The Impacts of Stakeholder Pressure, Profitability, and Audit Committee on the Quality of Sustainability Reports
Abstract
Main Purpose: This research aims to analyze the influence of stakeholder pressure (employees and consumers) and profitability on the quality of sustainability reports with the audit committee as a moderating variable. Method: The research population is LQ45 index companies on the Indonesia Stock Exchange (IDX). The sampling technique uses purposive sampling which results in 39 companies with a unit of analysis of 125 companies. The data processing method uses Moderated Regression Analysis (MRA) with the help of Eviews software. Findings: The findings show that stakeholder pressure (employees and consumers) has a significant positive effect on the quality of sustainability reports, while profitability does not affect the quality of sustainability reports. Next, the audit committee weakens the impact of employee pressure on the quality of sustainability reports. As for consumer pressure and profitability, the audit committee variable cannot moderate the effect of related variables on the quality of sustainability reports. Novelty: This research uses the audit committee variable as a moderating variable, which is still rarely found in similar studies, and is expected to provide broader benefits.
Keywords
References
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DOI: https://doi.org/10.17509/jaset.v17i1.75264
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