The Influence of Good Corporate Governance Mechanisms and Sustainability Report Disclosure on the Level of Corporate Profitability (Study at Coal Mining Companies Listed on the Indonesia Stock Exchange in 2013-2017)

Chaerani, Amalia Prila and Carolina, Yenni (2018) The Influence of Good Corporate Governance Mechanisms and Sustainability Report Disclosure on the Level of Corporate Profitability (Study at Coal Mining Companies Listed on the Indonesia Stock Exchange in 2013-2017). International Journal of Business, Economics and Law, 17 (2). pp. 105-112. ISSN 2289-1552

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Abstract

The problems that occur related to the level of profitability occur a lot in various industrial sectors, one of which is in the coal mining sector. This study aims to determine the influence of the Good Corporate Governance mechanism and sustainability report disclosure on the level of profitability of coal mining companies listed on the Indonesia Stock Exchange during the period 2013 - 2017. The population in this study is coal mining companies listed on the Indonesia Stock Exchange up to December 31, 2017. There were five samples selected based on the purposive sampling method. The type of research chosen by researchers is descriptive research which aims to describe thoroughly and clearly the characteristics of the problem or phenomenon that is faced, with a quantitative approach using statistical calculations with SPSS 21 software tools, and aims to test the predetermined hypothesis. The data used in this study are in the form of secondary data in the form of company sustainability reports for the period 2013 - 2017, company annual reports, and company websites. The results of the study show that there is no influence from the mechanism of good corporate governance and sustainability report disclosure on the level of profitability. Based on the research that has been done, the company should better optimize the mechanism of good corporate governance and follow its rules, in this research it was found that there were still several companies that had not fully followed the regulations in implementing governance mechanisms. In disclosing the sustainability report the company must pay more attention to each indicator that will disclose, in this research many companies still focused just in economic indicators for social and environment indicators still got less attention. Companies must pay more attention to other factors that can influence the level of profitability of the company.

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