The Effect of Sustainability Information Disclosure on Financial and Market Performance: Empirical Evidence from Indonesia and Malaysia

Pancawati Hardiningsih, Indira Januarti, Etna Nur Afri Yuyetta, Ceacilia Srimindarti and Udin Udin
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Pancawati Hardiningsih: Faculty of Business and Economics, Diponegoro University, Indonesia,
Indira Januarti: Faculty of Business and Economics, Diponegoro University, Indonesia,
Etna Nur Afri Yuyetta: Faculty of Business and Economics, Diponegoro University, Indonesia,
Ceacilia Srimindarti: Faculty of Business and Economics, Stikubank University, Indonesia,
Udin Udin: Faculty of Business and Economics, Universitas Muhammadiyah Yogyakarta, Indonesia.

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 2, 18-25

Abstract: This study aims to analyze the effect of sustainability information disclosure on financial and market performance. Using purposive sampling, this study obtains 21 mining sector companies in Indonesia and 18 companies in Malaysia. Regression analysis with WarpPLS is used to test the proposed hypotheses. The results show that environmental and social disclosure has a significant effect on return on assets (ROA), return on equity (ROE), price-earnings ratio, and Tobin Q in Indonesia and Malaysia. Overall, there is no significant difference in financial and market performance between Indonesia and Malaysia. Good sustainability information disclosure further improves financial performance and trust among stakeholders and regulators in decision making, which in turn, increases corporate value.

Keywords: Environmental disclosure; social disclosure; financial performance; corporate value (search for similar items in EconPapers)
JEL-codes: E44 M14 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2020-02-3

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