The Effect of Sustainability Reporting Quality, Stock Return, Return on Asset, and BOPO on Earning Management Moderated by Net Interest Margin in Banking Companies Listed on The Indonesia Stock Exchange

Authors

  • Hendra Universitas Trisakti, Indonesia
  • Etty Murwaningsari Universitas Trisakti, Indonesia

DOI:

https://doi.org/10.5555/ijosmas.v5i1.392

Keywords:

earning management, sustainability reporting quality, stock return, return on asset, BOPO, net interest margin

Abstract

At present, companies that care about environmental, social, and governance (ESG) are not only companies that are directly related to the environment, such as mining companies, but other companies that are far from being related to the environment are also becoming increasingly concerned about the Environment, Social, and Governance. The sample consists of Indonesian banking companies publicly traded on the Indonesian stock exchange. The overall sample size is 36 organizations, drawn from data spanning the years 2015 to 2022, and examined using Eviews. The goal of this study is to examine the association between variables related to the quality of ongoing reporting and corporate performance in banking businesses listed on the IDX, which are moderated by the Net Interest Margin (NIM) to Earnings Management (EM). The study's findings indicate that SRQ has a negative effect on earnings management (EM), Stock Return (SR) has a negative effect on earnings management (EM), Return on Assets (ROA) has no effect on earnings management (EM), Cost of Operations to Income Operations (BOPO) has a negative effect on earnings management (EM), and the Net Interest Margin (NIM) moderates the effect of Sustainability Reporting Quality (SRQ), Stock Return (SR), Return on Assets (ROA), and earnings management (EM).

Downloads

Download data is not yet available.

References

Abdullah S. Karaman, Merve Kilic, Ali Uyar, (2018) "Sustainability reporting in the aviation industry: worldwide evidence", Sustainability Accounting, Management and Policy Journal, https:// doi.org/10.1108/SAMPJ-12-2017-0150

Adriana Rossi, Lara Tarquinio. 2017. An Analysis of Sustainability Report Assurance Statements. Evidence from Italian Listed Companies. Managerial Auditing Journal, Vol. 32 Issue: 6, doi: 10.1108/MAJ-07-2016-1408

Agnieszka Leszczynska, (2012),"Towards shareholders' value: an analysis of sustainability reports", Industrial Management & Data Systems, Vol. 112 Iss: 6 pp. 911 - 928

Akrum Helfaya, Mark Whittington, Chandana Alawattage, (2018) "Exploring the quality of corporate environmental reporting: Surveying preparers’ and users’ perceptions", Accounting, Auditing & Accountability Journal, https://doi.org/10.1108/AAAJ-04-2015-2023

Amber Bellringer Amanda Ball Russell Craig, (2011),"Reasons for sustainability reporting by New Zealand local governments", Sustainability Accounting, Management and Policy Journal, Vol. 2 Iss 1 pp. 126 – 138

Astrid Rudyanto, Sylvia Veronica Siregar, "The effect of stakeholder pressure and corporate governance on the quality of sustainability report", International Journal of Ethics and Systems, https://doi.org/10.1108/IJOES-05-2017-0071

Claire Gillet. 2011. A study of sustainability verification practices: the French case. www.emeraldinsight.com/1832-5912.htm

Claire Gillet-Monjarret. 2018. Assurance reports included in the CSR reports of French firms: a longitudinal study. Sustainability Accounting, Management and Policy Journal, Vol. 9 Issue: 5

Desi Adhariani , Elda du Toit.2020. Readability of sustainability reports: evidence from Indonesia. Journal of Accounting in Emerging Economies Emerald Publishing Limited 2042-1168

Dewi Fitriasari, Naoko Kawahara, (2018) "Japan investment and Indonesia sustainability reporting: an isomorphism perspective", Social Responsibility Journal, https://doi.org/10.1108/SRJ-04-2017-0062

Dinithi Dissanayake, Sanjaya Kuruppu, Wei Qian and Carol Tilt. 2020. Barriers for sustainability reporting: evidence from Indo-Pacific region. https://www.emerald.com/insight/2049-372X.htm

