Value Relevance, Sustainability Reporting Award, and Board Structure: An Influence and Analysis of Value Relevance


  • Yolanda Florenzcia Petra Christian University
  • Juniarti Petra Christian University
  • Yulius Jogi Christiawan Petra Christian University



value relevance, Sustainability Reporting Award (SRA), board structure


Research on the relevance of the value of sustainability reporting as measured by the Sustainability Reporting Award (SRA) in Indonesia is still rarely studied. In Indonesia, many go-public companies have not realized the importance of reporting the environment and succeeded in getting the SRA due to the costs incurred in carrying out sustainability reporting activities in accordance with Global Reporting Initiative (GRI). The research examined whether there was value relevance in sustainability reporting information and a role for the board structure in supporting companies to obtain awards or not. The research was conducted with six-year data, with a sample of 29 companies that had received SRA at least once from 2014 to 2019. Then, Ohlson’s model was used to measure the value relevance of accounting information and SR, which was seen through changes in R2. Board structure was proxied with board size, board independence, and board meeting. The test was conducted using SmartPLS. The research results indicate that information on obtaining the SRA does not have the added value relevance, as evidenced by the R2 value. It does not increase and has an insignificant relationship with stock prices. Meanwhile, the board structure that can influence the company in obtaining the SRA is only the independence of the board. The research contributes to showing the value relevance of accounting information and sustainability reporting observed through SRA in Indonesia. Besides that, observing the roles of board structure encourages sustainability reporting of a company in acquiring an SRA.


Plum Analytics

Author Biographies

Yolanda Florenzcia, Petra Christian University

Faculty of Business and Economics

Juniarti, Petra Christian University

Faculty of Business and Economics

Yulius Jogi Christiawan, Petra Christian University

Faculty of Business and Economics


Adeniyi, S. I., & Fadipe, A. O. (2018). Effect of board diversity on sustainability reporting in Nigeria: A study of beverage manufacturing firms. Indonesian Journal of Corporate Social Responsibility and Environmental Management, 1(1), 43–50.

Ahmad, N. B. J., Rashid, A., & Gow, J. (2017). CEO duality and corporate social responsibility reporting: Evidence from Malaysia. Corporate Ownership and Control, 14(2), 69–81.

Aksan, I., & Gantyowati, E. (2020). Disclosure on sustainability reports, foreign board, foreign ownership, Indonesia sustainability reporting awards and firm value. Journal of Accounting and Strategic Finance, 3(1), 33–51.

Aliyu, U. S. (2019). Board characteristic and corporate environmental reporting in Nigeria. Asian Journal of Accounting Research, 4(1), 2–17.

Baboukardos, D. (2018). The valuation relevance of environmental performance revisited: The moderating role of environmental provisions. The British Accounting Review, 50(1), 32–47.

Birindelli, G., Dell’Atti, S., Iannuzzi, A. P., & Savioli, M. (2018). Composition and activity of the board of directors: Impact on ESG performance in the banking system. Sustainability, 10(12), 1–20.

Clarissa, S. V., & Rasmini, N. K. (2018). The effect of sustainability report on financial performance with good corporate governance quality as a moderating variable. International Journal of Sciences: Basic and Applied Research, 40(2), 139–149.

Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18(1), 122–136.

Fuadah, L. L., Safitri, R. H., & Yuliani. (2019). Factors influencing financial performance through sustainability reporting in Indonesia. Sriwijaya International Journal of Dynamic Economics and Business, 3(1), 53–72.

Ghozali, I., & Chariri, A. (2014). Teori akuntansi International Financial Reporting Standards (IFRS). Badan Penerbit Universitas Diponegoro.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE.

Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41–61.

Herda, D. N., Taylor, M. E., & Winterbotham, G. (2012). The effect of board independence on the sustainability reporting practices of large U.S. firms. Issues in Social and Environmental Accounting, 6(3/4), 25–44.

Hu, M., & Loh, L. (2018). Board governance and sustainability disclosure: A cross-sectional study of Singapore-listed companies. Sustainability, 10(7), 1–14.

