Sustainability Reporting and Mining Industries^ Performance: Indonesia Context
Pipin Kurnia- Dian Agustia-Noorlailie Soewarno- Ardianto

Airlangga University

Abstract

Purpose: This study investigates the relationship of standalone SR (economic, environmental, and social) disclosures to market/firm performance in mining companies for the 2016-2022 period in Indonesia as a developing country.
Design/methodology/approach: The study is panel data of 30 mining companies listed in IDX from 2016 to 2022 and 210 observations. SR disclosures use the GRI index by conducting content analysis in the annual and sustainability of mining companies. The tobinsq, ROE and control variables uses the OSIRIS dataset.
Finding: The findings of this research demonstrate that the implementation of stand-alone SR, encompassing economic, environmental, and social aspects, has a significant impact on market performance. Similarly, the disclosure of SR^s standalone economic and environtment aspect, has a significant positive effect on ROE. On the contrary, the social dimension does not effect to ROE.
Research limitations/implications: This study has limitations, such as the fact that content analysis for SR is only performed as far as the quantity of SR disclosures does not necessarily encourage other public companies to disclose sustainability activities. Small enterprises must be investigated because many of them are motivated to disclose their sustainability efforts.
Practical implications: The results of this study provide evidence that a standalone SR disclosure can increase market/financial performance, which can be considered by the mining industry when deciding whether or not to prepare and disclose company sustainability activities in a standalone SR report rather than in the annual report.
Originality/value: According to the author^s knowledge, this is the first study to empirically examine the relationship between stand-alone SR (economic, environmental, and social) and market/firm performance which are included in developing countries.

Keywords: SR, economy, environment, social, Indonesia, emerging market, mining industries

Topic: Sustainability accounting