FIRMS CHARACTERISTICS, SUSTAINABILITY REPORTING AND VALUE OF THE FIRM (An Empirical Analysis of Public Companies Listed in Indonesia)

Abstract

Sustainability Report is a model corporate information to stakeholders or stakeholder integrate financial reporting with social reporting, environment reporting and corporate governance reporting in one reporting package. Sustainability Report is designed to help corporate plan, prepare, report and disclose information about the commitment, implementation, measurement, disclosure and corporate accountability on performance management issues of economic, social and environmental and corporate governance to the internal and external stakeholders in order to realize the vision as well as ongoing corporate objectives and stakeholders. The objectives of this study are: to analyze the influence of profitability on sustainability reporting and value of the firm, to analyze the influence of leverage on sustainability reporting and value of the firm, to analyze the influence of type industry on sustainability reporting and value of the firm, to analyze the influence of company size on sustainability reporting and value of the firm, to analyze the influence of sustainability reporting on value of the firm. The population of this study are all public companies listed in Indonesia Stock Exchange (IDX). The samples in this study using non probability sampling that is purposive sampling method. Technique analysis used are regression linear with classical assumption. This research investigate the relationship between profitability, leverage, type industry, company size, sustainability reporting and value of the firm as comprehensive framework. Based on the result, so the conclusion as follows: Profitability and leverage has no influence on Sustainability reporting, Profitability has influence on Value of the firm, but Leverage has no affect on value of the firm. High profile industry has influence on sustainability reporting. So the company that include high profile industry. High profile industry has no influence on value of the firm, Company size has influence on sustainability reporting, but company size has no influence on value of the firm, Sustainability reporting has no influence on value of the firm.