility Disclosure: The Case of Jordan. Social Responsibility Journal, Vol. 15, No. 1, Hal. 28-46. ISSN: 1747-1117.

Rao, K. K., & Tilt, C. A. (2013). Corporate governance and corporate social responsibility: A critical review. In Proceedings of the 7th Asia Pacific Interdisciplinary Research in Accounting Conference.

Rudyanto, Astrid dan Siregar, Sylvia V. (2018). The Effect of Stakeholder Pressure and Corporate Governance on the Sustainability Report Quality. International Journal of Ethics and Systems, Vol. 34, No. 2, Hal. 233-249. ISSN: 2514-9369.

Romero, S., Ruiz, S., & Fernandez-Feijoo, B. (2018). Sustainability reporting and stakeholder engagement in Spain: Different instruments, different quality. Business Strategy and the Environment. doi:10.1002/bse.2251

Situs resmi IDX (2019). Press Release Detail: The Key Role of Indonesian Business in Achieving the Sustainable Development Goals in Indonesia Capital Market. https://idx.co.id/en-us/news/press-release-detail/?emitenCode=1077 diakses Januari 2020.

Situs resmi GRI (July, 2020). Sustainability Disclosure Database (SDD). https://database.globalreporting.org/search/ diakses Juli 2020.

Suchman, M. (1995). Managing Legitimacy: Strategic and Institutional Approaches, Academy of Management Review, Vol.20, No. 3, pp. 57l-610


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

 Creative Commons License

Media Riset Akuntansi, Auditing & Informasi Creative Commons Attribution-NonCommercial 4.0 International License.