Kurdish Studies

ISSN: 2051-4883 | e-ISSN: 2051-4891
Email: editor@kurdishstudies.net

Driving Investor Confidence through Strategic Sustainability Disclosure: Evidence from the Indonesian Banking Sector

Yudi Priambodo Purnomo Sidi
Faculty of Economics and Business, Universitas Brawijaya, Jawa Timur, 65300, Indonesia,
Moeljadi
Faculty of Economics and Business, Universitas Brawijaya, Jawa Timur, 65300, Indonesia,
Sumiati
Faculty of Economics and Business, Universitas Brawijaya, Jawa Timur, 65300, Indonesia
Risna Wijayanti
Faculty of Economics and Business, Universitas Brawijaya, Jawa Timur, 65300, Indonesia
Keywords: Corporate Value, Risk Mitigation in Investments, Sustainability Integration.

Abstract

In the ever-evolving landscape of global finance, sustainability disclosure has emerged as a game-changer for banking companies. This research unravels the significant role that strategic sustainability disclosure plays in shaping investor confidence and guiding investment decisions. Against the backdrop of mounting global concerns about environmental and social welfare, investors are increasingly seeking clarity on the sustainability impact of their investments. By analysing a decade's worth of financial statement data from banks listed on the Indonesia Stock Exchange, this study utilizes advanced regression analysis through the cutting-edge EViews 9 software. The findings highlight the undeniable power of strategic sustainability disclosure as a communication tool for conveying corporate value to discerning investors in the banking sector. These findings have far-reaching implications. Not only do they offer insights for astute investors seeking alignment with sustainability principles, but they also provide valuable knowledge for banking entities aiming to decipher the intricate relationship between sustainability disclosure and investor engagement. This groundbreaking research expands the existing literature, presenting a compelling case study of the Indonesian banking sector. By harnessing the potential of strategic sustainability disclosure, banks can boost investor confidence, attract responsible investments, and contribute to a more sustainable future.

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Keywords

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