CORPORATE SUSTAINABILITY PERFORMANCE AND FINANCIAL PERFORMANCE: MODERATING EFFECT OF BOARD COMPOSITION
Article Sidebar
Main Article Content
Abstract
This study analyzes the moderating effect of the composition of female directors and the composition of independent directors on CSP and ROA. The purpose of this study is to analyze the effect of the disclosure of Corporate Sustainability Performance (CSP) on the Return on Assets (ROA) as a proxy for the company's financial performance. The population of this study is companies listed on the SRI-KEHATI index during the period November 2016– October 2019. The research hypotheses were tested using linear regression analysis and moderated regression analysis. The study results found that CSP has a significant effect on the company's ROA. The better and more complete the CSP disclosure, the higher the ROA. Furthermore, the composition of female and independent directors does not significantly affect CSP on corporate financial performance. This study implies that female directors and the composition of the independent board are more for compliance with regulatory requirements.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Penulis yang naskahnya diterbitkan menyetujui ketentuan sebagai berikut: Hak publikasi atas semua materi naskah jurnal yang diterbitkan/dipublikasikan dalam situs Jurnal AKURASI ini dipegang oleh dewan redaksi dengan sepengetahuan penulis (hak moral tetap milik penulis naskah). Ketentuan legal formal untuk akses artikel digital jurnal elektronik ini tunduk pada ketentuan lisensi Creative Commons Attribution-ShareAlike (CC BY-SA), yang berarti Jurnal AKURASI berhak menyimpan, mengalih media/format-kan, mengelola dalam bentuk pangkalan data (database), merawat, dan mempublikasikan artikel tanpa meminta izin dari Penulis selama tetap mencantumkan nama Penulis sebagai pemilik Hak Cipta. Naskah yang diterbitkan/dipublikasikan secara cetak dan elektronik bersifat open access untuk tujuan pendidikan, penelitian, dan perpustakaan. Selain tujuan tersebut, dewan redaksi tidak bertanggung jawab atas pelanggaran terhadap hukum hak cipta.
References
Alves, S. 2014. The Effect of Board Independence on the Earnings Quality: Evidence from Portuguese Listed Company, Australian Accounting, Business, and Finance Journal, 8(3), 24-36
Davies, E. M. 2012. Women on Boards. Working Paper, UK Government Equalities Office.
Elkington, J. 1997. Cannibals With Forks: The Triple Bottom Line of 21st Century Business. The UK. Capstone Publisher
Garg, P. 2015. Impact of Sustainability Reporting on Firm Performance of Companies in India, International Journal of Marketing and Business Communication, 4(3), 41-44
Heemskerk, B., Pistorio, P., and Scicluna, M. 2002. Sustainable Development Reporting: Striking the Balance: Vol. 1. Setting the Scene – Drives, Trends, and Dilemmas. The UK. World Business Council for Sustainable Development. Hertfordshire.
Hermuningsih, S. 2013. Pengaruh Profitabilitas, Growth Opportunity, Struktur Modal Terhadap Nilai Perusahaan Pada Perusahaan Publik di Indonesia, Buletion Ekonomi Moneter dan Perbankan, 133-135
Kantabutra, S., amd Ketprapakom, N. 2020. Toward a Theory of Corporate Sustainability: A Theoretical Integration and Exploration, Journal of Cleaner Production, 270, 3-19
Laoli, N. 2018. OJK Restui Penghapusan Kewajiban Punya Jabatan Direktur Independen. Accessed on July 24, 2021. https://investasi.kontan.co.id/news/ojk-restui-penghapusan-kewajiban-punya-jabatan-direktur-independen
Lee, K.M. 2007. So What is the ‘Triple Bottom Line’?, International Journal of Diversity In Organisations, Communities, and Nations: Annual Review 6 (6), 67-72. doi:10.18848/1447-9532/CGP/v06i06/39283
Montiel, I. 2008. Corporate Social Responsibility and Corporate Sustainability, The University of Texas, 21(3), 245-269
Motwani, S.S., & Pandya, H.B. 2016. Evaluating the Impact of Sustainability Reporting on Financial Performance of Selected Indian Companies, International Journal of Research in IT & Management, 6(2), 16-22
Parmar, Freeman, et al. 2010. Stakeholder Theory: The State Of The Art, The Academy of Management Annals, 3-6
Pasaribu, P. 2017. Female Directors and Firm Performance: Evidence from UK Listed Firms, Gadjah Mada International Journal of Business, 19(2), 145-166
Rashid, A. 2017. Board Independence and Firm Performance: Evidence From Bangladesh, Future Business Journal, 4, 34-49
Sabki, M. 2021. 60 Persen BUMN Tak Miliki Jajaran Direksi Perempuan. CNN Indonesia. Accessed on July 24, 2021. https://www.cnnindonesia.com/ekonomi/20210309164340-92-615608/60-persen-bumn-tak-miliki-jajaran-direksi-perempuan
Septian, D. 2020. Rendahnya pemahaman jadi penyebab sulitnya perusahaan wujudkan SDGs. Accessed on July 24, 2021. https://www.liputan6.com/bisnis/read/4415361/rendahnya-pemahaman-jadi-penyebab-sulitnya-perusahaan-wujudkan-sdgs
Setiawan, S.R.D. 2017. RI Peringkat 4 Negara dengan Direktur Perempuan Terbanyak. Accessed on July 24, 2021. https://money.kompas.com/read/2020/03/17/163515926/ri-peringkat-4-negara-dengan-direktur-perempuan-terbanyak
Shalihin, M.Y., Suharman, H., and Hasyir, D.A. 2020. Impact of Corporate Sustainability on Firm Value: Indonesian Context, Journal of Accounting Auditing and Business, 3(1), 102-110
Simon, B. 2016. What Is Stakeholder Theory and How Does It Impact an Organization? Accessed on January 28, 2021. https://www.smartsheet.com/what-stakeholder-theory-and-how-does-it-impact-organization
Slaper, T.F., and Hall, T.J. 2011. The Triple Bottom Line: What Is It and How Does It Work?, Working paper, Indiana University Kelley School of Business.
Timothy, F.S., & Tanya, J.H. 2011. The Triple Bottom Line: What Is It and How Does It Work?, Indiana Business Review, 86(1), 4-6
Yasser, Q.R. 2012. Effects of Female Directors on Firms Performance in Pakistan, Modern Economy, 3, 817-825
Yayasan Keanekaragaman Hayati. 2009. Indeks SRI-KEHATI. Accessed on July 22, 2021. https://www.kehati.or.id/index-sri-kehati/