The Effect of Sustainability Reporting on Company Financial Performance of Mining Sector Companies in Indonesia

Abstract

This study aims to analyze the effect of Reporting Sufficiency on the financial performance of mining sector companies in Indonesia in the 2012-2016 period. The study uses secondary data sourced from the Mining Company Annual Report registered on the Indonesia Stock Exchange. The number of objects in this study were 20 companies for 4 years, so the total number of research samples was 80 samples. The collected data is then analyzed using descriptive analysis and path analysis. The study results show that Sustainability Reporting does not significantly influence ROA, ROE, and Tobin's Q. This finding implies that although the contribution of sustainability reporting to financial performance is not significant, it does not mean the existence of sustainability reporting is eliminated. Sustainability reporting is still needed to track, measure, plan and execute company activities to stay on the path of sustainability.