Determinan Factors of Sustainability Report : The Moderating Role of Institutional Ownership
Keywords:
Corporate governance, sustainability report, institutional ownership, profitability
Abstract
This study examines the influence of corporate governance mechanisms (board size and board independence) and profitability on the quality of sustainability report, with institutional ownership as a moderating variable in non-cyclical consumer companies listed on the Indonesia Stock Exchange during 2020-2023. Using quantitative analysis of 96 observations through Moderated Regression Analysis, the results reveal that board size and board independence have a positive effect on sustainability report, while profitability does not show a significant effect. Furthermore, institutional ownership moderates by weakening the relationship between governance mechanisms and sustainability report, but does not moderate the relationship between profitability and sustainability report.
References
Alta’any, M., Tauringana, V., Zalata, A., & Achiro, L. O. (2024). Unpacking sustainability reporting dimensions: the impact of board characteristics. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-09-2023-0568
Anifowose, M. (2025). Evidence of the impact of corporate governance on ESG disclosure in sub-Saharan Africa: the moderating role of ownership structure. International Journal of Disclosure and Governance, 0123456789. https://doi.org/10.1057/s41310-025-00294-3
Anyigbah, E., Kong, Y., Edziah, B. K., Ahoto, A. T., & Ahiaku, W. S. (2023). Board Characteristics and Corporate Sustainability Reporting: Evidence from Chinese Listed Companies. Sustainability (Switzerland), 15(4). https://doi.org/10.3390/su15043553
Beck, D. (2023). Stakeholder Theory for Sustainable Cities and Society: A Humanist and Environmental approach for integrating People, Institutions, and Environmental Ecosystems. Studia Ecologiae et Bioethicae. https://doi.org/10.21697/seb.2023.03
Blay, M. W., Hoeyi, P. K., Badu, E. A., & Jibril, A. B. (2024). Impact of Board Committee Characteristics on Social Sustainability Reporting in Sub-Saharan Africa: The Moderating Role of Institutional Ownership. Journal of Risk and Financial Management, 17(7). https://doi.org/10.3390/jrfm17070302
Collevecchio, F., Temperini, V., Barba-Sanchez, V., & Meseguer-Martinez, A. (2025). Sustainable Governance: Board Sustainability Experience and the Interplay with Board Age for Firm Sustainability. Journal of Business Ethics, 197(2), 371–389. https://doi.org/10.1007/s10551-024-05739-3
Dewi, I. A. S. P., & Ramantha, I. W. (2021). Good Corporate Governance, Ukuran Perusahaan, dan Sustainability Report dengan Kepemilikan Institusional Sebagai Pemoderasi. E-Jurnal Akuntansi, 31(6), 1451. https://doi.org/10.24843/eja.2021.v31.i06.p08
Faza, Q. N., Fitriani, R. A. N., & Rajib, R. K. (2024). Penegakan Hukum terhadap Kasus Pencemaran PT. Greenfields diBlitar Jawa Tengah. Jurnal Multidisiplin Ilmu Akademik, 1(3). https://doi.org/DOI: https://doi.org/10.61722/jmia.v1i3.1372
Freeman, R. E., Wicks, A. C., & Parmar, B. (2004). Stakeholder Theory and “The Corporate Objective Revisited.” Organization Science, 15(3), 364–369. https://doi.org/10.1287/orsc.1040.0066
Hamidah, & Arisukma, A. A. (2020). The influence of corporate governance on sustainability report management: The moderating role of audit committee. Polish Journal of Management Studies, 21(1), 146–157. https://doi.org/10.17512/pjms.2020.21.1.11
Jamil, A., Mohd Ghazali, N. A., & Puat Nelson, S. (2021). The influence of corporate governance structure on sustainability reporting in Malaysia. Social Responsibility Journal, 17(8), 1251–1278. https://doi.org/10.1108/SRJ-08-2020-0310
Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm : Managerial Behavior, Agency Cost and Ownership Structure. In Journal of Financial Economics (Vol. 3). Q North-Holland Publishing Company.
