THE EFFECT OF FIRM SIZE, INSTITUTIONAL OWNERSHIP, PROFITABILITY AND EXTERNAL ASSURANCE ON SUSTAINABILITY REPORT DISCLOSURE OF MANUFACTURING COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE IN 2023

This study investigates the effect of firm size, institutional ownership, profitability, and external assurance on the sustainability report disclosure (SRD) of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2023. Utilizing a sample of 47 manufacturing companies, the study employs multiple linear regression analysis to test the hypotheses. The analysis includes classical assumption tests, t-tests, and F-tests to determine the significance of each independent variable on SRD. The findings reveal that firm size, institutional ownership, and profitability do not have a significant impact on sustainability report disclosure. Specifically, the t-values and p-values for these variables indicate that their effects are statistically insignificant at the 5% significance level. Conversely, external assurance demonstrates a significant positive effect on SRD, as evidenced by a t-value of 3.943 and a p-value of 0.000, confirming the hypothesis that external assurance significantly enhances the quality and comprehensiveness of sustainability reports. Based on these results, it can be concluded that among the variables studied, only external assurance significantly influences the extent of sustainability report disclosure. This suggests that manufacturing companies seeking external assurance for their sustainability reports tend to provide higher quality and more comprehensive disclosures.