SUSTAINABLE DEVELOPMENT GOALS DISCLOSURES AND COMPANY VALUES
A STUDY OF DIFFERENT TYPES OF INDUSTRY
Abstract
The existence of a global governance agenda requires companies all over the world to get involved in implementing Sustainable Development Goals (SDGs). However, previous study showed that corporate involvement in the achievement of SDGs is overall still limited and question on the company motives to disclose SDGs remains unclear. Therefore, the objective of this study is to analyze the association between SDGs disclosures and company values. This study also aimed to analyze the moderating effect of type of industry on the association between SDGs disclosures and company values. Study was conducted on companies listed in IDX, which disclosed SDGs in their Sustainability Reports. The results of this study suggest SDGs disclosures is associated to company value, which confirmed the signaling motives in the involvement of corporate SDGs. The results also showed that different types of industry could weaken the relationship between SDGs disclosure and company values, when associated with high-profile industry companies.
References
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Almontaser, T., and Gerged, A. 2019. Exploring Corporate Sustainable Development Goals (SDGs) Disclosure in a Politically Unstable Environment: Evidence from the Libyan Oil Industry. Sustainability, Accounting, Management, and Policy Journal. DOI: 10.1108/SAMPJ-04-2019-0136. (In press).
Brainard, W.C., and Tobin, J. Pitfalls in Financial Model Building. American Economic Review. Vol LVIII., No. 2, May, 1968.
GRI, UN PRI and UN Global Compact. 2018. In Focus: Addressing Investor needs in Business Reporting on the SDGs. Diunduh tanggal 8 Maret 2020,
https://www.globalreporting.org/resourcelibrary/addressing investor-needs-SDGs-reporting.pdf
Hair et al, J. F. 2007. Research Method for Business. John Wiley & Sons.
Hummel, K. 2019. Reporting on the Sustainable Development Goals – Early Evidence from Europe. Available at SSRN: https://ssrn.com/abstract=3411017 or http://dx.doi.org/10.2139/ssrn.3411017
KPMG. 2018. How to Report on the SDGs. Retrieved from https://home.kpmg.com
Lang, L.H.P., Stulz, R.M, and Walkling, 1989. Managerial Performance, Tobin’s q, and the Gains from Successful Tender Offers. Journal of Financial Economics (September), 137-154.
Luo, X., and Bhattacharya, C. B. 2006. Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70, 1-18.
Martin, R., Yadiati., W., Pratama., A. 2018. CSR Disclosure and Company Financial Performance: Do High and Low-Profile Industry Moderate the Results? Indonesian Journal of Sustainability Accounting and Management, Vol 2(1), 15-24.
Menassa, E., and Brodhäcker, M. 2015. The type and quantity of corporate social disclosures of German ‘Universal’ banks. Journal of Management and Governance 21(1).
Muhmad, S.N. and Muhamad, R. 2020. Sustainable business practices and financial performance during pre- and post-SDG adoption periods: a systematic review. Journal of Sustainable Finance & Investment. DOI: 10.1080/20430795.2020.1727724
Ross, S. A. 1977. The Determination of Financial Structure: The Incentive-Signalling Approach. The Bell Journal of Economics, 8(1), 23-40.
Roberts, R. W. 1992. Determinants of Corporate Social Responsibility Disclosure: An Application of Stakeholder Theory. Accounting, Organizations and Society, 17(6), 595–612. http://doi.org/10.1016/0361- 3682(92)90015-K
Sekaran, U., and Bougie, R. 2017. Metode Penelitian untuk Bisnis. Jakarta: Penerbit Salemba Empat.
Subramaniam, N, et al. 2019. SDG Measurement and Disclosure by ASX150, RMIT University and Global Compact Network Australia, Melbourne, Australia.
http://www.unglobalcompact.org.au/new/wpcontent/uploads/2019/08/2019.08_SDG_Summary_Report_compressed.pdf
Theresia. 2018. Analisis Penerapan Sustainable Development Goals (SDG) Pada Beberapa Anggota Indonesia Global Compact Network (IGCN). Prosiding National Conference of Creative Industry: Sustainable Tourism Industry for Economic Development Universitas Bunda Mulia, Jakarta, 5-6 September 2018
Tobin, J. 1969. A General Equilibrium Approach to Monetary Theory. Journal of Money, Credit and Banking (February), pp. 12-2.
Van der Waal, J.W.H. and Thijssens, T. 2020. Corporate involvement in Sustainable Development Goals: Exploring the territory. Journal of Cleaner Production Volume 252, 10 April 2020.
Van Zanten, J. A. & Van Tulder, R. 2018. Multinational Enterprises and the Sustainable Development Goals: An Institutional Approach to Corporate Engagement. Journal of International Business Policy 1(3–4), 208–233.
https://doi.org/10.1057/s42214-018-0008-x
Weston, J. Fred dan Copeland, Thomas E. 2001. Manajemen Keuangan Jilid I. Edisi ke-9. Jakarta: Binarupa Aksara.
Yane Devi Anna dan Dita Rari Dwi R.T. 2019. Sustainibility Reporting: Analisis Kinerja Keuangan dan Nilai Perusahaan (Studi Empiris terhadap Perusahaan yang terdaftar di National Center for Sustainability Reporting). Jurnal ASET (Akuntansi Riset), 11 (2), 238-255.
Published
2020-06-15
How to Cite
Sasanti, E. E., Cahyaningtyas, S. R., & R. Sapto Hendri Boedi Soesatyo. (2020). SUSTAINABLE DEVELOPMENT GOALS DISCLOSURES AND COMPANY VALUES. Jurnal Riset Akuntansi Aksioma, 19(1), 29-45. https://doi.org/10.29303/aksioma.v19i1.85
Section
Articles
