Drivers of Sustainability Assurance: An Empirical Study of Indonesian Manufacturing Firms

Valencia Gunawan; Kurniawati

doi:10.55927/ijbae.v5i1.583

Authors

Valencia Gunawan Universitas Bunda Mulia
Kurniawati Universitas Bunda Mulia

DOI:

https://doi.org/10.55927/ijbae.v5i1.583

Keywords:

Sustainability Assurance, Audit Committee, Institutional Ownership, Profitability, Leverage, Firm Size

Abstract

Amidst growing demands for non-financial transparency, this study investigates the determinants of sustainability assurance adoption among manufacturing firms listed on the Indonesia Stock Exchange during 2021–2024. Using binary logistic regression, this study examines the role of corporate characteristics and governance mechanisms in influencing firms’ decisions to externally verify sustainability reports. The results show that sustainability assurance is primarily driven by firm-specific characteristics rather than governance structures. Profitability, leverage, and firm size significantly increase the likelihood of assurance adoption, while audit committees and institutional ownership do not exhibit a significant effect. This study contributes empirical evidence from an emerging market context and offers insights for stakeholders seeking to enhance the credibility of sustainability reporting.

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