Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Bi-directional in sustainability reporting and profitability: A study in Indonesian banks and non-banks

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Bi-directional in sustainability reporting and profitability: A study in Indonesian banks and non-banks

Profitability; Reserve causality; Sustainability reporting

We investigate the sustainability reporting differences in banks and non-banks sample firms and investigates reserve causality between sustainability reporting and profitability. The independent-sample t-test implemented to analyze the differences. The results report evidence that there are differences in sustainability reporting between the banks and non-bank. The average score of the sustainability reporting index in banks is higher than non-bank. The multiple regressions implemented in reserve causality between sustainability reporting and profitability. The empirical evidence shows that there is a negative relationship between sustainability reporting and profitability. We suggest that sustainability is merely a cost. The bi-directional relationship emerges in the economic and social dimension of sustainability reporting index. This result indicates that sustainability reporting influences firm performance and vice versa.

Tri Gunarsih, Setiyono, Fran Sayekti, Tamas Novak

http://jurnal.unmer.ac.id/index.php/jkdp

Universitas Merdeka Malang

January 2020

Sri Wahyuni

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

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Jurnal Keuangan dan Perbankan Universitas Merdeka Malang