Financial Performance, Governance Mechanisms, and Industry Profile as Drivers of Sustainability Report Disclosure

Given the inconsistent findings of previous studies and the limited evidence from Indonesian manufacturing companies, this study analyses the influence of financial performance, governance mechanisms, and industry profile on sustainability report disclosure among manufacturing companies listed on the Indonesia Stock Exchange during 2021–2023. Financial performance is represented by profitability, leverage, and corporate activity; governance mechanisms are represented by the independent board of commissioners and the audit committee; and industry profile is represented by company size and industrial type. The study uses secondary data obtained from annual reports, financial statements, and sustainability reports. Purposive sampling yielded 52 manufacturing companies and 156 firm-year observations. Sustainability report disclosure was measured using the Global Reporting Initiative disclosure index, and the data were analysed using multiple linear regression. The results show that the independent variables jointly have a significant effect on sustainability report disclosure. Individually, profitability, leverage, the independent board of commissioners, company size, and industrial type have significant effects, whereas corporate activity and the audit committee have no significant effects. The model explains 78.7% of the variation in sustainability report disclosure (adjusted R² = 0.787). The findings indicate that financial capacity, governance oversight, and firm visibility are relevant to sustainability disclosure among Indonesian manufacturing companies and are consistent with stakeholder and legitimacy perspectives.