GOOD CORPORATE GOVERNANCE AND SUSTAINABILITY REPORTING QUALITY IN INDONESIA: DOES FAMILY MATTER? Arumega Zarefar, Dian Agustia, Wiwiek Dianawati
Department of Accounting, Faculty of Economics and Business, Universitas Riau
Department of Accounting, Faculty of Economics and Business, Universitas Airlangga
Department of Accounting, Faculty of Economics and Business, Universitas Airlangga
Abstract
Purposes: This study aims to examine the moderating effect of family ownership on the relationship between good corporate governance and sustainability reporting quality in Indonesia. Moreover, this study also analyzes the effect on each component of sustainability reporting, namely social, environmental and economic aspects.
Methods: Panel data regression is used on 975 firm-year samples of Indonesian public companies for the 2014-2020 period to test the proposed hypothesis.
Results: The findings of this study indicate good corporate governance has a positive effect on sustainability reporting quality. Furthermore, the most interesting finding is the fact family ownership weakens the positive effect of good corporate governance on sustainability quality.
Conclusion and suggestion: This study can be expanded by using other ownership types such as institutional, foreign, and managerial which will have different characteristics from the family ownership. Research can also be conducted in other countries with different institutional settings than Indonesia. Finally, we also encourage future research to develop measures of sustainability reporting quality to provide significant advances.
Keywords: Indonesia, Good Corporate Governance, Sustainability Reporting Disclosure, Family Ownership
