Analysis of the Effects of Environmental Performance and Disclosures Corporate Sustainability Reporting on Earning Response Coefficient

This study aims to determine whether disclosure of sustainability reporting by the company and also environmental performance affect earnings response coefficient. The development of a business that is getting faster and wider makes the level of competition between companies higher. This development is followed by the uncontrolled exploitation of natural and human resources. To be able to compete in complex business conditions, companies must be able to do sustainability actions that can be presented through sustainability reports. It also needs to be supported also by a more focused environmental management, where environmental aspects become one of the variables in the ranking of environmental performance issued by the Ministry of Environment through PROPER. The purpose of this study was to determine the effect ofdisclosure sustainability report and environmental performance on earnings response coefficient which is proxied by the cummulative abnormal return value. The number of samples in this study were 63 companies from three years of the 2016-2018 observation period. Hypothesis testing is done by using multiple linear regression analysis techniques and paired sample tests