Ownership Structure and Corporate Sustainability Performance: Empirical Evidence from Indonesian Listed Banking Firms

Abstract

This study aims to obtain empirical evidence regarding social responsibility performance influenced by ownership structure, as well as to find out whether financial distress conditions make company managers change the direction of decisions related to sustainability activities. This study uses data on banking industry business entities listed on the Indonesia Stock Exchange (IDX) for the 2019-2023 period. Sustainability performance is proxied using information disclosure regarding sustainability activities. The research sample was then processed using panel data regression. The results showed that institutional, family, managerial, and foreign ownership were found to improve sustainability performance, while government ownership was found to have no effect. Sustainability performance is found to increase in companies that are classified as healthy. The health financial condition of a company is also found to affect the effect of ownership structure on sustainability performance.