Mellisa Indah Pratiwi, Dewi Sriani

Stakeholder Pressure And Sustainability Report Quality

Introduction

Stakeholder pressure and sustainability report quality. Investigates how environmental, consumer, and media pressures affect sustainability report quality in Indonesian IDX80 companies, moderated by firm size.

Abstract

This research aims to investigate the effect of stakeholder pressure on the sustainability reports quality for Indonesian companies listed in the IDX80, with company size as a moderating variable. The study employs a quantitative approach, utilizing secondary data from annual reports and sustainability reports. The sampling technique used is purposive sampling, resulting in a sample size of 147. The research adopts a multiple linear regression and Moderated Regression Analysis using SPSS 2.5.0 software. The results indicate that environmental, consumer, and media pressures positively affect the sustainability report quality, while employee and shareholder pressures do not affect the quality of sustainability reports. Firm size strengthens the impact of consumer pressure on the sustainability report quality; however, firm size weakens the effect of employee and media pressures on the sustainability report quality. Additionally, firm size does not moderate the effect of environmental pressure and shareholder pressure on the quality of sustainability reports. This study contributes empirical evidence regarding the impact of stakeholder pressures on the sustainability report quality with also investigating the role of company size as moderating variable. Through this research, it is expected that companies in Indonesia will become more aware of the importance of issuing high-quality sustainability reports for the long-term sustainability of their operations

Review

This study undertakes a pertinent investigation into the drivers of sustainability report quality, a topic of growing importance for corporate transparency and accountability. Focusing on Indonesian companies listed in the IDX80, the research effectively aims to dissect the influence of various stakeholder pressures – specifically environmental, consumer, media, employee, and shareholder – on the quality of these reports. A key strength of the research design is the inclusion of company size as a moderating variable, providing a more nuanced understanding of these relationships within a significant emerging market context. The quantitative approach, employing established statistical methods like multiple linear regression and Moderated Regression Analysis on a substantial sample size, lends credibility to its methodological rigor. The findings offer valuable insights into the differential impact of stakeholder groups. The positive effects of environmental, consumer, and media pressures on sustainability report quality are intuitive and reinforce existing literature on external visibility and public scrutiny driving corporate disclosure. More interestingly, the study reveals that employee and shareholder pressures do not significantly affect report quality, suggesting potential contextual specificities within Indonesian firms regarding internal stakeholder influence on reporting standards. The moderating role of firm size further enriches these insights: strengthening the impact of consumer pressure, which aligns with larger firms facing greater public scrutiny, while weakening the effects of employee and media pressures. This latter finding is particularly intriguing, as it suggests that larger firms might either have more robust internal systems that buffer against direct employee influence on report quality, or they are better equipped to manage or dilute media pressures compared to smaller counterparts. Overall, this research contributes significantly to the body of literature on sustainability reporting, particularly through its empirical evidence from Indonesia and the comprehensive analysis of diverse stakeholder pressures coupled with the moderating effect of firm size. The findings provide actionable intelligence for Indonesian companies, highlighting which external pressures are most effective in driving higher quality sustainability reports. For future research, it would be beneficial to delve deeper into the reasons behind the lack of effect from employee and shareholder pressures, perhaps through qualitative approaches or by exploring alternative proxies for their influence. Additionally, exploring the specific mechanisms through which firm size weakens certain pressures could offer further theoretical and practical contributions.

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