Dominik Dienes, Remmer Sassen, Jasmin Fischer, (2016) "What are the drivers of sustainability reporting? A systematic review", Sustainability Accounting, Management and Policy Journal, Vol. 7 Issue: 2, pp.154-189, https://doi.org/10.1108/SAMPJ-08-2014-0050

Dominique Diouf, Olivier Boiral, (2017) "The quality of sustainability reports and impression management: A stakeholder perspective", Accounting, Auditing & Accountability Journal, Vol. 30 Issue: 3, pp.643-667, https://doi.org/10.1108/AAAJ-04-2015-2044

Edmundo R. Lizarzaburu Luis Berggrun Kurt Burneo . "Corporate Governance Index in Emerging Markets: Peruvian Listed Companies # " In The Spread of Financial Sophistication through Emerging Markets Worldwide. Published online: 18 Jul 2016; 311-336.

Felix Beske, Ellen Haustein and Peter C. Lorson. 2020. Materiality analysis in sustainability and integrated reports. Sustainability Accounting, Management and Policy Journal Vol. 11 No. 1, 2020

Francesco Paolone, Alberto Sardi, Enrico Sorano and Alberto Ferraris. 2020. Integrated processing of sustainability accounting reports: a multi-utility company case study. https://www.emerald.com/insight/2049-372X.htm

Global Reporting Initiative. 2018. GRI Standard AA1000 AS. AccountAbility Standard

Habib Zaman Khan, Sudipta Bose, Abu Taher Mollik and Harun Harun. 2020. “Green washing” or “authentic effort”? An empirical investigation of the quality of sustainability reporting by banks. https://www.emerald.com/insight/0951-3574.htm

Janine Hogan Sumit Lodhia, (2011),"Sustainability reporting and reputation risk management: an Australian case study", International Journal of Accounting & Information Management, Vol. 19 Iss 3 pp. 267 – 287

Johannes Slacik and Dorothea Greiling. 2019. Compliance with materiality in G4-sustainability reports by electric utilities. https://www.emerald.com/insight/1750-6220.htm

Kerstin Kräusche, Stefanie Pilz, (2017) "Integrated sustainability reporting at HNE Eberswalde – a practice report", International Journal of Sustainability in Higher Education, https://doi.org/10.1108/ IJSHE-07-2016-0145

Kwame Oduro Amoako, Beverley R. Lord, Keith Dixon, (2017) "Sustainability reporting: Insights from the websites of five plants operated by Newmont Mining Corporation", Meditari Accountancy Research, Vol. 25 Issue: 2, doi: 10.1108/ MEDAR-02-2016-0020

Lopin Kuo, Hui-Cheng Yu, Bao-Guang Chang. 2015. The signals of green governance on mitigation of climate change – evidence from Chinese firms. International Journal of Climate Change Strategies and Management Vol. 7 No. 2, 2015

Manuel Castelo Branco Catarina Delgado Sónia Ferreira Gomes Teresa Cristina Pereira Eugénio , (2014),"Factors influencing the assurance of sustainability reports in the context of the economic crisis in Portugal", Managerial Auditing Journal, Vol. 29 Iss 3 pp. 237 - 252

Md. Habib-Uz-Zaman Khan Muhammad Azizul Islam Johra Kayeser Fatima Khadem Ahmed, (2011),"Corporate sustainability reporting of major commercial banks in line with GRI: Bangladesh evidence", Social Responsibility Journal, Vol. 7 Iss 3 pp. 347 – 362Priyanka Aggarwal, Ajay Kumar Singh, (2018) "CSR and sustainability reporting practices in India: an in-depth content analysis of top-listed companies", Social Responsibility Journal, https://doi.org/10.1108/SRJ-03-2018-0078

Melanie Lubinger, Judith Frei and Dorothea Greiling. 2019. Assessing the materiality of university G4-sustainability reports. Journal of Public Budgeting, Accounting &Financial Management Vol. 31 No. 3

Michael Freundlieb, Matthias Gra¨uler and Frank Teuteberg. 2014. A conceptual framework for the quality evaluation of sustainability reports. Management research review volume 37 No.1

Michel Coulmont Stacey Loomis Sylvie Berthelot Francesco Gangi . "Determinants and Impacts of Sustainability Disclosure # " In Sustainability Disclosure: State of the Art and New Directions. Published online: 03 Nov 2015; 25-79.

