Corporate Governance, Organizational Slack, and Sustainability Report Disclosure with Mediation Financial Performance

Abstract

This study aims to examine the influence of corporate governance, organizational slack on sustainability report disclosure with financial performance as a mediating variable. The samples are selected using a purposive sampling method with a final sample of 194 observations from 39 companies from property and construction sectors listed in Indonesian Stock Exchange (IDX). The hypothesis test is conducted using regression analysis.The analysis result shows that the debt to total asset ratio does not mediate the influence of corporate governance on the sustainability report disclosure. However, the ratio of debt to total asset perfectly mediates the effect of absorbed slack from organizational slack on sustainability report. Unlike previous studies, this study uses debt to total asset ratio as mediating variable, this study also add organizational slack as independent variable