Governance Attributes and Political Connections in Sustainability Reporting and Financial Performance
DOI:
https://doi.org/10.29080/jai.v12i2.2620Keywords:
Audit Commite Financial Expertise, Ownership Institutional, Political Connection, Sustainability Reporting, Financial PerformanceAbstract
Abstract
Purpose: This study examines the effects of Audit Committee Financial Expertise, Institutional Ownership, and Political Connections on Sustainability Reporting and Financial Performance. It addresses the limited understanding of whether governance mechanisms operate consistently across sustainability disclosure and financial outcomes in listed companies.
Methodology/approach: This study uses a quantitative approach with 90 firm-year observations from 18 companies listed on the Indonesia Stock Exchange during 2019–2023. The sample was selected through purposive sampling. Sustainability Reporting is measured using the Bloomberg ESG Disclosure Score, while Financial Performance is proxied by return on assets (ROA). The proposed relationships are tested using multiple linear regression analysis with SPSS.
Findings: Audit Committee Financial Expertise positively affects Sustainability Reporting, while Institutional Ownership has no significant effect and Political Connections negatively affect it. For Financial Performance, only Institutional Ownership has a positive and significant effect.
Practical implications: Companies should align governance mechanisms with specific organizational objectives. Strengthening audit committee financial expertise may support sustainability disclosure, while institutional ownership may contribute to financial monitoring and performance. Political connections should be managed transparently.improve sustainability disclosure or financial performance.
Originality/value: This study contributes to the corporate governance literature by simultaneously examining the effects of three governance mechanisms on sustainability disclosure and financial performance in Indonesian listed companies, showing that their effects differ across performance dimensions
Downloads
References
Adriyanti, A., Latief, F., & Bahasoan, S. (2023). PENGARUH GAYA KEPEMIMPINAN DAN MOTIVASI KERJA TERHADAP KINERJA KARYAWAN PADA BANK SULSELBAR CABANG JENEPONTO. Jurnal Malomo : Manajemen Dan Akuntansi, 1(1), 1–13.
Al-ahdal, W. M., & Hashim, H. A. (2021). Impact of audit committee characteristics and external audit quality on firm performance: evidence from India. Corporate Governance, 22(2), 424–445. https://doi.org/10.1108/CG-09-2020-0420
Alomran, A. A., & Alsahali, K. F. (2023). The Role of Long-Term Institutional Ownership in Sustainability Report Assurance: Global Evidence. Sustainability (Switzerland), 15(4). https://doi.org/10.3390/su15043492
Alsayegh, M. F., Rahman, R. A., & Homayoun, S. (2020). Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability (Switzerland), 12(9). https://doi.org/10.3390/su12093910
Altin, M. (2024). Audit committee characteristics and firm performance: a cross-country meta-analysis. Management Decision, 62(5), 1687–1719. https://doi.org/10.1108/MD-04-2023-0511
Aman, Z., & Jaafar, S. (2020). Institutional Ownership and Corporate Sustainability Reporting in Malaysia. 7th International Conference on Management and Muamalah, 297–305.
Aprianti, S., Susetyo, D., Meutia, I., & Fuadah, L. L. (2022). Audit Committee Characteristics and Sustainability Reporting in Indonesia. https://doi.org/10.2991/aebmr.k.220304.006
Aulia Indy, L., Uzliawati, L., & Mulyasari, W. (2022). The Effect of Managerial Ownership and Institutional Ownership on Sustainability Reporting and Their Impact on Earning Management. Journal of Applied Business, Taxation and Economics Research, 1(3), 243–256. https://doi.org/10.54408/jabter.v1i3.48
Farida, F., Murniati, M., & Sigid, S. (2020). DETERMINAN PENERAPAN PEDOMAN AKUNTANSI PESANTREN PADA PESANTREN MITRA KERJA BANK INDONESIA. JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi), 6(2), inpress. https://doi.org/10.34204/jiafe.v6i2.2613
Hadiputra, A. A., & Windijarto. (2023). Political Connection, Financial Distress and Cost of Debt: Empirical Evidence from Emerging Country. Jurnal Manajemen Teori Dan Terapan | Journal of Theory and Applied Management, 16(2), 368–380. https://doi.org/10.20473/jmtt.v16i2.44853
Handoko, B. L., & Ramadhani, K. A. (2017). Pengaruh karakteristik komite audit, keahlian keuangan dan ukuran perusahaan terhadap kemungkinan kecurangan laporan keuangan. DeReMa Jurnal Manajemen, 12(1), 86–113.