Mireia Guix, Xavier Font Maria Jesus Bonilla-Priego. 2019. Materiality: stakeholder accountability choices in hotels’ sustainability reports. International Journal of Contemporary Hospitality Management Vol. 31 No. 6

Mohamed M. Shamil, Junaid M. Shaikh, Poh-Ling Ho and Anbalagan Krishnan.2014. The influence of board characteristics on sustainability reporting Empirical evidence from Sri Lankan firms. Asian Review of Accounting Vol. 22 No. 2

Muhammad Bilal Farooq, Ammad Ahmed, Muhammad Nadeem, (2018) "Sustainability reporter classification matrix: explaining variations in disclosure quality", Meditari Accountancy Research, https://doi.org/10.1108/MEDAR-09-2017-0218 Aparna Bhatia, Siya Tuli, (2018) "Sustainability reporting: an empirical evaluation of emerging and developed economies", Journal of Global Responsibility, https://doi.org/10.1108/JGR-01-2018-0003

Muhammad Bilal Farooq, Charl de Villiers. 2019. How sustainability assurance engagement scopes are determined, and its impact on capture and credibility enhancement. https://www.emerald.com/insight/0951-3574.htm

Najul Laskar, "Impact of Corporate Sustainability Reporting on Firm Performance: An Empirical Examination in Asia", Journal of Asia Business Studies, https://doi.org/10.1108/JABS-11-2016-0157

Najul Laskar, Santi Gopal Maji, (2018) "Disclosure of corporate sustainability performance and firm performance in Asia", Asian Review of Accounting, https://doi.org/10.1108/ARA-02-2017-0029

Nazha Gali Dima Hajjar Ibrahim Jamali , (2016),"The corporate governance and social responsibility nexus in the Lebanese banking industry", Corporate Governance: The International Journal of Business in Society, Vol. 16 Iss 3 pp.

Nurlan Orazalin and Monowar Mahmood. 2019. Determinants of GRI-based sustainability reporting: evidence from an emerging economy. https://www.emerald.com/insight/2042-1168.htm

Olivier Boiral , (2013),"Sustainability reports as simulacra? A counter-account of A and A+ GRI reports", Accounting, Auditing & Accountability Journal, Vol. 26 Iss 7 pp. 1036 – 1071

Olivier Boiral, Iñaki Heras-Saizarbitoria, Marie-Christine Brotherton. 2020. Professionalizing the assurance of sustainability reports: the auditors’ perspective. Accounting, Auditing & Accountability Journal Vol. 33 No. 2

Panayis Pitrakkos and Warren Maroun.2018. Evaluating the quality of carbon disclosures. https://www.emerald.com/insight/2040-8021.htm

Patrick Velte. 2020. Determinants and consequences of corporate social responsibility assurance: a systematic review of archival research. https://www.emerald.com/insight/1746-5680.htm

Raine Isaksson, Ulrich Steimle, (2009) "What does GRI‐reporting tell us about corporate sustainability?", The TQM Journal, Vol. 21 Issue: 2, pp.168-181, https://doi.org/10.1108/17542730910938155

Raine Isaksson. 2019. A proposed preliminary maturity grid for assessing sustainability reporting based on quality management principles. www.emeraldinsight.com/2040-8269.htm

RMNC Swarnapali. 2020. Consequences of corporate sustainability reporting: evidence from an emerging market. https://www.emerald.com/insight/1754-243X.htm

Ronald P. Guidry and Dennis M. Patten. 2010. Market reactions to the first-time issuance of corporate sustainability reports Evidence that quality matters. Management and Policy Journal Vol. 1 No. 1

Sahar Sepasi, Udo Braendle and Amir Hossein Rahdari. 2018. Comprehensive sustainability reporting in higher education institutions. Social Responsibility Journal, https://doi.org/10.1108/SRJ-01-2018-0009

Samantha Miles and Kate Ringham.2019. The boundary of sustainability reporting: evidence from the FTSE100. Accounting, Auditing & Accountability Journal Vol. 33 No. 2

Silvia Romero Belen Fernandez-Feijoo Silvia Ruiz , (2014),"Perceptions of quality of assurance statements for sustainability reports", Social Responsibility Journal, Vol. 10 Iss 3 pp. 480 - 499

Simone Domenico Scagnelli Laura Corazza Maurizio Cisi . "How SMEs disclose their sustainability performance. Which variables influence the choice of reporting guidelines?" In Accounting and Control for Sustainability. Published online: 12 Mar 2015; 77-114.

