PENGARUH GLOBAL REPORTING INITIATIVE DAN VOLATILITAS TERHADAP RETURN ON ASSETS DAN DEBT TO EQUITY RATIO PADA PERUSAHAAN OTOMOTIF YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2019–2025

Abstract

Introduction: Firm-specific effects were found to constitute the predominant source of variation in Return on Assets (ROA) and Debt to Equity Ratio (DER) among automotive sub-sector firms listed on the Indonesia Stock Exchange (IDX) during 2019–2025. This study investigates whether Global Reporting Initiative (GRI) disclosure and stock price volatility contribute to those financial indicators. Methods: A quantitative framework was adopted by utilizing balanced panel observations encompassing eight companies across seven consecutive years, yielding 56 observations. Based on the Chow and Hausman tests, the Fixed Effect Model (FEM) was deemed the most suitable estimation technique for both dependent variables. Furthermore, the classical assumptions concerning multicollinearity, heteroscedasticity, and autocorrelation were fulfilled. Results: The empirical evidence demonstrates that GRI disclosure exerts no statistically discernible influence on either ROA (p = 0.7758) or DER (p = 0.3669). Likewise, stock price volatility fails to produce a significant effect on ROA (p = 0.7622), although its influence on DER is positive and statistically significant (p = 0.0328). When examined concurrently, GRI disclosure and volatility significantly explain variations in ROA (F = 27.761; p < 0.001; R² = 84.45%) and DER (F = 314.074; p < 0.001; R² = 98.40%). Hence, the explanatory contribution of GRI disclosure and volatility individually remains circumscribed, whereas company-specific characteristics exert greater influence on financial performance and capital structure within Indonesia’s automotive sector. Keywords: Global Reporting Initiative, Volatility, Return on Assets, Debt to Equity Ratio, Panel Data, Fixed Effect Model