Impact of Corporate Governance on Company's Performance with Sustainability Reporting as an Intervening Variable in Indonesia

摘要

This study aims to examine the effect of corporate governance on the company's performance with sustainability reporting as an intervening variable in Indonesia. The population of this study is a manufacturing company listed on the Indonesian Stock Exchange for the period 2010-2015. The sample selection used purposive sampling method and resulted in 102 manufacturing firms listed on the Indonesia Stock Exchange. The results show that: (1) Corporate governance with audit committee as a proxy affects sustainability reporting of economic and environmental dimensions, and docs not affect sustainability reporting of the social dimension. Furthermore, institutional ownership, managerial ownership and independent board of commissioners do not affect sustainability reporting of economic, environmental, and social dimensions. (2) Corporate governance with audit committee as a proxy affects the company's performance, while institutional ownership, managerial ownership and independent board of commissioners do not affect the company's performance (3) Sustainability reporting of economic, environmental and social dimensions do not affect the company's performance. The contribution of this study provides the theoretical addition of knowledge as well as a completion the previous studies. The findings are expected to help regulators formulate government policy decisions that promote corporate governance and sustainability reporting on the company's performance, thereby making the entity more responsive to changes in sustainability activities. Similarly, the results of research provide input for stakeholders as a consideration in decision making.