Sónia Ferreira Gomes Teresa Pereira Eugénio Manuel Castelo Branco, (2015),"Sustainability reporting and assurance in Portugal", Corporate Governance: The International Journal of Business in Society, Vol. 15 Iss 3 pp Carol A. Adams , (2013),"Sustainability reporting and performance management in universities", Sustainability Accounting, Management and Policy Journal, Vol. 4 Iss 3 pp. 384 – 392

Tom Tyson, Carol A. Adams. 2019. Increasing the scope of assurance research: new lines of inquiry and novel theoretical perspectives. https://www.emerald.com/insight/2040-8021.htm

Tricia Ong Terri Trireksani Hadrian Geri Djajadikerta , (2016),"Hard and soft sustainability disclosures: Australia’s resources industry", Accounting Research Journal, Vol. 29 Iss 2 pp.

Tricia Ong, Hadrian Geri Djajadikerta, (2018) "Corporate governance and sustainability reporting in the Australian resources industry: an empirical analysis", Social Responsibility Journal, https://doi.org/10.1108/SRJ-06-2018-0135

Undang – Undang Perseroan Terbatas No 40 tahun 2007

Undang-Undang Pasar Modal No. 8 tahun 1995 tentang Pasar Modal

Venkataraman Iyer Ayalew Lulseged, (2013),"Does family status impact US firms' sustainability reporting?", Sustainability Accounting, Management and Policy Journal, Vol. 4 Iss 2 pp. 163 - 189

Voicu D. Dragomir, (2010),"Environmentally sensitive disclosures and financial performance in a European setting", Journal of Accounting & Organizational Change, Vol. 6 Iss 3 pp. 359 - 388

Weng Foong Chang, Azlan Amran, Mohammad Iranmanesh and Behzad Foroughi. 2019. Drivers of sustainability reporting quality: financial institution perspective. https://www.emerald.com/insight/2514-9369.htm

Amri, W. A. A., Asbari, M., Gazali, G., Novitasari, D., & PURWANTO, A. (2021). The effect of religiosity and service quality on job satisfaction: A case study of MSME employees. International Journal of Social and Management Studies, 2(1), 53-63.

Asbari, M., Purwanto, A., & Novitasari, D. (2022). Kepuasan Kerja Guru: Di antara Kepemimpinan Transformasional dan Transaksional. Jurnal Pendidikan Transformatif, 1(1), 7-12.

Asbari, M., Pramono, R., Kotamena, F., Liem, J., Sihite, O. B., Alamsyah, V. U., ... & Purwanto, A. (2020). Studi fenomenologi work-family conflict dalam kehidupan guru honorer wanita. Edumaspul: Jurnal Pendidikan, 4(1), 180-201.

Asbari, M., Hyun, C. C., Wijayanti, L. M., WINANTI, W., Fayzhall, M., & Putra, F. (2020). Hard Skills Dan Soft Skills: Apa Membangun Inovasi Guru Sekolah Islam?. Evaluasi: Jurnal Manajemen Pendidikan Islam, 4(1), 143-172.

Asbari, M., Hyun, C. C., Wijayanti, L. M., Imelda, D., Yanthy, E., & Purwanto, A. (2020). HARD SKILLS ATAU SOFT SKILLS: MANAKAH YANG LEBIH PENTING BAGI INOVASI GURU. Jurnal Edumaspul, 4, 01.

Asbari, M., Nurhayati, W., Purwanto, A., & Putra, F. (2020). Pengaruh Genetic Personality dan Authoritative Parenting Style terhadap Pendidikan Karakter di Aya Sophia Islamic School. Edumaspul: Jurnal Pendidikan, 4(1), 142-155.

Cahyono, Y., Purwanto, A., Azizah, F. N., & Wijoyo, H. (2020). Impact of service quality, university image and students satisfaction towards student loyalty: Evidence from Indonesian private universities. Journal of Critical Reviews, 7(19).

