Sustainability Reporting by Sharia-Compliant Companies in Asia Pacific: Do Profitability and Corporate Governance Attributes Matter?

The purpose of this research is to analyze the potential role of profitability and corporate governance (board independence and audit committee meeting) in sustainability reporting by sharia-compliant companies listed at FTSE Russell sharia compliant index. The samples of this study consist of 19 Leading Companies listed at FTSE Russell sharia compliant index in Asia Pacific from 2016- 2020. The total observation are 95 data containing of the annual and sustainability reports of the leading companies were examined using multiple linear regression. Interestingly, the findings show that the corporate governance (board independence and audit committee meeting), and profitability have no association with sustainability reporting disclosure. This finding may suggest the less effectiveness of corporate governance attributes in supporting the sustainability reporting. Additionally a good profitability may unlikely motivate the companies to report on sustainability.