NEW DETERMINANTS OF FUTURE SHARE PERFORMANCE: IMPACTS OF SUSTAINABILITY REPORTING

Abstract

Sustainability reporting is required to sound corporate accountability and good governance
implementation. While stakeholders are widely diversified, companies must ensure their future
performance excellence. As a paradigm demanding business to exercise its activities to be
liable for society and environment as well as investors, there must be a solution to protect those
interests. This research proposes a new analysis on how sustainability reporting could enhance
future corporate share performance by embracing triple bottom line (TBL) reporting and
balanced scorecard (BSC) disclosure as predictors. To maintain its objectivity, this research
involves several control variables covering both financial and non-financial aspects. The
method chosen embraces several techniques, including literature review, content validation,
and statistical calculation. The results of a regression analysis suggest that all TBL reporting
elements and internal good governance practices are associated positively with future share
performance. This research also reveals that economic security is the foundation of future
performance, which can be achieved through CSR and environmental program refinement.