Research Article
Does Sustainability Disclosure Valuable? Study on Issuers under the SRI-KEHATI Index of the Indonesia Stock Exchange
@INPROCEEDINGS{10.4108/eai.14-9-2020.2304900, author={Budi Purwanto and Luthpiyah Juliandra and Siti Jahroh}, title={Does Sustainability Disclosure Valuable? Study on Issuers under the SRI-KEHATI Index of the Indonesia Stock Exchange}, 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={fundamental performance market performance sri-kehati index sustainability disclosure}, doi={10.4108/eai.14-9-2020.2304900} }- Budi Purwanto
Luthpiyah Juliandra
Siti Jahroh
Year: 2021
Does Sustainability Disclosure Valuable? Study on Issuers under the SRI-KEHATI Index of the Indonesia Stock Exchange
ICOSMI
EAI
DOI: 10.4108/eai.14-9-2020.2304900
Abstract
Sustainability disclosures are intended to attract investors' attention, however, for issuers under the SRI-KEHATI Index, their fundamental performance does not better than under market performance in general. This study aims to analyze whether the disclosure of sustainability can create economic value added and market value. The sample is all issuers under the SRI-KEHATI index from the beginning to 2019 which are filtered based on reporting performance. Sustainability disclosure includes environmental, social and growth factors. The analysis was performed using a moderated fixed effects panel data regression model. The results show that the disclosure of sustainability does not have a direct effect on both market and economic value added, and does not strengthen or weaken the relationship between economic added and market value. This result implies that investors do not aware of the effect of sustainability disclosure on the fundamental performance and market value.