Sari Atmini

The emergence of sustainable business practices has garnered interest among stakeholders. However, the question of whether sustainability performance provides companies with a competitive advantage is still being debated in the literature. This paper aims to examine the influence of sustainability performance – namely economic sustainability performance and environmental, social, governance (ESG) – on competitive advantage, with the effectiveness of enterprise risk management (ERM) as the moderating variable. This paper used 202 firm-year observations during 2015–2022 from non-financial sector companies listed on the Indonesia Stock Exchange. To test the hypotheses, panel data regression with a one-year time-lag analysis is conducted. The findings show that economic sustainability performance has no relationship with competitive advantage, while ESG has a positive effect. Furthermore, ERM effectiveness strengthens the effect of economic sustainability and ESG on competitive advantage. Further investigation used a two-year time-lag analysis for a long-term perspective. The analysis shows that economic sustainability performance and ESG have a positive impact on competitive advantage. In contrast, ERM effectiveness has no effect on the relationship between economic sustainability performance and competitive advantage. Moreover, additional analysis incorporates the effect of COVID-19 into the main model and shows that the pandemic did not affect competitive advantage; this is consistent with the main results. The findings encourage companies to improve their risk management and sustainability initiatives. The government may also take it into account when developing rules that promote the implementation of sustainable development.

Acknowledgment
This research was supported by the Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia through the Center for Higher Education Fund (BPPT) and Indonesia Endowment Funds for Education (LPDP) for providing the Indonesian Education Scholarship (BPI-Beasiswa Pendidikan Indonesia).

This study investigates the influence of the independent board of commissioners and audit committee on earnings management to achieve earning targets in Indonesian banking. The research sample was drawn from 33 banks listed on the Indonesia Stock Exchange from 2012 to 2022 to evaluate the time frame of the study and its relevance to current banking trends in Indonesia, as well as to examine the data sources used and their reliability. The data analysis method used in this study is a dummy variable regression model. The findings reveal significant insights into the motivations behind earnings management practices. Specifically, this study finds that managers engage in earnings management to meet profit targets, thereby signaling strong performance to stakeholders and potentially securing bonuses. Notably, the influence of corporate governance structures varies: while the independent board of commissioners demonstrates no significant effect on earnings management (p = –0.01), the audit committee plays a pivotal role, significantly influencing earnings management practices (p = –0.017). Moreover, the analysis uncovers that company size has a significant impact on earnings management (p = 0.002), while return on assets (ROA) does not. This study provides empirical evidence demonstrating the efficacy of audit committees in curbing managerial incentives for earnings management to meet targets. Furthermore, by quantifying the influence of corporate governance mechanisms and firm characteristics on earnings management, this study sheds light on key dynamics in the Indonesian banking industry.

Type of the article: Research Article

Abstract
This study examines the effect of contractual, asset pricing, and opportunistic motivations on choosing a fair value or cost model for investment properties, as well as how institutional ownership moderates the influence of these three motivations. This study was conducted on 100 companies with investment property accounts in ten sectors listed on the Indonesia Stock Exchange from 2018 to 2022, including 500 firm-year data observations. The study used logistic regression and moderated regression analysis to test the hypotheses. The results indicate that the three motivations explain the choice between fair value and cost models. However, institutional ownership plays an important moderating role. Contractual motivation and firm size as a proxy are positively related to fair value choice, contradicting political costs, as fair value can enhance asset value, potentially increasing opportunities for third-party financing. Asset pricing incentives and the ratio of market to book value as proxies for information asymmetries do not affect the choice because Indonesia is a developing country where investors tend to exhibit herding bias, meaning their information sources rely on issues rather than financial reports. As for opportunistic motivation, the gain arising from changes in the fair value of investment property for the bonus plan proxy is positively related to the fair value choice. In addition, institutional ownership can strengthen the influence of contractual and opportunistic motivations and weaken the influence of asset pricing motivation on selecting a fair value model.

Type of the article: Research Article

Abstract
This study investigates the impact of greenwashing in ESG disclosure on firms’ ability to create shared value (CSV) by focusing on the mediating roles of disclosure quality and information asymmetry across different institutional contexts. The analysis is based on 391 firm-year observations of non-financial companies listed in Indonesia (277) and Malaysia (114) from 2018 to 2023, based on annual reports, sustainability disclosures, and Refinitiv ESG data. Random-effects panel regressions and bootstrapped mediation tests were used to evaluate direct and indirect effects. The results showed that greenwashing does not exert a significant direct influence on CSV in either country. However, in Malaysia, greenwashing significantly reduces information quality, which, in turn, undermines shared-value creation (indirect effect is significant). In Indonesia, although greenwashing negatively affects information quality, the subsequent link between disclosure quality and CSV is insignificant, resulting in no mediation effect. ESG disclosure quality, as a proxy for information asymmetry, does not mediate the greenwashing–CSV relationship in either country. These findings highlight the cross-country differences shaped by institutional environments: stronger regulatory oversight and stakeholder scrutiny in Malaysia amplify the mediating role of disclosure credibility, whereas weaker governance in Indonesia attenuates its relevance. This study contributes to the sustainability accounting literature by integrating symbolic compliance theory with the CSV framework and provides evidence that the credibility of ESG information is a critical determinant of value creation in emerging economies.

Acknowledgment
We express our gratitude to the Faculty of Economics and Business, Universitas Brawijaya, Indonesia, and the Faculty of Business and Economics, Universiti Malaya, Malaysia, for supporting this research collaboration.