Keywords
political
military connection
How to Cite
Abstract
Sustainability reporting, a tool for gaining and maintaining legitimacy, plays a crucial role in shaping the company's reputation. This study aims to examine the role of the board of commissioners and directors, who have political affiliations and military backgrounds, in enhancing the impact of sustainability reporting quality on a company's reputation. This study was conducted on 111 companies listed on the Indonesia Stock Exchange for the 2016–2022 period, with dynamic panel data unbalanced with observations of 389. The generalised method of moment (GMM) is the analysis technique used. We conduct robustness tests by comparing reputation with another measurement, specifically market capitalisation. The study's findings show that political connections strengthen the influence of sustainability reporting quality on reputation. Meanwhile, military connections weaken the influence of sustainability reporting quality on reputation. This research model is robust because the test results, which replace reputation measurement with market capitalisation, show the same results.
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