KINERJA PERUSAHAAN NON KEUANGAN DI INDONESIA DITINJAU DARI UKURAN DEWAN DIREKSI DAN PENGUNGKAPAN KEBERLANJUTAN
Keywords:
Size of the Board of Directors, Sustainability Disclosure, Financial Performance, Non-Financial CompaniesAbstract
Financial performance is one measure of a company’s success. This research aims to investigate the influence of Board Size and Sustainability Disclosure on the Financial Performance of companies (a case study on non-financial companies listed on the Indonesia Stock Exchange from 2018 to 2021). The data used in this research is secondary data obtained from annual reports and sustainability reports, with a total sample size of 36 non-financial companies listed on the IDX for the period 2018-2021. The analytical method used in this research is panel data regression analysis using the Random Effect Model. This study provides three main findings. First, the research results indicate that board size and sustainability disclosure simultaneously influence the financial performance of the company. Second, board size does not significantly affect the financial performance of the company. Third, sustainability disclosure significantly affects the financial performance of the company. This research provides benefits for stackholders to make sustainability disclosure one of the reports considered for making investment decisions.
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References
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Edward Freeman, R., & Phillips, R. A. (2002). Stakeholder Theory: A Libertarian Defense. Business Ethics Quarterly, 12(3), 331–349. https://doi.org/10.2307/3858020
Engidaw, A. E. (2021). The effect of external factors on industry performance: the case of Lalibela City micro and small enterprises, Ethiopia. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00147-7
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