Beyond Financial Growth: Do Governance and Profitability Drive Sustainability Transparency?
Abstract
Amidst increasing regulatory pressure for corporate accountability, sustainability reporting has become a strategic imperative for the energy sector. This study investigates the impact of profitability, institutional ownership, audit committee effectiveness, and firm size on sustainability report disclosure among energy companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Using a purposive sampling technique, a longitudinal dataset of 40 observations from 8 representative firms was analyzed. Data processing was conducted via multiple linear regression analysis. The empirical results demonstrate that profitability, audit committee, and firm size exert a significant positive influence on the extent of sustainability disclosure. Conversely, institutional ownership was found to have a negative effect. These findings underscore that internal corporate governance mechanisms and financial capacity are primary drivers in enhancing transparency and stakeholder accountability. This research provides practical insights for regulators and investors regarding the non-financial reporting landscape in high-impact industries.
How to cite
Rahmawaty, D. & Bintara, R. (2026). Beyond Financial Growth: Do Governance and Profitability Drive Sustainability Transparency?. Journal of Islamic Contemporary Accounting and Business, 4(1). https://doi.org/10.30993/jicab.v4i1.553
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Copyright (c) 2026 Beyond Financial Growth Do Governance and Profitability Drive Sustainability Transparency? © 2026 by Dinda Rahmawaty, Rista Bintara is licensed under Creative Commons Attribution-NonCommercial 4.0 International
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