Hartati, N. (2020). Pengaruh Dewan Komisaris, Komite Audit dan Kepemilikan Institusional Terhadap Kinerja Keuangan Perusahaan. EKOMABIS: Jurnal Ekonomi Manajemen Bisnis, 1(02), 175–184. https://doi.org/10.37366/ekomabis.v1i02.72
Harymawan, I., Minanurohman, A., Nasih, M., Shafie, R., & Ismail, I. (2022). Chief financial officer’s educational background from reputable universities and financial reporting quality. Journal of Accounting & Organizational Change, 19(4), 566–587. https://doi.org/10.1108/JAOC-12-2021-0195
Hassanein, A., Bani-Mustafa, A., & Nimer, K. (2024). A country’s culture and reporting of sustainability practices in energy industries: does a corporate sustainability committee matter? Humanities and Social Sciences Communications, 11(1). https://doi.org/10.1057/s41599-024-03536-x
Holly, A., & Lukman, L. (2021). PENGARUH KEPEMILIKAN MANAJERIAL, KEPEMILIKAN INSTITUSIONAL, DAN MANAJEMEN LABA TERHADAP KINERJA KEUANGAN. AJAR, 4(01), 64–86. https://doi.org/10.35129/ajar.v4i01.159
Indonesia, P. (2023). Tren dan Arah Sustainability Report Indonesia di Masa Mendatang.
Kompas.com. (2024, March 9). Terapkan Praktik CGC, Antam Raih Penghargaan di Indonesia Excellence Good Corporate Governance Awards 2024. Kompas. https://nasional.kompas.com/read/2024/03/09/11414111/terapkan-praktik-cgc-antam-raih-penghargaan-di-indonesia-excellence-good
Madani, N. K. N., & Gayatri, G. (2021). Profitabilitas, ukuran perusahaan, umur perusahaan, kepemilikan institusional dan pengungkapan sustainability report. E-Jurnal Akuntansi, 31(4), 822–835.
Maina, L. K., & Oluoch, O. (2018). EFFECT OF CORPORATE AUDIT COMMITTEE CHARACTERISTICS ON FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN KENYA. International Journal of Social Sciences and Information Technology, 4(10). http://www.ijssit.com
Maotama, N. S., & Astika, I. B. P. (2020). Pengaruh profitabilitas, ukuran perusahaan, dan kepemilikan manajerial terhadap praktik perataan laba (Income Smoothing). E-Jurnal Akuntansi, 30(7), 1767.
Maryanti, E., & Dianawati, W. (2024). Ownership structure and performance: how does business environmental uncertainty matter? Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2396540
Moniaga, F. (2013). Struktur modal, profitabilitas dan struktur biaya terhadap nilai perusahaan industri keramik, porcelen dan kaca periode 2007-2011. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 1(4).