Juwita, N., & Honggowati, S. (2021). Corporate Board Diversity and Sustainability Reporting: Empirical Evidence from Indonesia Before and During COVID-19. Journal of Accounting and Investment, 23(1), 1–15. https://doi.org/10.18196/jai.v23i1.12767
Kalbuana, N., Kusiyah, K., Supriatiningsih, S., Budiharjo, R., Budyastuti, T., & Rusdiyanto, R. (2022). Effect of profitability, audit committee, company size, activity, and board of directors on sustainability. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2129354
Klettner, A. (2021). Stewardship Codes and the Role of Institutional Investors in Corporate Governance: An International Comparison and Typology. British Journal of Management, 32(4), 988–1006. https://doi.org/10.1111/1467-8551.12466
Kulsum, S. (2025). 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. International Journal of Social Discussion, 2(2), 92–109. https://doi.org/10.59613/ijsd.v2i2.10
Lewa, E. M., Gatimbu, K. K., & Kariuki, P. W. ombe. (2024). Board attributes and sustainability reporting of selected listed nonfinancial firms in anglophone Sub-Saharan African countries: A multinomial logistic regression. Heliyon, 10(9). https://doi.org/10.1016/j.heliyon.2024.e29824
Lin, P. T., Li, P., & Akbar, A. (2024). Examining the influence of institutional investors on the readability of environmental disclosure inCSR reports of Chinese listed firms. Corporate Social Responsibility and Environmental Management, 31(2), 1254–1267. https://doi.org/10.1002/csr.2629
López‐Gamero, M. D., Molina‐Azorín, J. F., Pereira‐Moliner, J., & Pertusa‐Ortega, E. M. (2023). Agility, innovation, environmental management and competitiveness in the hotel industry. Corporate Social Responsibility and Environmental Management, 30(2), 548–562. https://doi.org/10.1002/csr.2373
Maryana, M., & Carolina, Y. (2021). The Impact of Firm Size, Leverage, Firm Age, Media Visibility and Profitability on Sustainability Report Disclosure. Jurnal Keuangan Dan Perbankan, 25(1). https://doi.org/10.26905/jkdp.v25i1.4941
Mujiani, S., Juardi, & Ainun Nadhifah. (2021). SUSTAINABILITY REPORT DISCLOSURE: A GOOD CORPORATE GOVERNANCE MECHANISM. RELEVAN : Jurnal Riset Akuntansi, 1(2), 60–72. https://doi.org/10.35814/relevan.v1i2.2256
Pandapotan, F. (2023). Role of institutional ownership in moderating profitability and board of directors on sustainability report disclosure. Asian Journal of Economics and Business Management, 2(2), 291–299. https://doi.org/10.53402/ajebm.v2i2.356
Sari, M. P., Dewi, S. R. K., Raharja, S., Dinanti, A., & Rizkyana, F. W. (2023). Good corporate governance as moderation on sustainability report disclosure. Journal of Governance and Regulation, 12(3), 16–24. https://doi.org/10.22495/jgrv12i3art2
Setiawan, R., Handiliastawan, I., & Jafar, R. (2020). Commissioner board characteristics, ownership concentration, and corporate performance. Jurnal Keuangan Dan Perbankan, 24(2). https://doi.org/10.26905/jkdp.v24i2.3827
Shinta, A. D., Deniswara, K., & Liu, V. T. (2023). The Effect of Audit Quality, Institutional Ownership, Profitability, and Firm Size on Sustainability Reporting Assurance of Companies Listed on SRI-KEHATI Index in 2019-2021. E3S Web of Conferences, 426. https://doi.org/10.1051/e3sconf/202342601038
Singh, A., & Chakraborty, M. (2021). Does CSR disclosure influence financial performance of firms? Evidence from an emerging economy. Sustainability Accounting, Management and Policy Journal, 12(4), 788–810. https://doi.org/10.1108/SAMPJ-02-2018-0042
