THE INFLUENCE OF GOOD CORPORATE GOVERNANCE AND SUSTAINABILITY REPORTING TOWARD CORPORATE’S FINANCIAL PERFORMANCE (EMPIRICAL STUDY ON CORPORATES THAT CONSECUTIVELY REGISTERED IN CORPORATE GOVERNANCE PERCEPTION INDEX (CGPI) AND LISTED ON INDONESIA STOCK EXC

Abstract

he research aims to determine empirical proof about the influence of Good Corporate Governance and Sustainability Reporting toward company’s financial performance. The research consists of 2 independent variables; Good Corporate Governance and Sustainability Reporting, and company’s financial performance as dependent variable. The scoring of CGPI is used as the proxy of Good Corporate Governance, GRI-G4 is used as the proxy for corporate sustainability report disclosure, and returns on assets (ROA) is used as the proxy of company’s financial performance. The sample that was used in this research are eight corporates which was listed on Indonesia Stock Exchange (IDX) over the five years’ period of 2014-2018 with eight company so the overall samples are 40 corporations. The source is based on purposive sampling method. The data is processed by using multiple regression models. The results of this research shows that Good Corporate Governance and the disclosure of Sustainability Report affect both partially and simultaneously