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
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