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Abstract

The purpose of this research is to examine the effect of stakeholder pressure and corporate governance on the quality of sustainability report. We use environment, employee, consumer, and shareholder as stakeholder while the board of commissioner effectiveness and family ownership are used as corporate governance component. This research uses multiple regression methods with total observations of 123 sustainability reports of listed firms on Indonesia Stock Exchange in 2010-2014. The result shows companies that get pressure from the environment and consumer have a higher quality of sustainability report than other firms. Pressure from employee positively affects the quality of sustainability report. Meanwhile, pressure from shareholders has no effect on quality of sustainability report. Board of commissioner effectiveness positively affects the quality of sustainability report, and family ownership has no effect on quality of sustainability report.

Keywords: Board of Commissioner effectiveness, corporate governance; family ownership; stakeholder pressure; sustainability report quality

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