Hasil Uji Plagiasi: Adaption of SDGs Related Financial Accounting Standart and Its Relevant Cost

Abstract

Background–Sustainable Development Goals (SDGs) represents 17 goals with 169 achievements initiated with the aim to benefit humans and the earth. It takes the role of all parties to be able to realize the SDGs, especially the private sector must be willing to take an active role in achieving SDGs. However there are still many companies which still seeing SDGs as a trend that is only used solely for the company to look good but not really synergize the company's goals with the goals of SDGs. Purpose and Methodology–The purpose of this study is to investigate how the impact of the adoption of SDGs-related Indonesia’s financial accounting standards (PSAK) on net profits of mining companies listed in Indonesian Stocks Exchange (IDX). The study employs a quantitative research approach and multiple linear regression analysis with the semi-log type Ordinary Least Squares (OLS) estimation method. The unit of analysis in this study are 48 companies from IDX’s mining sector in the period 2008 to 2017 with a 10-year observation period. Findings–Although the adoption SDGs-based accounting standards on companies listed in Indonesian Stocks Exchange (IDX) has impacted on their respective net profit, it, however, brings companies more sustainably both in terms of financial and operational aspects. Internally, the impact of adoption boosts employees’ work protection, while externally it enhances investors’ confidence that entities are managed in a sustainable way. Research Limitations–limited information is available companies SDGs disclosure on companies’ notes on financial statements. Originality/value – The study presents the impacts of the adoption of SDGs-related financial accounting standards and its relevant costs on the companies’ financial statements that is rarely researched in Indonesian context.