The Effects of Profitability, Leverage, and Corporate Governance on Sustainability Reporting in Manufacturing Companies in Indonesia
Abstract
This study aims to analyze the influence of profitability, leverage, and corporate governance on sustainability reporting among manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2021–2024. The primary rationale for this study stems from the discrepancy between environmental commitments stated in reports and actual on-the-ground practices, as well as the prevalence of greenwashing. The study population consists of 85 manufacturing companies, with a sample of 20 companies selected using purposive sampling. The analysis method employed is multiple linear regression using SPSS software. Partial test results indicate that profitability does not have a significant effect on sustainability reporting (Sig. 0.150 > 0.05). Similarly, leverage was found to have no significant effect on sustainability reporting (Sig. 0.365 > 0.05). Conversely, corporate governance was proven to have a positive and significant effect on sustainability reporting (Sig. 0.014 < 0.05). Simultaneously, this research model was not significant at the 95% confidence level, with a significance value of 0.052. The Adjusted R-Square value of 0.060 indicates that the independent variables can only explain 6% of the variation in sustainability reporting, while the remaining 94% is explained by variables outside the model.
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