Sjåfjell, B. (2018). Redefining agency theory to internalize environmental product externalities: A tentative proposal based on life cycle thinking. In Preventing Environmental Damage from Products: An Analysis of the Policy and Regulatory Framework in Europe (pp. 101–124). Cambridge University Press. https://doi.org/10.1017/9781108500128.005
Tajuddin, A. H., Akter, S., Mohd-Rashid, R., & Mehmood, W. (2023). The influence of board size and board independence on triple bottom line reporting. Arab Gulf Journal of Scientific Research. https://doi.org/10.1108/AGJSR-02-2023-0061
Tan, A.-, & Zarefar, A.-. (2022). Corporate Governance and Sustainability in Indonesia: The Moderating Role of Institutional Ownership. Jurnal Dinamika Akuntansi, 14(2), 98–109. https://doi.org/10.15294/jda.v14i2.37064
Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3). https://doi.org/10.1016/j.heliyon.2021.e06453
Wahyuningrum, I. F. S., Oktavilia, S., & Utami, S. (2022). The Effect of Company Characteristics and Gender Diversity on Disclosures Related to Sustainable Development Goals. Sustainability (Switzerland), 14(20), 1–13. https://doi.org/10.3390/su142013301
Widanengsih, E. W., & Yulianti, M. L. (2022). The Effect of Implementing Green Accounting and Environmental Perfomance on Return on Assets (ROA) in the Non-Cyclical Consumer Sector Listed on the Indonesian Stock Exchange. Journal of Accounting and Finance Management, 3(3), 135–144. https://doi.org/10.38035/jafm.v3i3.120
Wijayanti, R., & Setiawan, D. (2023). The role of the board of directors and the sharia supervisory board on sustainability reports. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100083. https://doi.org/10.1016/j.joitmc.2023.100083
Worl Meteorological Organization. (2024). State of the Global Climate 2024. In State of the Global Climate 2024 (Issue 1368). https://doi.org/10.18356/9789263113474
Yi, M., Ren, F., & Chen, Z. H. (2025). Institutional Cross-Ownership and Corporate Sustainability Performance: Empirical Evidence Based on United Nations SDGs Ratings. Sustainability (Switzerland), 17(10), 1–22. https://doi.org/10.3390/su17104461
Anifowose, M. (2025). Evidence of the impact of corporate governance on ESG disclosure in sub-Saharan Africa: the moderating role of ownership structure. International Journal of Disclosure and Governance, 0123456789. https://doi.org/10.1057/s41310-025-00294-3
Anyigbah, E., Kong, Y., Edziah, B. K., Ahoto, A. T., & Ahiaku, W. S. (2023). Board Characteristics and Corporate Sustainability Reporting: Evidence from Chinese Listed Companies. Sustainability (Switzerland), 15(4). https://doi.org/10.3390/su15043553
Beck, D. (2023). Stakeholder Theory for Sustainable Cities and Society: A Humanist and Environmental approach for integrating People, Institutions, and Environmental Ecosystems. Studia Ecologiae et Bioethicae. https://doi.org/10.21697/seb.2023.03
Blay, M. W., Hoeyi, P. K., Badu, E. A., & Jibril, A. B. (2024). Impact of Board Committee Characteristics on Social Sustainability Reporting in Sub-Saharan Africa: The Moderating Role of Institutional Ownership. Journal of Risk and Financial Management, 17(7). https://doi.org/10.3390/jrfm17070302
Collevecchio, F., Temperini, V., Barba-Sanchez, V., & Meseguer-Martinez, A. (2025). Sustainable Governance: Board Sustainability Experience and the Interplay with Board Age for Firm Sustainability. Journal of Business Ethics, 197(2), 371–389. https://doi.org/10.1007/s10551-024-05739-3
Dewi, I. A. S. P., & Ramantha, I. W. (2021). Good Corporate Governance, Ukuran Perusahaan, dan Sustainability Report dengan Kepemilikan Institusional Sebagai Pemoderasi. E-Jurnal Akuntansi, 31(6), 1451. https://doi.org/10.24843/eja.2021.v31.i06.p08
