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D. Logical Framework
In this new age lot of companies consider to disclose report not only about their financial performance but also companies environmental
performance and social performance this condition is supported by 3 theories that are stakeholder theory, agency theory and legitimacy theory.
One of the main finding in this literature review is lot of companies need a standard to disclose companies social and environmental performance and lot
of companies use GRI sustainability guideline report as a standard to disclose
companies performance. Positive and negative correlation were found from the previous research about relationship sustainability disclosure, profitability,
leverage and size of board commissioners. According to the research of sustainability practice by Fuk Yi and Ka Yu
2010 that one of leverage analysis DER has significant relationship with sustainability reporting disclosure while ROA has no relationship on the other
hand Ika Nugroho and Irine Stephani Arjowo 2014 found that sustainability disclosure has no significant to leverage but significant to profitability so
company with extensive sustainability report disclosure tends to get big ROA . The study conducted by Evi, Zuraida and Devi 2011 reveal that size of
board commissioners has positive correlation with CSR disclosure, in line with that Indah and Rahmawati 2013 did a research with positive result for size of
board commissioner and CSR disclosure, while Fadhila Adhipradana 2014 found that board commissioners has no relationship with sustainability reporting
disclosure.
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Logical Framework
Sustainability Reporting Index
Y
Impact Profitability, Leverage and Size of BC
to Sustainability Reporting Disclosure
Hypothesis Test : Multiple Regression
Analysis
Conclusion
Supporting Theory : 1.Stakeholder Theory
2. Agency Theory 3. Legitimacy Theory
Profitability X1
Leverage X2
Size of Board Commissioner
X3
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E. Hypothesis Development
