Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia

Abstract

This study aims to determine the effect of disclosure of sustainability reports (SR) on economic performance aspects, environmental performance aspects, and social performance aspects of a company's financial performance by using the ratios of return on equity (ROE), return on sales (ROS), and return on assets (ROA). To mining companies listed on the Indonesia Stock Exchange (IDX). This study uses quantitative and secondary data. The data collection technique is to record data on the financial reports of companies listed on the Indonesia Stock Exchange for the 2018–2022 period. The research population consists of mining companies listed on the Indonesia Stock Exchange, using a purposive sampling technique with a sample of 50 companies. They use multiple linear regression methods with the help of SPSS software as an analysis method. The analysis results show that the economic aspect of the sustainability report (SR) variable has a significant effect on the company's financial performance using the return on asset (ROA) ratio. The SR variable in the economic aspect significantly affects financial performance using the return on equity (ROE) ratio. The economic aspect of the SR variable influences and is significant in financial performance using the return on sales (ROS) ratio. The environmental aspect of the SR variable has no effect and is not significant on financial performance using the ratio of return on assets (ROA). The environmental aspect The SR variable significantly influences financial performance using the return on equity ratio (ROE). Variable SR environmental aspects have no effect and are not significant on financial performance using the return on sales (ROS) ratio. The social aspect of the SR variable influences and is significant in financial performance using the ratio of return on assets (ROA). The social aspect (SR) variable has no effect and is not significant on financial performance using the return on equity ratio (ROE). The social aspect of the SR variable significantly influences financial performance using the return on sales (ROS) ratio.