The Effect of Sustainability Report Disclosure and Innovations on Earnings Informativeness With Environmental Performance as Moderating

  • I Gusti Ayu Diah Dhyanasaridewi Accounting Dept, Faculty of Economics and Business, University of Trisakti, Jakarta, Indonesia.
  • Etty Murwaningsari Accounting Dept, Faculty of Economics and Business, University of Trisakti, Jakarta, Indonesia.

Abstract

As climate change has been worsens, businesses must pay more attention to how their activities affect the environment. The intentions of this current research are to analysed at the influence of environmental performance in moderating the relationship between sustainability reporting disclosure and earnings informativeness. This research paper used Purposive Sampling Method as a sampling technique and identified forty-two (42) companies in manufacture and mining sector listed in the IDX, which follow PROPER consistently and publishes audited annual reports from 2017-2019. Meanwhile, an Absolute Difference Value Method uses to test the effect of the moderating variable, and SPSS V27 use as a statistic analytical tool to analyse the hypothesis. The empirical test result indicate that environmental performance could weaken the effect of sustainability report disclosure on the informativeness of earnings, and on the other hand it also could strengthen the influence of corporate innovation on earnings informativeness. On the other hand, it doesn't have a significant direct effect on the informativeness of earnings.

Keywords: Sustainability reporting, Innovations, Earnings informativeness, Earning Response coefficient, Environmental performance.

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Dhyanasaridewi, I. G. A. D., & Murwaningsari, E. (2021, March 29). The Effect of Sustainability Report Disclosure and Innovations on Earnings Informativeness With Environmental Performance as Moderating. Journal of Accounting, Business and Finance Research, 11(1), 29-37. https://doi.org/https://doi.org/10.20448/2002.111.29.37
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