The Effect of Profitability, Leverage, Liquidity, and Company Size on Sustainability Report Disclosure with Corporate Governance as a Moderating Variable in Energy Sector Companies in 2019-2023

Abstract

This research investigates the influence of financial performance, corporate governance, and green accounting on the disclosure of sustainability reports (SR) among companies listed on the Indonesia Stock Exchange (IDX). With growing global awareness and regulatory pressure surrounding sustainable business practices, understanding the factors that drive companies to disclose their sustainability performance has become increasingly vital. The study uses secondary data collected from 20 companies over the period 2018–2022. Key variables examined include profitability, leverage, liquidity, firm size, audit committee, board of commissioners, institutional ownership, and green accounting. Quantitative analysis was conducted using panel data regression to assess both the direct effects of these variables and their potential moderating roles. The results show that most financial variables such as profitability, leverage, liquidity, and firm size do not significantly influence sustainability reporting. Additionally, moderating variables—such as the audit committee, institutional ownership, and green accounting—did not show a significant interaction effect. Interestingly, only the board of commissioners demonstrated a significant and positive effect on sustainability report disclosure, suggesting that governance factors may be more influential than traditional financial metrics. These findings highlight the importance of strengthening governance structures to improve sustainability transparency. The study offers practical implications for corporate managers and policymakers by emphasizing the role of governance over purely financial considerations in promoting sustainability practices. It also opens avenues for further research into non-financial and qualitative determinants of sustainability reporting behavior in emerging markets.