Does Sustainability (Reporting and Three Bottom Lines) matter: The Facts from Energy Sector Companies Listed on The Indonesian Stock Exchange 2017-2021

Abstract

Investors and other stakeholders request more comprehensive information about the company's possibilities for long-term value creation and their broader social impact to comprehend long-term success and future creation opportunities better. This study aims to ascertain the impact of sustainability reporting, which includes economic, environmental, and social disclosures, on corporate performance as measured by the market value dimension using Tobin's Q. Purposive sampling was used in this study to collect secondary data from each company's annual reports and sustainability reports. In this study, the Ordinary Least Squares approach is employed. According to the findings, Social Disclosure greatly impacted firm performance, while Environmental Disclosure and Sustainability Reporting had no significant positive impact. Based on the result, it can be concluded that if the activities performed cannot be regarded as firm assets, investment in this disclosure instrument has not significantly increased the company's worth. However, Economic Disclosure had a considerable favourable impact.