An Analysis of Sustainable Finance Disclosure at Indonesian Sharia Commercial Banks using POJK 51/POJK.03/2017
Its Determinants and Influence on the Profitability
- 10.2991/aer.k.211106.085How to use a DOI?
- Sustainable finance disclosure; Sharia commercial bank; POJK 51/POJK.03/2017; Elements of corporate governance; Profitability
Sustainable finance is a business principle that can generate profit today without sacrificing future generations by considering the economic, social, and environmental aspects. Regulation on the implementation of sustainable finance for financial service institutions (FSI), issuers, and public companies issued by the Financial Service Authority/Otoritas Jasa Keuangan (FSA/OJK) is arranged in the Financial Service Authority Regulation/Peraturan OJK (POJK) Number 51/POJK.03/2017. FSI consists of all banks in Indonesia, including sharia commercial banks. This research aims to measure the level of sustainable finance disclosure in sharia commercial banks using POJK 51/ POJK.03/2017, testing its determinants i.e., corporate governance elements which consist of board of directors, independent directors, and audit committee, and observing its influence on the profitability. The study sample is 10 PSB issuing sustainable reports and annual reports on their websites with an observation period of 4 years (2016-2019). The data were analyzed using Partial Least Square-Structural Equation Model (PLS-SEM). The study results show that sustainable finance disclosure is executed at a high level. Furthermore, the board of directors and the audit committee are determinants that have a positive effect on sustainable finance disclosure, while independent directors have a negative effect. However, sustainable finance disclosure itself has no effect on profitability.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Haqqi Lailatul Qudriyah AU - Hastuti AU - Dian Imanina Burhany AU - Sumiyati Sumardi PY - 2021 DA - 2021/11/23 TI - An Analysis of Sustainable Finance Disclosure at Indonesian Sharia Commercial Banks using POJK 51/POJK.03/2017 BT - Proceedings of the 2nd International Seminar of Science and Applied Technology (ISSAT 2021) PB - Atlantis Press SP - 544 EP - 551 SN - 2352-5401 UR - https://doi.org/10.2991/aer.k.211106.085 DO - 10.2991/aer.k.211106.085 ID - Qudriyah2021 ER -