The Influence of Firm Size, Firm Value, and Firm Activity on Sustainability Report Disclosure Level
Keywords:
Firm Size, Firm Value, Firm Activity, Sustainability Report, Legitimacy TheoryAbstract
Introduction: This study analyzes how of company size, company value, and company activities relate to the extent of sustainability report disclosure in Indonesia’s energy sector. Sustainability reporting is an important element in creating corporate transparency and accountability, as well as a means of legitimacy to gain public trust.
Background Problems: The extent of sustainability report disclosure in the energy sector remains uneven for the 2021-2024 period, despite OJK regulations requiring periodic reporting. This study seeks to answer how internal company characteristics influence the level of transparency in sustainability reporting.
Novelty: This research’s novelty stems from its spesific focus on the energy sector for the 2021-2024 period and the integration of three internal factors that previously showed inconsistent results. This study reaffirms the relevance of legitimacy theory in explaining differences in transparency levels between companies.
Research Methods: This study employs a quantitative methods using a causal associative model. The population includes energy sector companies listed on the Indonesia Stock Exchange, from which 22 firms for the 2021-2024 period. The sampling method applied is purposive sampling and the data were analyzed using multiple linear regression with SPSS version 27.
Finding: The findings show that company size and activity have a significant positive association with sustainability report disclosure, while company value has a negative effect. This indicates that large and active companies tend to be more transparent in maintaining public legitimacy, while companies with high market value tend to be selective in their disclosures in order to maintain investor perception.
Conclusion: This study concludes that internal characteristics shape the extent to which firm in the energy sector communicate their sustainability information. These findings support legitimacy theory and highlight the importance of policies that strengthen consistency and sustainability reporting standards in the energy sector.
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