Role of Sustainability Report in Mediating the Effect of Board Size on Firm Value
Hamidah and Robi Sastra
Airlangga University
Abstract
Sustainability report is increasingly discussed in todays business world. The purpose of this paper is to obtain empirical evidence of (1) board size effect on firm value, (2) sustainability report effect on firm value, (3) board size effect on sustainability report, and (4) role of the sustainability report in mediating the effect of board size on firm value. This research uses quantitative methods, which take a sample of 103 companies that publish sustainability reports. The subjects in this study were all companies listed on the Indonesia Stock Exchange in the period 2013 to 2017. Based on the results of hypothesis testing obtained, board size and sustainability report are positively affected firms value, the effect of board size on sustainability report is not significant, and the sustainability report cannot mediate the board size relationship with firm value.
Keywords: Sustainability Report, Firm Value, GCG
Topic: Sustainability Reporting