Faza, Q. N., Fitriani, R. A. N., & Rajib, R. K. (2024). Penegakan Hukum terhadap Kasus Pencemaran PT. Greenfields diBlitar Jawa Tengah. Jurnal Multidisiplin Ilmu Akademik, 1(3). https://doi.org/DOI: https://doi.org/10.61722/jmia.v1i3.1372
Freeman, R. E., Wicks, A. C., & Parmar, B. (2004). Stakeholder Theory and “The Corporate Objective Revisited.” Organization Science, 15(3), 364–369. https://doi.org/10.1287/orsc.1040.0066
Hamidah, & Arisukma, A. A. (2020). The influence of corporate governance on sustainability report management: The moderating role of audit committee. Polish Journal of Management Studies, 21(1), 146–157. https://doi.org/10.17512/pjms.2020.21.1.11
Jamil, A., Mohd Ghazali, N. A., & Puat Nelson, S. (2021). The influence of corporate governance structure on sustainability reporting in Malaysia. Social Responsibility Journal, 17(8), 1251–1278. https://doi.org/10.1108/SRJ-08-2020-0310
Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm : Managerial Behavior, Agency Cost and Ownership Structure. In Journal of Financial Economics (Vol. 3). Q North-Holland Publishing Company.
Juwita, N., & Honggowati, S. (2021). Corporate Board Diversity and Sustainability Reporting: Empirical Evidence from Indonesia Before and During COVID-19. Journal of Accounting and Investment, 23(1), 1–15. https://doi.org/10.18196/jai.v23i1.12767
Kalbuana, N., Kusiyah, K., Supriatiningsih, S., Budiharjo, R., Budyastuti, T., & Rusdiyanto, R. (2022). Effect of profitability, audit committee, company size, activity, and board of directors on sustainability. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2129354
Klettner, A. (2021). Stewardship Codes and the Role of Institutional Investors in Corporate Governance: An International Comparison and Typology. British Journal of Management, 32(4), 988–1006. https://doi.org/10.1111/1467-8551.12466
Kulsum, S. (2025). 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. International Journal of Social Discussion, 2(2), 92–109. https://doi.org/10.59613/ijsd.v2i2.10
Lewa, E. M., Gatimbu, K. K., & Kariuki, P. W. ombe. (2024). Board attributes and sustainability reporting of selected listed nonfinancial firms in anglophone Sub-Saharan African countries: A multinomial logistic regression. Heliyon, 10(9). https://doi.org/10.1016/j.heliyon.2024.e29824
Lin, P. T., Li, P., & Akbar, A. (2024). Examining the influence of institutional investors on the readability of environmental disclosure in
López‐Gamero, M. D., Molina‐Azorín, J. F., Pereira‐Moliner, J., & Pertusa‐Ortega, E. M. (2023). Agility, innovation, environmental management and competitiveness in the hotel industry. Corporate Social Responsibility and Environmental Management, 30(2), 548–562. https://doi.org/10.1002/csr.2373
Maryana, M., & Carolina, Y. (2021). The Impact of Firm Size, Leverage, Firm Age, Media Visibility and Profitability on Sustainability Report Disclosure. Jurnal Keuangan Dan Perbankan, 25(1). https://doi.org/10.26905/jkdp.v25i1.4941
Mujiani, S., Juardi, & Ainun Nadhifah. (2021). SUSTAINABILITY REPORT DISCLOSURE: A GOOD CORPORATE GOVERNANCE MECHANISM. RELEVAN : Jurnal Riset Akuntansi, 1(2), 60–72. https://doi.org/10.35814/relevan.v1i2.2256
Pandapotan, F. (2023). Role of institutional ownership in moderating profitability and board of directors on sustainability report disclosure. Asian Journal of Economics and Business Management, 2(2), 291–299. https://doi.org/10.53402/ajebm.v2i2.356
