Examination of corporate governance on the sustainability reporting in mining industry: The relevance of board commissioners and audit committee

Authors

  • Yesisca Hana Gunawan Departement of Accounting, Institut Bisnis dan Informatika Kesatuan, Jl. Ranggagading No. 1, 16123 Kota Bogor, Jawa Barat, Indonesia.
  • Sutarti Sutarti Departement of Accounting, Institut Bisnis dan Informatika Kesatuan, Jl. Ranggagading No. 1, 16123 Kota Bogor, Jawa Barat, Indonesia.
  • Mohd Taufik Mohd Suffian Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia.Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia.
  • Salwa Zolkaflil Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia.

DOI:

https://doi.org/10.24200/jonus.vol10iss2pp655-677

Abstract

Purpose: Air pollution in Indonesia poses serious health risks, as current air quality fails to meet WHO standards. This issue impacts environmental, social, and economic conditions, raising public concern over corporate activities. While prior research has examined the relationship between corporate governance and sustainability reporting, results have been inconsistent. This study aims to investigate this association specifically in Indonesia's mining sector.

Methodology: Corporate governance was evaluated using board characteristics (size, independence, gender diversity, and financial expertise) and audit committee attributes (size, financial expertise, and meeting frequency). Sustainability reporting was scored from 0 to 4, with the highest score reflecting assurance by an external provider. The study analyzed 20 mining companies listed on the Indonesia Stock Exchange from 2017 to 2022 using multiple regression analysis.

Findings: Board commissioners and the audit committee positively impacted sustainability reporting, except for board size and gender diversity which have negatively impacted the sustainability reporting. However, only board independent, board expertise and audit committee meetings have a significant influence on sustainability reporting.

Contributions: The findings suggest that the board of commissioners and audit committee do not significantly influence the social, economic, and environmental outcomes of company activities. Companies are advised to restructure their boards to enhance oversight and improve sustainability reporting.

Keywords: Corporate governance, sustainability report, environmental pollution, mining industry, Indonesia stock exchange.

Author Biographies

  • Yesisca Hana Gunawan, Departement of Accounting, Institut Bisnis dan Informatika Kesatuan, Jl. Ranggagading No. 1, 16123 Kota Bogor, Jawa Barat, Indonesia.

    Yesisca Hana Gunawan is a graduate of the Bachelor of Accounting Program at Institut Bisnis dan Informatika Kesatuan (IBI Kesatuan), Bogor, Indonesia. She has a strong interest in financial reporting, taxation, and auditing. During her undergraduate studies, she was actively involved in academic projects and student research related to SME accounting practices and corporate financial transparency. She continues to develop her expertise through professional and academic engagement in the accounting field.

  • Sutarti Sutarti, Departement of Accounting, Institut Bisnis dan Informatika Kesatuan, Jl. Ranggagading No. 1, 16123 Kota Bogor, Jawa Barat, Indonesia.

    Sutarti is a senior lecturer at the Accounting Study Program, Institut Bisnis dan Informatika Kesatuan (IBI Kesatuan), Bogor, Indonesia. She holds a PhD in Accounting from Universitas Indonesia. Her research focuses on financial accounting, auditing, corporate governance, and sustainability reporting. She is actively involved in academic research and community-based projects, particularly those related to SME sustainability and development. Her articles have been published in reputable international journals indexed by Scopus as well as nationally accredited journals.

  • Mohd Taufik Mohd Suffian, Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia.Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia.

    Mohd Taufik Mohd Suffian is a Senior Accounting Lecturer at Universiti Teknologi MARA (UiTM), Malaysia. He holds a Ph.D in Financial Criminology from UiTM Malaysia and a professional qualification from the Chartered Institute of Management Accountants (CIMA), United Kingdom. His area of interests is in the Financial Criminology, Corporate Governance and Taxation. His articles have been published in reputable international journals indexed by Scopus, Web of Science, ERA as well as nationally accredited journals. He can be reached at taufik815@uitm.edu.my.

  • Salwa Zolkaflil, Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia.

    Salwa Zolkaflil is a research fellow at Accounting Research Institute (ARI), Universiti Teknologi MARA (UiTM) Shah Alam. She holds a Doctor of Philosophy (Accounting) degree from Universiti Teknologi MARA (UiTM) Malaysia, with the title Factors and Challenges Influencing Money Laundering Investigation Outcome among the Law Enforcement Agencies in Malaysia. Her research focuses on money laundering, money mule, fraud prevention and auditing. Currently, she is interested in researching about financial crime such as terrorism financing and money mule. She can be reached through her e-mail, salwazolkaflil@uitm.edu.my

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Published

2025-07-31

Issue

Vol. 10 No. 2: Journal of Nusantara Studies(JONUS)

Section

Articles

How to Cite

Examination of corporate governance on the sustainability reporting in mining industry: The relevance of board commissioners and audit committee. (2025). Journal of Nusantara Studies (JONUS), 10(2), 655-677. https://doi.org/10.24200/jonus.vol10iss2pp655-677