THE EFFECT OF SUSTAINABILITY REPORT DISCLOSURE ON MARKET AND ENVIRONMENTAL PERFORMANCE

Abstract

This study purpose to provide empirical evidence about the effect of sustainability report disclosure on market and environmental performance. The object of research is companies that publish sustainability reports on Indonesia Stock Exchange in Period 2014-2018. The sampling techniques used are purposive sampling method. The dependent variable is market performance as measured by Tobin’s Q and moderating variable is environmental performance as measured by PROPER (Corporate Performance Rating Assessment) initiated by the Ministry of Environment and Forestry of The Republic Indonesia. While the independent variable is Sustainability Report Disclosure as measured by SRDI. The data analysis of this study is using Moderated Regression Analysis (MRA). The results of this study indicate the findings that the sustainability report disclosure has a significant effect on market performance and the second finding shows that environmental performance as moderation weakens the effect of sustainability report disclosure on market performance. The reason why is because there are still not many company that publish sustainability reports in Indonesia, due to the inconsistency of the company in issuing sustainability reports every year, the government needs to issue regulations so that more companies publish sustainability reports consistently.

Keywords

• sustainability report
• environmental
• proper
• market
• performance