IMPACT OF PROFITABILITY, TYPE OF INDUSTRY, AND COMPANY SIZE ON THE SUSTAINABILITY REPORT (COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR 2018-2021 PERIOD)

Abstract

Thel purpose ofl this studyl is tol determine thel disclosure of sustainability reports for Indonesian non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2021. This research alsol aims tol examine thel factors thatl influence the decision to issue a sustainabilityl report.

The independent variables used in this study are profitability, type of industry and company size. The dependent variable used is the disclosure of the sustainability report. The population used are companies listed on the Indonesia Stock Exchange (IDX) with the exception of the financial sector which has been required by the OJK to make a sustainability report. The samples used for each type of industry were around 25 companies with a total sample of 823 companies from 10 different types of industries. This study uses logistic regression analysis with a dummy of 0 for companies that do not publish sustainability reports and 1 for companies that publish sustainability reports.

Thel results ofl this studyl indicate thatl profitability has nol significant effectl on thel disclosure of sustainability reports. The typel of industryl has a significantl and positive effect onl the disclosurel of sustainabilityl reports. Meanwhile, company size hasl a significant and negative effectl on thel disclosure ofl sustainability reports.