CSR Performance, Firm’s Attributes, and Sustainability Reporting

Abstract

This study aims to empirically identify the drivers of sustainability reporting (SR) in Indonesia. Relying on the legitimacy theory, we conjecture that CSR performance and the firm’s attributes are associated with SR. Using the sample from the Indonesian Capital Market (IDX), we run logit regression analysis. Logit regression is performed by employing quarterly data from 37 publicly listed companies, that voluntarily published sustainability reports from the first quarter (Q1) of 2012 to the last quarter (Q4) of 2016 fiscal year. The obtained results show that CSR performance is positively associated with SR. Whilst, firm’s attributes with different surrogate indicators indicate mixed results. Overall, this study provides empirical evidence, in which CSR performance and the firm’s attributes play a pivotal role as the drivers of sustainability reporting.