Bank Financial Soundness and The Disclosure of Banking Sustainability Reporting in Indonesia
S S Embuningtiyas1 , O R Puspasari2, AAG S Utama1, R I Ardianti1

Airlangga University

Abstract

Abstract. Sustainability reporting is a model of reporting company”s informations to stakeholders that integrates several reports, namely financial, social, and environment which are integrated in one reporting package. The purpose of sustainability reports is to provide information to stakeholders that the company does not merely prioritize aspects of profit, but also pay attention to social factors and environmental sustainability. This study aims to investigate whether disclosure of sustainability reporting on banking companies that are measured using content analysis is influenced by bank soundness, which include risk profile non performing loans (NPL) and loan to deposit ratios (LDR), good corporate governance (GCG), earnings that use ROA as indicators, and capital that is measured by CAR ratio. The sample used are 7 conventional banks in Indonesia that determined using purposive sampling method, while the periode start from 2014-2018. Multiple regression analysis was used to analyze the data. The results show that NPL, LDR and CAR don”t affect the disclosure of sustainability reporting. While the GCG and earning (ROA) influence the disclosure of sustainability reports in conventional banking companies in Indonesia.

Keywords: Sustainability Reporting, Non Performing Loan, Loan to Deposit Ratio, Good Corporate Governance, Return On Assets and Capital Adequacy Ratio

Topic: Sustainability Reporting

Link: https://ifory.id/abstract-plain/HGZpKYRgjrfd

Web Format | Corresponding Author (sandra sukma embuningtiyas)