Juniarti, Margalo, I., Santoso, S. M., & Florenzcia, Y. (2019). The value relevance of environmental responsibility performance. Indian Journal of Public Health Research & Development, 10(6), 1395–1400.

Kaspereit, T., & Lopatta, K. (2011). The value relevance of corporate sustainability and sustainability reporting in Europe. Retrieved from

Kaymak, T., & Bektas, E. (2017). Corporate social responsibility and governance: Information disclosure in multinational corporations. Corporate Social Responsibility and Environmental Management, 24(6), 555–569.

Laskar, N., Chakraborty, T. K., & Maji, S. G. (2017). Corporate sustainability performance and financial performance: Empirical evidence from Japan and India. Management and Labour Studies, 42(2), 88–106.

Loh, L., Thomas, & Wang, Y. (2017). Sustainability reporting and firm value: Evidence from Singapore-listed companies. Sustainability, 9(11), 1–12.

Lucia, & Panggabean, R. R. (2018). The effect of firm’s characteristic and corporate governance to sustainability report disclosure. SEEIJ (Social Economics and Ecology International Journal), 2(1), 18–28.

Michael, & Lukman, H. (2019). Pengaruh proporsi direksi independen, proporsi komisaris independen dan stakeholders terhadap sustainability report. Jurnal Multiparadigma Akuntansi, 1(3), 638–645.

Narullia, D., & Subroto, B. (2018). Value relevance of accounting information and corporate social responsibility in Indonesia and Singapore. JAM: Jurnal Aplikasi Manajemen, 16(1), 9–19.

Narullia, D., Subekti, I., Azizah, N., & Purnamasari, F. (2019). Value relevance of corporate social responsibility disclosure on public companies in ASEAN countries. In International Conference on Economics, Education, Business and Accounting (3rd ICEEBA) (pp. 475–486).

NCSR. (2020). About Asia SR Rating. Retrieved May 12th 2020 from

Ohlson, J. A. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661–687.

Pham, H. T. S., & Tran, H. T. (2019). Board and corporate social responsibility disclosure of multinational corporations. Multinational Business Review, 27(1), 77–98.

Pirson, M., Martin, K., & Parmar, B. (2017). Formation of stakeholder trust in business and the role of personal values. Journal of Business Ethics, 145(1), 1–20.

Prihatni, R., Subroto, B., Saraswati, E., & Purnomosidi, B. (2018). Comparative value relevance of accounting information in the IFRS period between manufacturing company and financial services go public in Indonesia Stock Exchange. Academy of Accounting and Financial Studies Journal, 22(3), 1–9.

Saha, A., & Bose, S. (2017). The value relevance of financial and non-financial information: Evidence from recent academic literature. In M. Ojo & J. V. Akkeren (Eds.), Value relevance of accounting information in capital markets. IGI Global.

Sarumpaet, S., Nelwan, M. L., & Dewi, D. N. (2017). The value relevance of environmental performance: Evidence from Indonesia. Social Responsibility Journal, 13(4), 817–827.

Shamil, M. M., Shaikh, J. M., Ho, P. L., & Krishnan, A. (2014). The influence of board characteristics on sustainability reporting : Empirical evidence from Sri Lankan firms. Asian Review of Accounting, 22(2), 78–97.

Solovida, G. T., & Latan, H. (2017). Linking environmental strategy to environmental performance: Mediation role of environmental management accounting. Sustainability Accounting, Management and Policy Journal, 8(5), 595–619.

Sutopo, B., Kot, S., Adiati, A. K., & Ardila, L. N. (2018). Sustainability reporting and value relevance of financial statements. Sustainability, 10(3), 1–14.

Wang, M. C. (2017). The relationship between firm characteristics and the disclosure of sustainability reporting. Sustainability, 9(4), 1–14.

Zaid, M. A. A., Wang, M., & Abuhijleh, S. T. F. (2019). The effect of corporate governance practices on corporate social responsibility disclosure: Evidence from Palestine. Journal of Global Responsibility, 10(2), 134–160.



Abstract 389  .
PDF downloaded 259  .