Indonesia Conference Directory

Disclosure of sustainability reporting can perceive accountability and increase company value for stakeholder decision making. The phenomenon of indifference to social, environmental and other non-financial elements requires that governments and international institutions form additional standards and regulations as guidelines for reporting company performance. Sustainability reporting is an additional standard for representing a companys overall performance by incorporating the companys environmental, social and economic aspects. This study aims to examine the effect of continuous reporting on financial performance applying quantitative methods with multiple linear regression which tests several independent variables on one dependent variable. This study uses secondary data in the form of financial statements of 17 companies listed in the Jakarta Islamic Index 2014-2016. The sampling technique was determined by the purposive sampling method. The research hypothesis is whether sustainable reporting influences financial performance as measured by asset management ratios, profitability ratios, liquidity ratios and market ratios. The normality test explains that all variables meet the assumption of normality. The Kolmogorov-Smirnov significance value is greater than 0.05. There is no autocorrelation and heteroscedasticity in all variables. The statistical t-test and determination test show different percentages for each variable. The conclusion of this study concludes that sustainability reporting has no effect on asset management ratios, due to the limited reporting of intangible assets in Indonesia. In addition, sustainability reporting affects six variables of profitability ratios, liquidity ratios and market ratios. These results indicate that companies listed on the Indonesia Stock Exchange and regularly reported in the Jakarta Islamic Index have adopted sustainability reporting properly.