Bi-directional in sustainability reporting and profitability: A study in Indonesian banks and non-banks

Authors

  • Tri Gunarsih Department of Management, Faculty of Business, Psychology and Communication, Universitas Teknologi Yogyakarta, Siliwangi Street, North Ring Road, Sleman, 55285
  • Setiyono Setiyono Department of Management, Faculty of Business, Psychology and Communication, Universitas Teknologi Yogyakarta, Siliwangi Street, North Ring Road, Sleman, 55285
  • Fran Sayekti Department of Accounting, Faculty of Business, Psychology and Communication, Universitas Teknologi Yogyakarta, Siliwangi Street, North Ring Road, Sleman, 55285
  • Tamas Novak Budapest Business School, H-1051 Budapest, Marko Street 29-31

DOI:

https://doi.org/10.26905/jkdp.v24i1.3588

Keywords:

Profitability, Reserve causality, Sustainability reporting

Abstract

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.

JEL Classification: G21, G30

 

How to Cite:

Gunarsih, T., Setiyono, Sayekti, F., & Novak, T. (2020). Bi-directional insustainability reporting and profitability: A study in Indonesian banks and non-banks. Jurnal Keuangan dan Perbankan, 24(1), 20-29.

DOI: https://doi.org/10.26905/jkdp.v24i1.3588

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Published

2020-01-28

Issue

Vol. 24 No. 1 (2020): January 2020

Section

FINANCE AND BANKING

License

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