DRIVERS OF CORPORATE SUSTAINABILITY REPORTING DISCLOSURE: THE ROLE OF TOTAL ASSETS, BUSINESS AGE, FINANCIAL RISK, PROFITABILITY, AND CORPORATE GOVERNANCE

Abstract

Corporate sustainability reporting has received increasing attention in recent years due to increased awareness of the importance of transparency and social responsibility. This study aims to analyze the factors influencing sustainability reporting disclosure. The key variables considered were total assets, business age, financial risk, profitability, industry type, and corporate governance. The study results found that the factors that significantly influenced sustainability report disclosure were financial risk, corporate governance, and industry type. Organizations with effective financial risk management and strong governance systems are more likely to disclose sustainability information. In addition, industries with high environmental impacts, such as energy and manufacturing, have incentives to disclose environmental information through sustainability reports. In contrast, other factors such as total assets, firm age, and profitability were not found to significantly influence sustainability report disclosure. This indicates that organizational structure or financial performance may not be the main determinants of sustainability disclosure. However, the study also suggests that the analyzed factors can only partially explain the differences in sustainability reporting disclosures. Therefore, it is necessary to study other factors that may play an additional important role, such as organizational culture, consumer demands, and government policy pressures. The results of this study contribute to an understanding of the factors that motivate organizations to disclose sustainability information, which can be used to develop policy or practice guidelines that support long-term sustainability.