Analysis Of Sustainability Report Disclosure And Firm^s Market Value Following The Implementation Of POJK No. 51/POJK.03/2017
Jeska Almira Indyanti, Edward Tanujaya

Master of Accounting, Universitas Indonesia
Gedung Prof. Dr. M. Sadli, Jl. Salemba Raya No. 4, Kampus UI Salemba, Jakarta 10430

Abstract

This study aims to analyze the disclosure of firms^ Sustainability Report following the implementation of regulation number 51/POJK.03/2017 by the Financial Services Authority and the market value after the Sustainability Report was published. Since the implementation of the regulation in 2017, financial services institutions, issuer, and public firms are required to publish their Sustainability Report to the Financial Services Authority and notify the public through electronic medium (the firm^s website) or print media if they do not have a website. This study is conducted on three Indonesia Stock Exchange registered firms: PT AKR Corporation Tbk, PT Indo Tambangraya Megah Tbk, and PT Petrosea Tbk, which are classified into the energy sector based on the Indonesia Stock Exchange Industrial Classification or IDX-IC. This study used content analysis from a secondary data that is 2018 - 2021 period Sustainability Report with a comparison to GRI 2020 standard and movement on firms^ closing prices one month after the publication of Sustainability Report. The result of this study shows that regulation number 51/POJK.03/2017 by the Financial Services Authority affects firms^ Sustainability Report in the form of an increase in the amount of information disclosed. However, after the publication of Sustainability Report the results do not show any increase in corporate values through the closing prices. This study investigated the Sustainability Report that was required to report and published. This requirement is based on regulation No. 51 (POJK 51) by the Indonesian Financial Services Authority, which requires firms to make Sustainability Report that has to be reported to the Indonesian Financial Services Authority and published to the public every year. In this effort of reporting, it is hoped that there will be an increase in a firm^s value.

Keywords: Sustainability Report, market value, content analysis, 51/POJK.03/2017

Topic: Accounting