Pancawati, Hardiningsih and Cahyani, Nuswandari and Ceacilia, Sri Mindarti and gregorius, Anggana L A literacy of the relevance of Asian value sustainability reporting in Indonesia. Investment Management and Financial Innovations, Volume 21, Issue 1, 2024.
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Abstract
An independent institution gives appreciation to companies in Indonesia that have published their sustainability reports by ranking their sustainability reports in the Asia Sustainability Reporting Rating. This institution plays a role in facilitating and encouraging companies, organizations and other entities in Indonesia to adopt good sustainability reporting practices. This ranking factor is predicted to influence the movement of abnormal returns so that it can influence value relevance through the earnings response coefficient. The aim of this study is to reveal the relevance of value in order to obtain empirical evidence regarding the influence of sustainability reports, sustainable report ratings and earnings persistence on the earnings response coefficient. The research sample was 130 companies in Indonesia that were included in the Asia Sustainability Reporting Ranking for the period 2019 to 2022. This paper uses a quantitative multiple linear regression method to test the hypothesis. The research results show that consistent profits can be predicted from the past and make a positive contribution to future earnings response. A company transparently discloses its performance in the sustainability aspect, thereby making the profit response more positive. Companies with high sustainability ratings tend to get a more positive profit response from the market and stakeholders. This study suggests that management and company owners in Indonesia are aware of the need to pay attention to long-term sustainability through the publication of sustainability reports to become a company’s commitment to implementing sustainability and minimizing risks arising from the company’s economic, social and environmental activities.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Faculty / Institution: | Fakultas Ekonomika dan Bisnis |
| Depositing User: | Fakultas Ekonomi |
| Date Deposited: | 30 Jan 2024 05:28 |
| Last Modified: | 30 Jan 2024 05:28 |
| URI: | https://eprints.unisbank.ac.id/id/eprint/9878 |
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