State Ownership, Family Ownership, and Sustainability Report Quality: The Moderating Role of Board Effectiveness
Journal Title: GATR Accounting and Finance Review - Year 2017, Vol 2, Issue 2
Abstract
Objective - This research analyzes the effect of state ownership, family ownership, and the effectiveness of the board's moderating role on sustainability report quality of Indonesian companies. Methodology/Technique - Sustainability report quality is a factor analysis of percentage of disclosure quantity score with GRI G3 and G4 (content analysis), the natural logarithm of the number of pages, existence of opinion, and existence of an independent party assessment on GRI application check, independent party assessment. Board effectiveness is divided into three categories: independence, size, and competence. Findings - Using data of 123 companies listed on the Indonesian Stock Exchange between 2010 and 2014, it is found that state ownership, board effectiveness based on independence, and competence positively affect sustainability report quality while family ownership and board effectiveness based on size do not affect sustainability report quality. For board effectiveness moderating role, board effectiveness based on independence and size strengthen state ownership effect on sustainability report quality. Meanwhile, board effectiveness does not weaken family ownership effect on sustainability report quality. Novelty - This research contributes to literature regarding the relationship between corporate governance and sustainability report quality, particularly the effectiveness of a board's moderating role to sustainability report quality, which is scarcely researched.
Authors and Affiliations
Astrid Rudyanto
Keywords
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