Sustainability Reporting: The Moderating Role of Audit Committee on Financial Performance

Abstract

Sustainability reporting is a tool for companies to communicate the efforts and results they make in managing themselves based on their environment, social and economy. This study examines financial factors affecting the level of sustainability reporting disclosure moderated by audit committee activity. The samples used were go-public companies listed in SRI-KEHATI index in 2019, and the ones participated in the Sustainability Award organized by NCSR in 2019 and published the 2018 sustainability reporting. The results confirm that firm size does not affect the level of sustainability reporting disclosure, while both liquidity and profitability variable affect. The frequency of audit committee meetings fails to moderate the relationship between firm size and the level of sustainability reporting disclosure, but is able to moderate both of the relationships between liquidity and profitability with the level of sustainability reporting disclosure. This result is expected to provide benefits for academics in developing researches on sustainability reporting