Factors Affecting the Disclosure of Sustainability Reports in LQ45 Companies from 2018 To 2023

Abstract

This research aimed to determine the factors affecting the disclosure of sustainability reports in LQ45 companies in Indonesia from 2018 to 2023. Sustainability reporting is an important instrument for corporate transparency and accountability in environmental, social and governance issues. Therefore, understanding the main factors that determine the disclosure of sustainability reports is essential to deliver comprehensive reports and compliance with established standards. The population used in this study is companies listed on the LQ45 Index of the Indonesia Stock Exchange over a period of six years from 2018 up to 2023. The sample was determined by a purposive sampling method. The number of samples that met the criteria was 17 companies with a total of 102 company years of observation data. The research data is sourced from the company's annual report and sustainability report. The regression model used is panel data regression and data processing is carried out by using Eviews-12 data processing applications. The results showed that board of independent commissioners size, board of directors size, and external assurance had a significant positive impact on the disclosure of sustainability reports. While employee pressure did not significantly impact the disclosure of sustainability reports. These findings highlighted the importance of both internal governance structures and external stakeholder influences in enhancing the credibility and transparency of sustainability disclosures. The study provided valuable insights for corporate leaders, policymakers, and stakeholders in promoting high-quality sustainability reporting practices in Indonesia’s capital market.