Sustainability reporting in Indonesian listed banks

Prihatnolo Gandhi Amidjaya and Ari Kuncara Widagdo

Journal of Applied Accounting Research, 2019, vol. 21, issue 2, 231-247

Abstract: Purpose - The purpose of this paper is to find empirical evidence of ownership structure and corporate governance (CG) effect on sustainability reporting in Indonesian listed banks. The study also tries to describe sustainability reporting disclosure practice. Design/methodology/approach - The authors analyze balanced panel data with a total of 155 observations from 2012 to 2016 using panel data regression. Findings - The findings present empirical evidence that sustainability reporting in Indonesian listed banks is still low. CG, foreign ownership and family ownership positively influence sustainability reporting. Further, the authors find that family ownership weakens the effect of CG while foreign ownership has no significant moderating role. Digital banking is not a significant determinant and OJK sustainable finance roadmap is evidenced to have no impression on bank intention to produce sustainability report. Research limitations/implications - The use of content analysis method for variable measurement may contain subjectivity substance from the researcher’s perspective. Further research works need confirmation from independent parties with expertise in this subject. Further research works can also implement the mixed method by combining quantitative and qualitative approach to gain better quality. Practical implications - The result of this study underlines the need for sustainability reporting improvement, followed by suggestions for Indonesian banking regulator. Originality/value - This paper provides a description of Indonesian banks sustainability reporting and evidence of CG and controlling owner’s role in its practice. The research presents a novelty, examining the role of digital banking as determinant.

Keywords: Corporate governance; Sustainability; Social and environmental reporting; Ownership structure (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaarpp:jaar-09-2018-0149

DOI: 10.1108/JAAR-09-2018-0149

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