SABRINA, GESILA FINCA (2026) DETERMINANT FACTORS OF SUSTAINABILITY REPORTS: THE MODERATING ROLE OF INSTITUTIONAL OWNERSHIP. Master thesis, Universitas Sultan Ageng Tirtayasa.

Text Sabrina Gesila Finca_5552210085-Fulltext-1.pdf Download (1MB)

Abstract

This study examines the influence of board size, board independence, and profitability on sustainability report disclosure, with institutional ownership as a moderating variable in non-cyclical consumer sector companies in Indonesia for the 2020–2023 period. Previous studies generally used the overall ASEAN CG Scorecard score, but this approach tends to overlook other relevant factors. To address this limitation, this study applies more specific governance indicators and includes profitability as an additional factor. Using Moderated Regression Analysis on 95 observations, the results show that board size and independence have a significant positive effect on sustainability disclosure, consistent with agency theory. Conversely, profitability has no significant effect, contrary to the predictions of stakeholder theory. The main finding is that institutional ownership actually weakens the positive effect of board size and independence and does not moderate the relationship between profitability and disclosure. These findings uncover a substitution effect where short-term-oriented institutional investors prioritize immediate financial returns over long-term sustainability transparency, reducing board effectiveness in serving broader stakeholder interests. This study contributes to methodological progress through specific corporate governance and reveals critical limitations of institutional monitoring in the Indonesian sustainability context.

Actions (login required)

View Item