Sustainability Reporting Quality And Corporate Governance

Abstract

This study examines the effect of the company's vision and mission, government ownership, type of industry, media exposure, and financial performance on the sustainability report (SR) quality on LQ-45 companies in Indonesia in 2018-2021. In addition, this paper uses implementation of good corporate governance (GCG) as an moderating variable. The unit of analysis of this research is 107 companies. The data analysis of this research uses partial least square (PLS) which is a variance-based structural equation modeling (SEM) approach. The results of this study indicate that the company's vision and/or mission has a significant positive effect on the quality of the sustainability report. Government ownership has a significant negative effect on the quality of the sustainability report. The media exposure and financial performance has no significant effect on the quality of the sustainability report. In addition, the implementation of GCG principles strengthens the relationship of government ownership to the quality of the sustainability report but does not moderate the relationship between other variables. Hence, companies have to make improvement in impelentation of good corporate governance pronciples in all division. Moreover, the vision and mission of the company must always be reviewed periodically.