Is GCG Strengthening the Influence Between Sustainability Reporting to Financial Performance? (A study in IDX companies)
- DOI
- 10.2991/aebmr.k.200915.029How to use a DOI?
- Keywords
- sustainability reporting, GCG index, firm performance, bank, non-bank
- Abstract
This study investigates the sustainability reporting differences between banks and nonbanks sample firms and examines the effect of Good Corporate Governance (GCG) in strengthening the influence between Sustainability Reporting (SR) to firm financial performance. The GCG proxied by the Corporate Governance Perception Index (CGPI). The independent-sample t-test implemented to analyze the differences. The results report evidence that there are differences in sustainability reporting between the bank and nonbank, in economic and social dimensions, and also in CGPI. The average score of the sustainability reporting index in banks is better than nonbank, while the average rating of CGPI nonbank is higher than bank sample firms. The multiple regressions implemented in investigating the effect of GCG in strengthening the influence between SR to financial performance. The empirical evidence shows that GCG enhances the relationship between Sustainability Reporting (SR) to firm performance in the economic dimension only. The result suggests that the better the GCG, the stronger the relationship.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Tri Gunarsih AU - Ralina Transistari AU - Ari Rudatin PY - 2020 DA - 2020/09/15 TI - Is GCG Strengthening the Influence Between Sustainability Reporting to Financial Performance? (A study in IDX companies) BT - Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020) PB - Atlantis Press SP - 124 EP - 129 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200915.029 DO - 10.2991/aebmr.k.200915.029 ID - Gunarsih2020 ER -