Article Sidebar

Submitted
February 10, 2026
Accepted
September 15, 2026
Published
October 2, 2026
Download
pdf
Statistic
Read Counter : 58 Download : 58

Downloads

Download data is not yet available.

Main Article Content

Abstract

This study examines the dimension-specific associations between sustainability report (SR) disclosures and firm value within the Indonesian banking sector. Disaggregating GRI-based disclosure indicators into economic, environmental, and social dimensions, the analysis employs a fixed-effects panel specification on a balanced sample of three continuously reporting banks over the 2010–2023 period (42 bank-year observations). Firm value is proxied by Tobin’s Q. Baseline estimates reveal a statistically significant positive association between social disclosure and Tobin’s Q, a negative association for economic disclosure, and no statistically significant relationship for environmental disclosure. These empirical variations demonstrate that financial markets evaluate categories of non-financial disclosures heterogeneously. However, given the restricted sample size, the findings reflect conditional relationships specific to early SR adopters rather than generalizable industry-wide effects. The study highlights the necessity of disaggregating sustainability metrics in emerging market research and provides nuanced implications for standard-setters and financial institutions.

Keywords

Sustainability Reporting Sustainability Disclosure Firm Value Tobin’s Q Indonesian Banking

Article Details

License
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Creative Commons License

Jurnal Ekonomi Pembangunan is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License..