Muliawati, A. R., & Hariyati, H. (2021). Pengaruh Koneksi Politik Dan Media Exposure Terhadap Pengungkapan Tanggung Jawab Sosial. Jurnal Akuntansi Dan Ekonomika, 11(1), 72–81. https://doi.org/10.37859/jae.v11i1.2509
Nariswari, M. N., Wijayanto, R., & Ariani, M. (2025). Pengaruh Kepemilikan Institusional, Struktur Modal, dan Pengungkapan Sustainability Report Terhadap Nilai Perusahaan. Economic Reviews Journal, 4(2). https://doi.org/10.56709/mrj.v4i2.673
Narullia, D., Maha Putri, D., Teguh Prastyaji, Y., & Fadhilah, N. (2024). Connection Between the Audit Characteristics and Corporate ESG Performance in Indonesia. JOURNAL OF ECONOMICS, FINANCE AND MANAGEMENT STUDIES, 07(01). https://doi.org/10.47191/jefms/v7-i1-01
Ningsih, D. A. (2021). Kepemilikan institusional, leverage dan ukuran perusahaan terhadap kinerja keuangan. Jurnal Akuntansi AKUNESA, 9(2).
Nuraina, E., & Soewarno, N. (2022). INSTITUTIONAL INVESTORS, POLITICAL CONNECTION, AND SUSTAINABILITY REPORTING QUALITY: EMPIRICAL EVIDENCE FROM INDONESIA. Assets: Jurnal Akuntansi Dan Pendidikan, 11(2), 150–159. https://doi.org/10.25273/jap.v11i2.13102
Oduor, G. W., Adoyo, P., & Mule, R. K. (2022). Effect of Audit Committee Characteristics on the Financial Performance of Deposit Taking SACCOs in Kenya. The International Journal of Business & Management, 10(1). https://doi.org/10.24940/theijbm/2022/v10/i1/BM2201-013
Oncioiu, I., Petrescu, A. G., Bîlcan, F. R., Petrescu, M., Popescu, D. M., & Anghel, E. (2020). Corporate sustainability reporting and financial performance. Sustainability (Switzerland), 12(10). https://doi.org/10.3390/su12104297
Partiwi, R., & Herawati, H. (2022). PENGARUH KEPEMILIKAN INSTITUSIONAL, LEVERAGE DAN UKURAN PERUSAHAAN TERHADAP KINERJA PERUSAHAAN. JURNAL KAJIAN AKUNTANSI DAN AUDITING, 17(1). www.idx.co.id.
Pratiwi, D. (2024). Pengaruh Koneksi Politik dan Corporate Governance terhadap Kinerja Keuangan Perusahaan. Jurnal Akuntansi AKUNESA, 12(2). https://doi.org/10.26740/akunesa
Putranto, P., Maulidhika, I., & Budhy Scorita, K. (2022). Dampak Good Corporate Governance dan Profitabilitas terhadap Nilai Perusahaan. Daerah Khusus Ibukota Jakarta, 7(1), 61–74.
Rahmat, K. (2022). Pengaruh Kinerja Keuangan, Implementasi Good Corporate Governance dan Struktur Kepemilikan Terhadap Pengungkapan Sustainability Report. Accounthink : Journal of Accounting and Finance, 7(2). https://doi.org/10.35706/acc.v7i2.7223
Rahmawati, U., Ardiatus Subekti, G., Prasaja, M., Cahyanindyah, P., & Fitri Komariyah, E. (2022). PENGARUH KONEKSI POLITIK TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN MANUFAKTUR DI INDONESIA. JURNAL AKUNTANSI DAN EKONOMI BISNIS, 11(2), 109.
Roviqoh, D. I., & Khafid, M. (2021). Profitabilitas dalam memediasi pengaruh kepemilikan institusional, komite audit, dan ukuran perusahaan terhadap pengungkapan sustainability report. Business and Economic Analysis Journal, 1(1), 14–26.
Sari, F. W. (2021). Pengaruh Komite Audit terhadap Persistensi Laba. In ACE│Accounting Research Journal (Vol. 1, Number 1). https://journal.feb.unipa.ac.id/index.php/ace
Sastie, N. A., & Sucahyati, D. (2025). Literatur Review: Pengaruh Koneksi Politik Terhadap Kinerja Perusahaan. Prosiding Seminar Nasional Teknologi Komputer Dan Sains, 3(1), 230–233.
