DETERMINANTS OF SUSTAINABILITY REPORTS DISCLOSURE: EMPIRICAL EVIDENCE FROM ISLAMIC BANKING IN INDONESIA
Adinda Putri Nur Wahidin, Noven Suprayogi

Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga

Abstract

This study aims to determine the effect of market share, board of directors, audit committee, and total assets on sustainability report disclosure of Islamic banks in Indonesia from 2015-2019. This research is a quantitative study that uses multiple linear regression analysis. The sampling technique was purposive sampling, in order to obtain 11 sample Islamic banks, and a total of 55 data were used. Based on the results of the study, the conclusions are that Islamic commercial banks that have a high level of market share tend not to make better sustainability disclosures in their annual reports or sustainability reports. Islamic commercial banks with high total assets have an influence on the disclosure of sustainability reports in either the annual report or the sustainability report. Meanwhile, the number of boards of directors and audit committees that do not have a significant effect on sustainability disclosure shows that Islamic commercial banks disclosing sustainability reports are not influenced by these factors. This study concludes that partially the total asset variable positively affects the disclosure of sustainability reports at Islamic Commercial Banks in Indonesia. On the other hand, the market share variable has a significant adverse effect on the disclosure of the sustainability report. Moreover, the variables of the board of directors and the audit committee do not affect the disclosure of the sustainability report. Meanwhile, simultaneously the market share, board of directors, audit committee, and total assets have a significant positive effect on the disclosure of sustainability reports at Islamic Commercial Banks in Indonesia for the 2015-2019 period. The results of this study are expected to help banks optimize the disclosure of sustainability reports to facilitate stakeholders in making decisions and for regulators in evaluating policies regarding the disclosure of sustainability reports.

Keywords: Audit Committee, Board of Directors, Islamic Commercial Bank, Market Share, Sustainability Reporting

Topic: Islamic accounting, auditing, and performance changes