Corporate Ownership Structure and The Quality of ESG Disclosure: The Nexus of Contract Perspective
Keywords:
Corporate ownership sturucture, ESG disclosure, Nexus of contract perspectiveAbstract
The ESG reporting practice reflects the management's commitment to implementing the concept of sustainability in corporate governance. Based on the results of the previous research, the quality of ESG reporting is determined by internal factors, such as the ownership structure. In this research, the ownership structures are indicated by the managerial ownership, the institutional ownership, and the stakeholder pressure (the governmental ownership). In the Indonesian context, not many public companies have focused on ESG reporting. For companies in carbon intensive industries, ESG reporting is used to increase the legitimacy of the company's business activities. Thus, ESG reporting is only a report that is prepared without paying attention to the company's stakeholders. This research focuses on whether in the context of companies in Indonesia, the condition of corporate ownership will make the company disclose the good quality of ESG reporting to increase the company's legitimacy.
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