The Effect of Company Sustainability Report Disclosure on Stock Prices

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Suryani
Khaula Lutfiati Rohmah

Abstract

Stock price is one of the important pieces of information for company stakeholders, especially investors. This is related to investment decisions and also its impact on the company. Many factors affect stock prices, which can usually be found in the analysis of the company's financial statements. In other words, financial statements are a source of information that can influence investor decision-making, which will then have an impact on stock prices. Currently, companies are trying to improve the quality of their financial reports, namely through full disclosure. One implementation of full disclosure is the sustainability report (SR). Currently, companies are required to disclose SR as an annual report based on regulations the Financial Services Authority in POJK Number 51 / POJK.03 / 2017.


The purpose of this study is to investigate how SR disclosure affects stock prices for firms in the energy and basic material sectors that are listed on the Indonesia Stock Exchange (IDX) between 2020 - 2022. The GRI standard index—which includes general disclosure, management approach, economic performance aspects, environmental performance aspects, and social performance aspects—is used to measure SR disclosure in this study. A descriptive quantitative technique is employed in this investigation. Purposive sampling was used in the study, and 45 firms made up the sample. Multiple linear regression analysis is the method used for this study's analysis. The study's findings suggest that stock prices are not impacted by general disclosure, management approach, economic and social performance aspects. Environmental performance aspects impact stock prices.

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