THE EFFECT OF COMPANY ACTIVITIES AND AUDIT COMMITTEE ON DISCLOSURE OF SUSTAINABILITY REPORTS
Abstract
The aim of this study is to determine the effect of company activities and audit committee on the sustainability report disclosure. This study use empirical studies on companies which are included in the LQ45 Index (Index for 45 listed companies which are selected based on considerations of liquidity and market capitalization, with predetermined criteria from Indonesia Stock Exchange). The independent variables in this research are company activities and audit committee. The dependent variable is sustainability report disclosure. Disclosure of sustainability reports is measured by Sustainability Report Disclosure Index (SRDI) according to the criteria from GRI (Global Reporting Initiative), namely economic, environmental, and social (labor practices and decent work, human rights, society and product responsibility). This research use descriptive quantitative method. This study use secondary data from annual report of companies listed on the Indonesia Stock Exchange from 2015 to 2018. The sampling technique used is purposive sampling. Statistical data analysis methods used are descriptive statistics, classic assumption test and hypothesis test including the coefficient of determination test, multiple regression analysis, simultaneously test, and partial test. From descriptive statistics result show the average value of sustainability report disclosure is 0,28 with a standard deviation of 0,20. The results of this study indicate that company activities and audit committee simultaneously influence sustainability report disclosure. The results also show company activities influence sustainability report disclosure partially, and audit committee influence sustainability report disclosure partially too.
Keywords: Company Activities, Audit Committee, Sustainability Report, Disclosure, Total Asset
References
Aniktia. Ria dan Khafid Muhammad. (2015). Pengaruh Mekanisme Good Corporate Governance dan Kinerja Keuangan terhadap Pengungkapan Sustainability Report. AAJ, 4(3).
Awalia. Eria Nissa. Ratna Anggraini. dan Rida Prihatni. (2015). Pengaruh Dewan Komisaris Independen, Leverage dan Aktivitas Perusahaan Terhadap Pengungkapan Sustainability Report. J Ilm Wahana Akunt, 10(2).
Bradbury et al. (2004). Board Characteristics, Audit Committee Characteristics, and Abnormal Accruals. Working Paper: United New Zealand Dan National University of Singapore.
Budi Rustandi Kartawinata, et.al., (2020). Manajemen Keuangan (Sebuah Tinjauan Teori dan Praktis). In Penerbit Widina (1st ed.).
DeColle, F. H. W. P. and. (2010). Stakeholder Theory: The State of the Art. Cambridge University Press.
Fifka M. (2012). The development and state of research on social and environmental reporting in global comparison. J Betriebswirtsch [Internet], 62, 45–84.
Freeman R. Edward Jeffrey S. Harrison and Stelios C. Zyglidopoulos. (2018). Stakeholder Theory: Concepts and Strategies. Cambridge University Press.
Ghozali. Imam. (2016). plikasi Analisis Multivariete Dengan Program IBM SPSS 23 Cetakan ke VIII (8th ed.). Badan Penerbit Universitas Diponegoro. 93.
Global Reporting Initiative (GRI). (2011). Sustainability Reporting Guidelines 2011.
GRI (Global Reporting Initiative). (2016). Consolidated Set of GRI Sustainability Reporting Standards 2016.
Herzig, C., Schaltegger, S. (2006). Corporate sustainability reporting: An overview, in: Schaltegger, S., Bennett, M., Burritt, R.L. Sustain Account Reporting Springer, Dordr, 301–324.
IGKA, U. (2009). Analisis Pengaruh Likuiditas, Leverage, Aktivitas, dan Profitabilitas Terhadap Return Saham Studi Pada Perusahaan Makanandan Minuman Dengan Katagori Industri Barang Konsumsi di BEJ. Jurnal, Denpasar Univ Udayana.
Kathyayini Rao. Carol Tilt. (2016). Board Composition and Corporate Social Responsibility: The Role of Diversity, Gender, Strategy and Decision Making, Springer Science Business Media Dordrecht 2015. J Bus Ethics.
Kolk. A. (2010). Trajectories of sustainability reporting by MNCs. J World Bus 45, 367–374.
Kolk A. Lenfant F. (2010). MNC reporting on CSR and conflict in central Africa. J Bus Ethics, 93, 241–255.
KPMG. (2011). KPMG international survey of corporate responsibility reporting.
Lozano R. (2013). Sustainability inter-linkages in reporting vindicated: a study of European companies. J Clean Prod.
Lozano R. Huisingh D. (2011). Inter-linking issues and dimensions in sustainability reporting. J Clean Prod, 19, 99–107.
Mardikanto. Totok. (2014). CSR (Corporate Social Responsibility) (Tanggung jawab Sosial Korporasi). Alfabeta.
Munawir S. (2007). Analisa Laporan Keuangan (Keempat). Liberty.
Prastiwi. Suryono. Hari dan Andri. (2011). Pengaruh Karakteristik Perusahaan dan Corporate Governance (CG) Terhadap Praktik Pengungkapan Sustainability Report (SR)â€, dalam Simposium Nasional Akuntansi XIV Aceh, 2011. In Aceh: Universitas Syiah Kuala Banda Aceh.
Van Horne. James C. dan Wachowicz JR. John M. (2012). Fundamental of Financial Management: Prinsip-prinsip Manajemen Keuangan. Salemba Empat.
Vormedal. I. Ruud A. (2009). Sustainability reporting in Norway: An assessment of performance in the context of legal demands and socio-political drivers. Bus Strat Env, 18, 207–222.
Widianto H. S. (2011). Pengaruh Profitabilitas, Likuiditas, Leverage, Aktivitas, Ukuran Perusahaan, dan Corporate Governance terhadap Praktik Pengungkapan Sustainability Report (Studi Pada PerusahaanPerusahaan yang Listed (Go-Public) di Bursa Efek Indonesia (BEI) Periode 2007-2. Fak Ekon Dan Bisnis Univ Diponegoro, 97.