THE EFFECTS OF MEDIA EXPOSURE, ENVIRONMENTAL COSTS, AND ENVIRONMENTAL PERFORMANCE ON SUSTAINABILITY REPORT DISCLOSURE: THE MODERATING ROLE OF GOOD CORPORATE GOVERNANCE

Abstract

This study examines the effects of Environmental Cost, Environmental Performance, and Media Exposure on Sustainability Report Disclosure, with Good Corporate Governance (GCG) acting as a moderating variable among basic materials companies listed on the Indonesia Stock Exchange from 2020 to 2024. The results indicate that Environmental Performance positively and significantly influences sustainability reporting, suggesting that companies with stronger environmental achievements are more likely to disclose sustainability information to enhance accountability and maintain legitimacy among stakeholders. Conversely, Environmental Cost and Media Exposure do not exhibit significant effects, indicating that environmental expenditures and media attention are not primary drivers of sustainability disclosure in the observed firms. The findings also reveal that GCG significantly moderates the relationship between Environmental Performance and Sustainability Report Disclosure, although the moderating effect is negative. This suggests that stronger governance mechanisms may lead companies to be more selective and cautious when communicating sustainability-related information. However, GCG does not significantly moderate the relationships involving Environmental Cost and Media Exposure. The study supports both Legitimacy Theory and Stakeholder Theory by emphasizing the importance of environmental performance in encouraging sustainability reporting. From a practical perspective, companies should prioritize improving environmental performance to strengthen sustainability disclosure practices. Despite its contributions, the study is limited to the basic materials sector and employs a single proxy for corporate governance. Future research is recommended to include broader governance measures, additional explanatory variables, and different industry sectors to provide a more comprehensive understanding of sustainability reporting determinants.