We investigate the sustainability reporting differences in banks and non-banks sample firms and investigates reserve causality between sustainability reporting and profitability. The independent-sample t-test implemented to analyze the differences. The results report evidence that there are differences in sustainability reporting between the banks and non-bank. The average score of the sustainability reporting index in banks is higher than non-bank. The multiple regressions implemented in reserve causality between sustainability reporting and profitability. The empirical evidence shows that there is a negative relationship between sustainability reporting and profitability. We suggest that sustainability is merely a cost. The bi-directional relationship emerges in the economic and social dimension of sustainability reporting index. This result indicates that sustainability reporting influences firm performance and vice versa. AbstrakKami menyelidiki perbedaan pelaporan keberlanjutan di bank dan perusahaan sampel nonbank dan menyelidiki reserve causality antara pelaporan keberlanjutan dan profitabilitas. Uji-sampel independen dilaksanakan untuk menganalisis perbedaan. Hasilnya membuktikan bahwa ada perbedaan dalam pelaporan keberlanjutan antara bank dan non-bank. Skor rata-rata indeks pelaporan keberlanjutan di bank lebih tinggi daripada non-bank. Berbagai regresi diimplementasikan dalam reserve causality antara pelaporan keberlanjutan dan profitabilitas. Bukti empiris menunjukkan bahwa ada hubungan negatif antara pelaporan keberlanjutan dan profitabilitas. Kami menyarankan bahwa keberlanjutan hanyalah biaya. Hubungan dua arah muncul dalam dimensi ekonomi dan sosial dari indeks pelaporan keberlanjutan. Hasil ini menunjukkan bahwa pelaporan keberlanjutan memengaruhi kinerja perusahaan dan sebaliknya.
Ownership structure, among other things, is one mechanism in corporate governance. In this context, ownership has a monitoring function. Another corporate governance mechanism is the market for corporate control. If managers did not act in the best interest of shareholder, then firm performance will decrease. The decreasing of firm performance will be followed by the changing in ownership. This will raise an interesting question, whether ownership caused by firm performance or vice versa. The objectives of this study to test whether monitoring function or market for corporate control that was implement as a corporate governance mechanism in Indonesia using causality model. A panel Granger-causality test base on Ganger (1969) applied to test the causality. Samples in this study were manufacture listed companies in Indonesia Stock Exchange during 2012-2016. Ownership concentration was proxy by the Herfindahl Index of Domestic Institution ownership. The firm performance indicators in this study were efficiency, measured by Operating cost to Sales ratio, and Sales to Asset ratio and Tobin's Q. The results of the study showed that there was a bi-causality relationship between ownership concentration and both firm performance indicators. These suggested that the monitoring function and the market for corporate control were implemented as a corporate governance mechanism in Indonesia.
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