The Moderating Effect of Environmental Performance on Relationship Between Social Sustainability and Foreign Institutional Ownership

Sully Kemala Octisari, Puji Lestari


This study aims to examine the relationship between social sustainability disclosure and the level of foreign institutional ownership in Indonesia with environmental performance as moderating. Environmental performance in this research is measured by ISO 140001 certification. The data used in this study is secondary data consisting of annual reports and sustainability reports of companies listed in SRI-KEHATI Index obtained from the Indonesian Stock Exchange and companies’ official website from 2017 until 2021. The final sample used in this study consisted of 12 companies that met the sample selection criteria. This research used Moderated Regression Analysis with Sub Group (dummy) Method using SPSS 23 to analyze the data. The result shows that there is negative relationship between social sustainability disclosure and the level of foreign institutional ownership. Environmental performance is proven to moderate the relationship between social sustainability disclosure and the level of foreign institutional ownership of companies listed SRI-KEHATI Index.

Keywords: Social Sustainability, Environmental Performance, Foreign Institutional ownership

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