Factors Influencing the Level of Sustainability Report Disclosure: A Case of Construction Companies Listed on Indonesia Stock Exchange

Abstract

Aims: This study was conducted to examine the factors influencing sustainability report disclosure. The independent variables were profitability, intellectual capital, leverage, company activities, company size, audit committee, and board of directors. The dependent variable, sustainability report disclosure, was measured based on environmental, social, and economic topics using the Global Reporting Initiative (GRI) standards. Methodology: This study was quantitative, using a purposive sampling method based on predetermined criteria. The sample used in this study was 14 construction companies listed on the Indonesia Stock Exchange. Data was collected over a four-year period, from 2021 to 2024, resulting in a total of 56 data points to be processed. Results: The goodness of fit test (F test) showed that all independent variables influenced sustainability report disclosure. However, a t-test indicated that intellectual capital and leverage significantly influenced sustainability report disclosure. Meanwhile, profitability, company size, company activities, audit committee, and board of directors did not significantly influence sustainability report disclosure. The findings of this study emphasize that external factors or other variables that were not tested have a more dominant role in encouraging sustainability report disclosure, such as pressure from the community, company reputation, or encouragement from top management.