The Effect of Sustainability Report Disclosure on Company Performance and Value (Case Study on Manufacturing Companies Listed on the IDX 2019-2023)

Abstract

The development of the SDGs has made companies more responsible for sustainability goals. One form of this responsibility must be reported in the form of a sustainability report. The purpose of this study is to analyze the effect of the disclosure of economic performance, environmental performance, and social performance in sustainability reports on company performance (ROA), and on company value (PBV) in manufacturing companies listed on the IDX. The type of data used in this research is quantitative data from secondary sources. The data analysis methods used were descriptive statistical analysis and panel data regression analysis. This research shows that the disclosure of the sustainability report, both partially and simultaneously, does not affect the company's performance. Meanwhile, in terms of firm value, the partial disclosure of the sustainability report has no effect, but the simultaneous disclosure has an effect. Manufacturing companies can continuously improve their sustainability report disclosures to gain higher positive response and appreciation from stakeholders.

Keywords: Company performance, company value, sustainability report disclosure, manufacturing companies, SDGs