Examining the Role of Independent Audit Committees in Enhancing Sustainability Reporting

This research analyzes the influence of shareholder pressure and independent audit committees on the quality of Sustainability report disclosures with profitability as a moderating variable. A sustainability report is a report that reflects a company's social, economic, and environmental responsibilities, which are an important concern for stakeholders. This study uses 40 banking companies listed on the Indonesia Stock Exchange (BEI) during 2020-2023. The data analysis method used is multiple regression with the independent variable shareholder pressure and independent audit committee, the moderating variable profitability, and the dependent variable sustainability report quality. The research results show that shareholder pressure has a significant positive effect on sustainability reports, while the independent audit committee does not show a significant impact. Profitability strengthens the relationship between shareholder pressure and sustainability reports but does not moderate the relationship between independent audit committees and sustainability reports. These findings imply that companies need to pay attention to the role of shareholders and profitability in increasing the disclosure of sustainability reports as part of the company's sustainability strategy.