Sirait, S. (2021). Pengaruh Koneksi Politik dan Tarif Efektif Pajak terhadap Kinerja Ke uangan dengan Pergerakan Harga Saham sebagai Pemoderasi. Media Akuntansi Perpajakan, 6(1), 48–53. http://journal.uta45jakarta.ac.id/index.php/MAP48
Sonny Nugroho, Denny Siregar, Didin Sjarifudin, & Muhendra, R. (2022). Analisis dan pengembangan strategi bisnis menggunakan metode value chain (Studi Kasus: PD. XYZ). JENIUS : Jurnal Terapan Teknik Industri, 3(2), 114–122. https://doi.org/10.37373/jenius.v3i2.321
Sumiati, A., Astuti, R., & Prihartono, W. (2025). Journal of Artificial Intelligence and Engineering Applications Eligibility Analysis of Non-Cash Food Assistance Recipients in Rajadesa Village Using the K-Means Clustering Method (Vol. 4, Number 3). https://ioinformatic.org/
Sutawan, M. D., & Sisdyani, E. A. (2022). Koneksi Politik, Kepemilikan Pemerintah dan Pengungkapan Sustainability Reporting. E-Jurnal Akuntansi, 32(8), 2047. https://doi.org/10.24843/EJA.2022.v32.i08.p07
Tapang, A. T. (2023). AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL PERFORMANCE OF MANUFACTURING COMPANIES IN CAMEROON. International Journal of Advanced Research, 11(09), 905–911. https://doi.org/10.21474/IJAR01/17601
Tarmizi, N. F. A., & Brahmana, R. K. (2022). Environmental performance, political connection, and financial performance: evidence from global oil and gas companies. Environmental Science and Pollution Research, 30(4), 11081–11098. https://doi.org/10.1007/s11356-022-22881-5
Utami Eryadi, V., Wahyudi, I., & Jumaili, S. (2021). PENGARUH KEPEMILIKAN INSTITUSIONAL, KEPEMILIKAN MAYORITAS, KEPEMILIKAN PEMERINTAH, DAN PROFITABILITAS TERHADAP SUSTAINABILITY REPORTING ASSURANCE. Conference on Economic and Business Innovation, (1).
Wallad, J. R., & Darniaty, W. A. (2023). PENGARUH KONEKSI POLITIK, KEPEMILIKAN PEMERINTAH, PROFITABILITAS, DAN LEVERAGE TERHADAP KUALITAS LAPORAN KEBERLANJUTAN PADA BUMN INDONESIA. Journal of Accounting, Management and Islamic Economics, 1(1), 23–38. https://doi.org/10.35384/jamie.v1i1.410
Waluyo, D. (2024, July 22). 97% Perusahaan di Bursa Lakukan Pelaporan Berkelanjutan. Katadata. https://katadata.co.id/ekonomi-hijau/investasi-hijau/669e3732b06b1/97-perusahaan-di-bursa-lakukan-pelaporan-berkelanjutan
Wardhani, Y. A., & Suwarno, A. E. (2021). PENGARUH KEPEMILIKANMANAJERIAL, KEPEMILIKAN INSTITUSIONAL, STRUKTURMODAL DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN PERUSAHAAN. E-Prosiding Seminar Nasional Manajemen Dan Akuntansi STIE Semarang, 2(1).
Yunan, N., Anwar, K., & Kunci, K. (2021). PENGARUH KINERJA KEUANGAN, KARAKTERISTIK PERUSAHAAN DAN CORPORATE GOVERNANCE TERHADAP PENGUNGKAPAN SUSTAINABILITY REPORT. Fair Value Jurnal Ilmiah Akuntansi Dan Keuangan, 4(1).
Zaman, R., Farooq, M. B., Khalid, F., & Mahmood, Z. (2021). Examining the extent of and determinants for sustainability assurance quality: The role of audit committees. Business Strategy and the Environment, 30(7), 2887–2906. https://doi.org/10.1002/bse.2777
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Dia Damayanti, Eny Maryanti, Sigit Hermawan, Sarwenda Biduri
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
