Sustainability Reporting: The Mediating Role of Profitability in Corporate Governance and Leverage

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Analysis shows leverage negatively affects sustainability reporting in firms, highlighting profitability's mediating role.

Profitability significantly enhances sustainability report disclosure, linking capital structure decisions to reporting practices.
Institutional ownership and leverage negatively affect sustainability report disclosure, while board of directors has no significant impact.
Panel data regression analyses were performed on a sample of 25 firms from the Kompas 100 Index in Indonesia for the 2019 to 2024 period.
Findings suggest that while leverage impacts profitability, its negative effect on sustainability reporting is mediated by profitability.

Aryani et al. (2025) studied this question.

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