SUSTAINABILITY REPORT DISCLOSURE AND CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE: THE MODERATING ROLE OF MANAGERIAL OWNERSHIP IN ENERGY SECTOR COMPANIES

Abstract

Research Objectives: This study aims to empirically examine the effects of Sustainability Report Disclosure and Corporate Social Responsibility (CSR) on the financial performance of energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. It also investigates whether managerial ownership moderates the relationships between Sustainability Report Disclosure, CSR, and financial performance. Design Methodology / Approach Research: This study employs a quantitative research approach using secondary data obtained from annual reports and Sustainability Reports of energy sector companies listed on the IDX. The sample was selected using purposive sampling, resulting in 48 companies/observations. Financial performance was measured using Return on Assets (ROA), while the hypotheses were tested using PROCESS Macro version 4.2 for SPSS 26 to assess direct and moderating effects. Research Results: The results indicate that Sustainability Report Disclosure does not have a significant effect on financial performance, with a significance value of 0.144. Similarly, Corporate Social Responsibility does not significantly affect financial performance, with a significance value of 0.291. Managerial Ownership has a significant direct effect on financial performance in the Sustainability Report model (p = 0.013). However, managerial ownership does not significantly moderate the relationship between Sustainability Report Disclosure and financial performance (p = 0.196) or between CSR and financial performance (p = 0.095). Implication of Research Results: These findings indicate that sustainability disclosure and CSR activities in the Indonesian energy sector may generate benefits that are predominantly long-term and non-financial, making their effects on short-term financial performance less immediately observable. The findings also suggest that managerial ownership alone is insufficient to strengthen the financial benefits of sustainability and CSR practices. Companies should therefore integrate sustainability and CSR initiatives more strategically with their core business objectives to enhance their potential contribution to financial performance.