Abstract:

This research is conducted to observe the determinant factor of sustainability report disclosure derived from the fundamental theory of corporate social responsibility. There are four fundamental theories of social responsibility used, legitimacy theory, agency theory, resource-based view, and signaling theory. In this research, the disclosure of sustainability report is divided into three types, sustainability report disclosure that is integrated with annual report, GRI-based stand alone sustainability report, and GRI-based stand alone sustainability report with external assurance. The results of this study indicate that theories of legitimacy and signal theory are two theories that trigger companies in Indonesia to conduct disclosure of sustainability reports, derived from entity size variables and liquidity levels. This study uses a sample of 251 companies listed on the Indonesia Stock Exchange during the year 2014-2016 by excluding companies engaged in the financial sector.