The Influence of the Implementation of Good Corporate Governance on the Level of Disclosure of Sustainability Reporting with Financial Performance as an Intervening Variable

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 9

Year of Publication : 2021

Authors : Gusagis Khomanur Ngaziz, Hadri Mulya

10.14445/23939125/IJEMS-V8I9P103

How to Cite?

Gusagis Khomanur Ngaziz, Hadri Mulya, "The Influence of the Implementation of Good Corporate Governance on the Level of Disclosure of Sustainability Reporting with Financial Performance as an Intervening Variable," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 9, pp. 22-28, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I9P103

Abstract:

The thesis entitled "The Influence of the Implementation of Good Corporate Governance on the Level of Disclosure of Sustainability Reporting with Financial Performance as an Intervening Variable" seeks to answer the research problem, Does the implementation of Good Corporate Governance have a significant effect on the level of disclosure of sustainability reporting? Does the implementation of Good Corporate Governance have a significant effect on financial performance? Does financial performance have a significant effect on the level of disclosure of sustainability reporting? And is financial performance an intervening between Good Corporate Governance and the level of disclosure of sustainability reporting? By using quantitative descriptive analysis, in testing the hypothesis using the regression analysis method with some classical assumptions and statistical t test, the following conclusions are obtained, namely: Institutional Ownership and Independent Board of Commissioners have a significant effect on the level of disclosure of sustainability reporting, while the Audit Committee and Board of Directors have no effect.
Significant to the level of disclosure of sustainability reporting. Independent Board of Commissioners has a significant effect on ROA and Institutional Ownership has a significant effect on ROE; Meanwhile, the Audit Committee, institutional ownership and the Board of Directors have no significant effect on ROA; Likewise, the Audit Committee, independent Commissioners and the Board of Directors do not have a significant effect on ROE.
Return on Assets has a significant effect on the level of disclosure of sustainability reporting, but Return on Equity has no significant effect on the level of disclosure of sustainability reporting. And, institutional ownership and the Board of Directors have a significant effect on the level of disclosure of sustainability reporting with ROA as an intervening; however, the audit committee and the independent board of commissioners have no significant effect on the level of disclosure of sustainability reporting with ROA as an intervening.
While Institutional Ownership and Board of Directors have a significant effect on the level of disclosure of sustainability reporting with ROE as an intervening, however, the Audit Committee and Independent Board of Commissioners have no significant effect on the level of disclosure of sustainability reporting with ROE as the intervening.

Keywords:

Sustainability Disclosure; Audit Committee; Institutional Ownership; Independent Board of Commissioners; Board of Directors; Return on Assets; and Return on Equity.

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