The Impact of Sustainability Reports toward the Firm Value

Hadri Mulya, Herbayu Prabowo
European Research Studies Journal, Volume XXI, Issue 4, 637-647, 2018
DOI: 10.35808/ersj/1150


The main aim of this study is to identify the impact of sustainability report of the economy (EKO), labor (KET), and human rights (HAM), toward the firm value (NP). The first hypothesis proposed was that economic context had a positive effect to firm value; the second hypothesis is that labor had a positive effect to firm value, and the last hypothesis is that human rights have a positive effect to firm value. The target group of this study has included listed companies in the Indonesia Stock Exchange in the period 2014-2015 and data sources from the financial statements and annual reports in the same period. The sample method used is a purposive sampling method based on the data completeness provided while 74 independent samples are obtained. The hypotheses are tested using multiple regression methodology. The result shows that simultaneously, the economy, labor, and human rights give a significant impact toward the firm value, labor and human rights categories don't give a significant impact toward the firm value.

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