Title:
Corporate Governance and the Impact on Sustainability Report Disclosures

Authors:
Jessica Wibisono, Setianingtyas Honggowati, Indonesia

Abstract:

The realisation that financial performance alone is not sufficient to preserve and support a company’s long-term development has made its non-financial performance an extraordinary concern for stakeholders. At long last, companies are starting to rely on the Triple Bottom Line (TBL) concept which focuses on profit, people, and planet (3Ps). According to sustainable business strategies, companies and organisations with promising ESG metrics tend to create superior financial returns, thus increasingly investors are focusing more on ESG metrics when making decisions about their investments. For this reason, a study is conducted to examine the impact of Good Corporate Governance on sustainability report disclosures, through analysing size of the Board of Commissioners (BoC), president of BoC’s education level, size of the Audit Committee (AC), and financial expertise of AC members. This study found that president of BoC’s education level positively impacts sustainability report disclosures, while financial expertise of AC members has a negative effect on sustainability report disclosures. The size of the BoC and size of the AC do not affect sustainability report disclosures.

DOI: https://doi.org/10.51505/IJEBMR.2024.8616