Disclosure of Sustainability Report Mediating Good Corporate Governance Mechanism on Stock Performance

Abstract

The aim of this study is to examine the effect of good corporate governance mechanism to stock performance through sustainability report disclosure as mediation. Good corporate governance mechanism used in this case is commissioner board's size, the proportion of independent commissioners, audit committee's size, and managerial ownership, whereas stock performance measured in this case is stock return. Using a sample 113 companies all sector listed in Indonesia Stock Exchange which publish sustainability report during 2014-2016. This study were using simple and multiple linear regression analysed to determine indirect effect through path diagram. Based on the result of the first hypothesis testing of GCG mechanism none of which have significant effect on SR disclosure, the second hypothesis is only the proportion of independent commissioner and audit committee's size of GCG mechanism which have positive significant effect on stock performance, the third hypothesis of SR disclosure has no significant effect on stock performance and the fourth hypothesis explains that SR disclosure is not exactly a mediating variable.

Sustainability Reporting dan Return Saham di Perusahaan Terindeks LQ45

“…Investor tertarik akan informasi sosial yang dilaporkan perusahaan dalam laporan tahunan dan menganggap informasi ekonomi saja tak cukup sebagai pertimbangan berinvestasi (Epstein & Freedman, 1994). Sehingga investor akan tertarik untuk berinvestasi di perusahaan yang telah mampu menerbitkan sustainability reporting karena asimetri informasi semakin kecil (Nawawi et al, 2020).…”

“…Santi (2014) juga menemukan bahwa sustainability reporting berpengaruh positif pada return saham. Berbeda dengan penelitian Prayosho & Hananto (2013), Wijaya & Sudana (2017), Aji & Juliarto (2018, dan Nawawi et al, (2020) yang menyatakan sustainability reporting tidak berpengaruh pada return saham. Kemungkinan besar hal ini terjadi karena investor di pasar modal indonesia belum memahami pentingnya mengelola perusahaan secara berkelanjutan.…”

“…Temuan dalam penelitian ini yakni intensitas pengungkapan dalam sustainability reporting tidak berpengaruh pada return saham. Hasil dari penelitian ini bertentangan dengan hasil penelitian yang dilakukan oleh Reddy & Gordon (2010), Santi (2014), Ansari et al (2015, dan Glamedita (2017) Nawawi et al, (2020) menjelaskan pengungkapan SR tidak berpengaruh pada kinerja saham, karena investor masih tidak mempertimbangkan pelaporan keberlanjutan serta harga saham spekulatif berpengaruh terhadap penilaian calon investor. Stekelenburg et al, (2015) menjelaskan pengungkapan SR tidak berpengaruh terhadap kinerja saham karena perusahaan yang menerbitkan SR masih belum menyampaikan informasi secara maksimal atau masih kurang terbuka.…”

Islamic index, independent commissioner and firm performance

“…The presence of an independent commissioner in Indonesia is facultative, meaning that a limited liability firm can have an independent commissioner and not as a complement (Lumentut, 2019). Some of the previous research shows that an independent commissioner affects stock performance (Nawawi et al, 2020). Abidin et al 2009 proved that the higher the percentage of independent boards will improve performance because the independent boards have diverse backgrounds, characteristics, attributes and expertise that can improve the quality of decision making.…”

Sustainability Report: The Role towards Stock Return of Banking Sector

“…Investors are interested in social information reported by companies in annual reports and believe that economic information alone is insufficient as a consideration for investment [2]. As a result of the reduced information asymmetry, investors will be interested in investing in companies that have been able to issue a Sustainability Report [3].…”