How to Cite
Diana, C., Wahyudi, S. T., Pinjaman, S., & Lidyah, R. (2026). Sustainability Report Disclosures and Firm Value: Evidence from Indonesian Banks. Jurnal Ekonomi Pembangunan, 24(1), 11–26. https://doi.org/10.29259/jep.v24i1.23540
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Adthajak, P., Poonpool, N., & Bhongchirawattana, U. (2025). The mediating effect of sustainability disclosure on the impact of proactive tax planning on firm value: Empirical evidence from ESG100 index. Journal of Project Management, 10(4), 649–658. https://doi.org/10.5267/j.jpm.2025.8.005
  2. Agustia, D., Harymawan, I., & Permatasari, Y. (2022). Board diversity, sustainability report disclosure and firm value. Global Business Review, 23(6), 1520-1543. https://doi.org/10.1177/09721509221124125
  3. Alroud, S. F. (2025). Digital transformation as a moderator: a study of the impacts of sustainability reporting disclosure on financial reporting quality in the Jordanian banking sector. Economics, 13(2), 389–413. https://doi.org/10.2478/eoik-2025-0046
  4. Ammer, M. A., Aliedan, M. M., & Alyahya, M. A. (2020). Do corporate environmental sustainability practices influence firm value? The role of independent directors: Evidence from Saudi Arabia. Sustainability, 12(22), 9768. https://doi.org/10.3390/su12229768
  5. Anis, I., Gani, L., Fauzi, H., Hermawan, A. A., & Adhariani, D. (2023). The sustainability awareness of banking institutions in Indonesia, its implication on profitability by the mediating role of operational efficiency. Asian Journal of Accounting Research, 8(4), 356–372. https://doi.org/10.1108/AJAR-06-2022-0179
  6. Bachoo, K., Tan, R., & Wilson, M. (2013). Firm value and the quality of sustainability reporting in Australia. Australian Accounting Review, 23(1), 67-87. https://doi.org/10.1111/j.1835-2561.2012.00187.x
  7. Baltagi, B. H. (2021). Econometric analysis of panel data. Springer International Publishing. https://doi.org/10.1007/978-3-030-53953-5
  8. Cantero-Saiz, M., Polizzi, S., & Scannella, E. (2024). ESG and asset quality in the banking industry: The moderating role of financial performance. Research in International Business and Finance, 69, 102221. https://doi.org/10.1016/j.ribaf.2024.102221
  9. Carolina, Y., Maryana, M., & Yunianti, N. (2020, September). Sustainability Report Disclosure and Corporate Financial Performance (Evidence from Indonesia). In Proceedings of the 2020 12th International Conference on Information Management and Engineering, 50-52. https://doi.org/10.1145/3430279.3430288
  10. D'Costa, C. R., Prabhudesai, R., Naik, S. P., Prasad, C. V., & Mishra, M. (2025). When bigger is not always better: exploring the size-dependent nature of the sustainability reporting-firm valuation relationship. International Journal of Productivity and Performance Management, 74(6), 1953-1970. https://doi.org/10.1108/IJPPM-03-2024-0151
  11. Dewi, L. G. K., Wiagustini, N. L. P., Rahyuda, H., & Sudana, I. P. (2023). Sustainability context and industry profile on the effect of gender diversity on firm value. Uncertain Supply Chain Management, 11(3), 1343-1358. https://doi.org/10.5267/j.uscm.2023.3.013
  12. Friske, W., Hoelscher, S. A., & Nikolov, A. N. (2023). The impact of voluntary sustainability reporting on firm value: Insights from signaling theory. Journal of the Academy of Marketing Science, 51(2), 372-392. https://doi.org/10.1007/s11747-022-00879-2
  13. Haddad, H., Albawab, A., & Al-Qudah, L. (2023). The effect of intellectual and social capital on banks profitability. Journal of Governance and Regulation, 12(1, special issue), 359–366. https://doi.org/10.22495/jgrv12i1siart14
  14. Haris, M., Yao, H., Tariq, G., Javaid, H. M., & Ain, Q. U. (2019). Corporate Governance, Political Connections, and Bank Performance. International Journal of Financial Studies, 7(4), 62. https://doi.org/10.3390/ijfs7040062
  15. Harymawan, I., Nasih, M., Salsabilla, A., & Putra, F. K. G. (2020). External assurance on sustainability report disclosure and firm value: Evidence from Indonesia and Malaysia. Entrepreneurship and Sustainability Issues, 7(3), 1500-1512. https://doi.org/10.9770/jesi.2020.7.3(5)
  16. Hermawan, A., & Gunardi, A. (2019). Motivation for disclosure of corporate social responsibility: evidence from banking industry in Indonesia. Entrepreneurship and Sustainability Issues, 6(3), 1297–1306. https://doi.org/10.9770/jesi.2019.6.3(17)
  17. Karima, T., Hidayat, K., Nuzula, N. F., & Damayanti, C. R. (2025). The effect of risk on capital structure, profitability, and firm value with sustainability report as a moderating variable. International Journal of Sustainable Development, 18(12), 475–488.
  18. Linawati, N., Moeljadi, M., Djumahir, & Aisjah, S. (2022). The effect of profitability and bank size on firm value sustainability: The mediating role of capital structure. Investment Management and Financial Innovations, 19(2), 331–343. https://doi.org/10.21511/imfi.19(2).2022.29
  19. Loh, L., Thomas, T., & Wang, Y. (2017). Sustainability reporting and firm value: evidence from Singapore-listed companies. Sustainability, 9(11), 2112. https://doi.org/10.3390/su9112112
  20. Macini, N., Fernandes Rodrigues Alves, M., Oranges Cezarino, L., Bartocci Liboni, L., & Cristina Ferreira Caldana, A. (2022). Beyond money and reputation: sustainable HRM in Brazilian banks. Employee Relations: The International Journal, 44(3), 702–728. https://doi.org/10.1108/ER-12-2018-0331
  21. Memon, M. A., Thurasamy, R., Ting, H., & Cheah, J.-H. (2024). Purposive sampling: a review and guidelines for quantitative research. Journal of Applied Structural Equation Modeling, 9(1), 1–23. https://doi.org/10.47263/JASEM.9(1)01
  22. Nguyen, H. C., & Duong, H. K. (2026). The impact of sustainability reporting on firm value, financial performance, and Risk: An empirical study of Vietnam’s listed companies: HC Nguyen and HK Duong. Journal of Management and Governance, 30(2), 675-718. https://doi.org/10.1007/s10997-025-09746-y
  23. Nurlatifah, S., Widyastuti, T., & Ahmar, N. (2025). Nexus of ESG disclosure, sustainability performance and financial performance on firm value: the role of corporate reputation and sustainability reporting quality. Financial and credit activity problems of theory and practice, 3(62), 589–602. https://doi.org/10.55643/fcaptp.3.62.2025.4704
  24. Onyshchenko, S., Yehorycheva, S., Karpenko, Y., & Vovchenko, O. (2025). Reporting on the sustainable development of Ukrainian banks: Current state, challenges and prospects. Economics of Development, 24(1), 84–95. https://doi.org/10.63341/econ/1.2025.84
  25. Rahman, M. H., Rahman, J., Tanchangya, T., & Esquivias, M. A. (2023). Green banking initiatives and sustainability: A comparative analysis between Bangladesh and India. Research in Globalization, 7, 100184. https://doi.org/10.1016/j.resglo.2023.100184
  26. Rudyanto, A., & Pirzada, K. (2021). The role of sustainability reporting in shareholder perception of tax avoidance. Social Responsibility Journal, 17(5), 669-685. https://doi.org/10.1108/SRJ-01-2020-0022
  27. Sani, N. F. A., Muda, R., Arshad, R., & Nair, R. (2020). The influence of environmental, social, governance factors and firm performance on the sustainable reporting of Malaysian companies. International Journal of Economics and Business Research, 20(4), 407-424. https://doi.org/10.1504/IJEBR.2020.111100
  28. Thompson, E. K., Ashimwe, O., Buertey, S., & Kim, S. Y. (2022). The value relevance of sustainability reporting: does assurance and the type of assurer matter?. Sustainability Accounting, Management and Policy Journal, 13(4), 858-877. https://doi.org/10.1108/SAMPJ-08-2021-0329
  29. Wati, E., Itan, I., & Rosana, J. (2026). Green innovation, sustainability disclosure, and firm value: evidence from Indonesia. Journal of Global Business & Technology, 22(2), 1–16.
  30. Yadav, S., & Hooda, S. K. (2024). Firm value and financial performance: impact of sustainability disclosure in the aviation industry. Review of Pacific Basin Financial Markets and Policies, 27(02), 2450014. https://doi.org/10.1142/S0219091524500140
  31. Zarefar, A., Agustia, D., & Soewarno, N. (2022). Bridging the gap between sustainability disclosure and firm performance in Indonesian firms: The moderating effect of the family firm. Sustainability, 14(19), 12022. https://doi.org/10.3390/su141912022
  32. Zheng, L., Mirza, N., Umar, M., & Su, C.-W. (2025). Sustainable lending to European SMEs: Implications for bank performance. International Review of Economics & Finance, 102, 104283. https://doi.org/10.1016/j.iref.2025.104283

Similar Articles

<< < 1 2 3 > >> 

You may also start an advanced similarity search for this article.