The Effect of Sustainability Report Disclosure on Banking Company Financial Performance in Indonesia Stock Exchange

ABSTRACT : This study aims to investigate the effect of sustainability report disclosure on the financial performance of banks listed in Indonesia Stock Exchange (IDX) during the period of 2013-2016. The study focused on the effect of economic dimension (EcDI), environmental dimension (EnDI), and social dimension (SoDI) disclosures on financial performance. The dimensions of sustainability report disclosure were measured through indicators that have been developed which are in accordance with Global Reporting Initiative (GRI) G4 Index and the financial performance measured through Return on Assets (ROA). The study results revealed that the disclosure of the economic and social dimensions had a statistically significant effect on ROA While the environmental dimensions did not affect the ROA. This means that the banks listed in Indonesia Stock Exchange (IDX) give more priority to the economic and social dimension disclosure, than to the environmental dimensions. KEYWORDS: Sustainability Report, GRI G4 Index, Bank, Financial Performance