Bernarto, I., Purwanto, A., & Masman, R. R. (2022). The Effect Of Perceived Risk, Brand Image And Perceived Price Fairness On Customer Satisfaction. Jurnal Manajemen, 26(1), 35-50.

Desky, H., Mukhtasar, M., Istan, M., Ariesa, Y., Dewii, I. B. M., Fahlevi, M., ... & Purwanto, A. (2020). Did trilogy leadership style, organizational citizenship behaviour (OCB) and organizational commitment (OCO) influence financial performance? Evidence from pharmacy industries. Systematic Reviews in Pharmacy, 11(10), 297-305.

Fayzhall, M., Asbari, M., Purwanto, A., Goestjahjanti, F. S., Yuwono, T., Radita, F. R., ... & Suryani, P. (2020). Transformational versus Transactional Leadership: Manakah yang Mempengaruhi Kepuasan Kerja Guru. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 256-275.

Jannah, M., Fahlevi, M., Paulina, J., Nugroho, B. S., Purwanto, A., Subarkah, M. A., & Cahyono, Y. (2020). Effect of ISO 9001, ISO 45001 and ISO 14000 toward financial performance of Indonesian manufacturing. Systematic Reviews in Pharmacy, 11(10), 894-902.

Kasingku, J., & Sanger, A. H. F. (2023). Pengaruh pendidikan karakter terhadap moralitas remaja di era digital. Pendas: Jurnal Ilmiah Pendidikan Dasar, 8(2), 6096-6110.

Lusiani, M., Abidin, Z., Fitrianingsih, D., Yusnita, E., Adiwinata, D., Rachmaniah, D., ... & Purwanto, A. (2020). Effect of servant, digital and green leadership toward business performance: evidence from Indonesian manufacturing. Systematic Reviews in Pharmacy, 11.

Mulyana, Y., Chaeroni, N., Erlangga, H., Solahudin, M., Nurjaya, N., Sunarsi, D., ... & Purwanto, A. (2021). The influence of motivation, ability, organizational culture, work environment on teachers performance. Turkish Journal of Computer and Mathematics Education, 12(4), 99-108.

Purwanto, A., & Asbari, M. (2019). Influence of Implementation Chain of Custody Forest Management System FSC-STD-40-004 V3-0 to Business Performance of Paper Industries in Banten Indonesia. International Journal of Management and Humanities, 4(4), 32-36.

Purwanto, A. (2022). The Role of Digital Leadership, e-loyalty, e-service Quality and e-satisfaction of Indonesian E-commerce Online Shop. International Journal of Social and Management Studies, 3(5), 51-57.

Purwanto, A. (2022). How the role of digital marketing and brand image on food product purchase decisions? an empirical study on Indonesian SMEs in the Digital Era. Journal of Industrial Engineering & Management Research, 3(6), 34-41.

Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2023). Investigating the role digital transformation and human resource management on the performance of the universities. International Journal of Data & Network Science, 7(4).

Prameswari, M., Asbari, M., Purwanto, A., Ong, F., Kusumaningsih, S. W., Mustikasiwi, A., ... & Sopa, A. (2020). The impacts of leadership and organizational culture on performance in indonesian public health: The mediating effects of innovative work behavior. International Journal of Control and Automation, 13(2), 216-227.

Quddus, A., Nugroho, B. S., Hakim, L., Ritaudin, M. S., Nurhasanah, E., Suarsa, A., ... & Sudargini, Y. (2020). Effect of ecological, servant dan digital leadership style influence university performance? evidence from indonesian universities. Systematic Reviews in Pharmacy, 11(10), 408-417.

Sudargini, Y., & Purwanto, A. (2020). Pendidikan pendekatan multikultural untuk membentuk karakter dan identitas nasional di era revolusi industri 4.0: a literature review. Journal of Industrial Engineering & Management Research, 1(3), 299-305.

Published

2024-02-16

How to Cite

Hendra, & Murwaningsari, E. (2024). The Effect of Sustainability Reporting Quality, Stock Return, Return on Asset, and BOPO on Earning Management Moderated by Net Interest Margin in Banking Companies Listed on The Indonesia Stock Exchange. International Journal of Social and Management Studies, 5(1), 85–96. https://doi.org/10.5555/ijosmas.v5i1.392

Most read articles by the same author(s)