Bestari Dwi Handayani, Aristanti Widyaningsih, Edy Supriyono, Imang Dapit Pamungkas
This study aimed to examine financial performance and corporate governance mechanisms on sustainability reports based on stakeholder theory and legitimacy theory. Profitability, leverage, and liquidity were the financial performance characteristics investigated in this study. Meanwhile, the corporate governance system variable includes the board of directors, independent commissioners, and audit committees. This study additionally tested the effect of financial factors and corporate governance variables on the sustainability report using industry type as a moderating variable. Except for enterprises in the financial sector, the population of this study included companies listed on the Indonesia Stock Exchange (IDX) that published annual reports and Sustainability reports for the years 2017-2021 with 130 total samples. The data in this study were analyzed using Structural Equation Modelling (SEM) Warp-PLS 7.0. The findings revealed that the financial performance variable was not significantly proven as an indicator of the sustainability report, however, the corporate governance variable was. Furthermore, the kind of industry was discovered to be a pure mediator in the effect of financial performance indicators and corporate governance variables on the sustainability report in this study. © 2024, Economic Laboratory for Transition Research. All rights reserved.
Accounting Department, Faculty of Economics, Universitas Negeri Semarang, Indonesia; Accounting Department, Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Indonesia; Accounting Department, Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia; Accounting Department, Faculty of Economics and Business, Universitas Dian Nuswantoro, Indonesia
