| Abstrakt: |
Sustainability Reporting (SR) is a report containing economic, social, and environmental information, mandatory for public companies in Indonesia since the issuance of POJK regulation Number 51/POJK.03/2017. However, not all companies prepare SRs, and many do not focus on the determinants of SR quality, resulting in substandard reports. This study examines the determinants of SR quality using the institutional isomorphism theory approach. The research hypothesis posits that SR quality is influenced by CSR disclosures (economic, social, and environmental), creditor pressure, pressure from industry groups, government pressure, and the diffusion of shareholding structures (both high- and low-based) influences SR quality. The research sample consists of 305 public companies in Indonesia listed on the IDX during 2017-2020. Data were analyzed using content analysis and Multivariate Regression. The study results indicate that almost all hypotheses were confirmed to impact SR quality, except for government pressure, which is not supported due to the relatively small government share ownership, rendering it ineffective. The study also finds that the diffusion of shareholding structures, both high and low, can influence SR quality. On average, the quality of SR among public companies in Indonesia is 64.5% in the medium category, suggesting that companies are disclosing SR information in accordance with the POJK provisions and considering the principles of relevance and reliability, thereby making SR useful for decision-making. [ABSTRACT FROM AUTHOR] |