Sari, M. P., Dewi, S. R. K., Raharja, S., Dinanti, A., & Rizkyana, F. W. (2023). Good corporate governance as moderation on sustainability report disclosure. Journal of Governance and Regulation, 12(3), 16–24. https://doi.org/10.22495/jgrv12i3art2
Setiawan, R., Handiliastawan, I., & Jafar, R. (2020). Commissioner board characteristics, ownership concentration, and corporate performance. Jurnal Keuangan Dan Perbankan, 24(2). https://doi.org/10.26905/jkdp.v24i2.3827
Shinta, A. D., Deniswara, K., & Liu, V. T. (2023). The Effect of Audit Quality, Institutional Ownership, Profitability, and Firm Size on Sustainability Reporting Assurance of Companies Listed on SRI-KEHATI Index in 2019-2021. E3S Web of Conferences, 426. https://doi.org/10.1051/e3sconf/202342601038
Singh, A., & Chakraborty, M. (2021). Does CSR disclosure influence financial performance of firms? Evidence from an emerging economy. Sustainability Accounting, Management and Policy Journal, 12(4), 788–810. https://doi.org/10.1108/SAMPJ-02-2018-0042
Sjåfjell, B. (2018). Redefining agency theory to internalize environmental product externalities: A tentative proposal based on life cycle thinking. In Preventing Environmental Damage from Products: An Analysis of the Policy and Regulatory Framework in Europe (pp. 101–124). Cambridge University Press. https://doi.org/10.1017/9781108500128.005
Tajuddin, A. H., Akter, S., Mohd-Rashid, R., & Mehmood, W. (2023). The influence of board size and board independence on triple bottom line reporting. Arab Gulf Journal of Scientific Research. https://doi.org/10.1108/AGJSR-02-2023-0061
Tan, A.-, & Zarefar, A.-. (2022). Corporate Governance and Sustainability in Indonesia: The Moderating Role of Institutional Ownership. Jurnal Dinamika Akuntansi, 14(2), 98–109. https://doi.org/10.15294/jda.v14i2.37064
Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3). https://doi.org/10.1016/j.heliyon.2021.e06453
Wahyuningrum, I. F. S., Oktavilia, S., & Utami, S. (2022). The Effect of Company Characteristics and Gender Diversity on Disclosures Related to Sustainable Development Goals. Sustainability (Switzerland), 14(20), 1–13. https://doi.org/10.3390/su142013301
Widanengsih, E. W., & Yulianti, M. L. (2022). The Effect of Implementing Green Accounting and Environmental Perfomance on Return on Assets (ROA) in the Non-Cyclical Consumer Sector Listed on the Indonesian Stock Exchange. Journal of Accounting and Finance Management, 3(3), 135–144. https://doi.org/10.38035/jafm.v3i3.120
Wijayanti, R., & Setiawan, D. (2023). The role of the board of directors and the sharia supervisory board on sustainability reports. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100083. https://doi.org/10.1016/j.joitmc.2023.100083
Worl Meteorological Organization. (2024). State of the Global Climate 2024. In State of the Global Climate 2024 (Issue 1368). https://doi.org/10.18356/9789263113474
Yi, M., Ren, F., & Chen, Z. H. (2025). Institutional Cross-Ownership and Corporate Sustainability Performance: Empirical Evidence Based on United Nations SDGs Ratings. Sustainability (Switzerland), 17(10), 1–22. https://doi.org/10.3390/su17104461
Published
2025-10-16
How to Cite
Sabrina Gesila Finca, Agus Ismaya Hasanudin, & Nurhayati Soleha. (2025). Determinan Factors of Sustainability Report : The Moderating Role of Institutional Ownership. International Journal of Economics, Business and Innovation Research, 4(06), 239-258. https://doi.org/10.63922/ijebir.v4i06.2312
.png)
Contact Person +6282139474255
Email : ijebir@citakonsultindo.or.id / editor.ijebir@gmail.com
