The Effect of Sustainability Report on Financial Performance and Corporate Value (Case study on companies participating in ASRRAT for period of 2015-2019)

Akbar Fadillah; Rindah Suryawati

Proceedings of the 1st International Conference on Sustainable Management and Innovation, ICoSMI 2020, 14-16 September 2020, Bogor, West Java, Indonesia

Research Article

The Effect of Sustainability Report on Financial Performance and Corporate Value (Case study on companies participating in ASRRAT for period of 2015-2019)

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@INPROCEEDINGS{10.4108/eai.14-9-2020.2304460,
    author={Akbar  Fadillah and Rindah Febriana Suryawati},
    title={The Effect of Sustainability Report on Financial Performance and Corporate Value (Case study on companies participating in ASRRAT for period of 2015-2019)},
    proceedings={Proceedings of the 1st International Conference on Sustainable Management and Innovation, ICoSMI 2020, 14-16 September 2020, Bogor, West Java, Indonesia},
    publisher={EAI},
    proceedings_a={ICOSMI},
    year={2021},
    month={5},
    keywords={asia sustainability reporting rating (asrrat) corporate social responsibility (csr) corporate value financial performance sustainability report},
    doi={10.4108/eai.14-9-2020.2304460}
}

Akbar Fadillah
Rindah Febriana Suryawati
Year: 2021
The Effect of Sustainability Report on Financial Performance and Corporate Value (Case study on companies participating in ASRRAT for period of 2015-2019)
ICOSMI
EAI
DOI: 10.4108/eai.14-9-2020.2304460

Akbar Fadillah¹, Rindah Febriana Suryawati¹^,*

1: Faculty of Economics and Management, IPB University

*Contact email: rindah.suryawati@apps.ipb.ac.id

Abstract

Corporate Social Responsibility (CSR) is a strategy of alignments between the company, the community, and the environment. The disclosure of CSR activities through the Sustainability Report has been found to influence on the financial performance and value of the company itself. However, some previous researches showed inconsistent results. Asia Sustainability Reporting Rating (ASRRAT) is a form of appreciation for companies that have been implementing and reporting on their CSR activities granted by National Center for Sustainability Reporting (NCSR). Descriptive analysis and Structural Equation Modelling Partial Least Square (SEM PLS) used to analyze the hypothesis. . The purpose of this study is to analyze the correlation of sustainability report with financial performance and value performance of a company. This study shows that the sustainability report has a positive and significant impact on financial performance but has no significant effect on corporate value. Corporate value was positively and significantly affected by financial performance

Keywords: asia sustainability reporting rating (asrrat) corporate social responsibility (csr) corporate value financial performance sustainability report

Published: 2021-05-05
Publisher: EAI

: http://dx.doi.org/10.4108/eai.14-9-2020.2304460