The Effect of Stakeholder Pressure on Sustainability Disclosure: The Moderating Role of Business Risk

Susantika; Imam Hadiwibowo; Mochammad Fachrul Riztin

doi:10.24843/EJA.2026.v36.i07.p08

Authors

Susantika Faculty of Economics and Business, Universitas Muhammadiyah Cirebon, Indonesia
Imam Hadiwibowo Faculty of Economics and Business, Universitas Muhammadiyah Cirebon, Indonesia
Mochammad Fachrul Riztin Faculty of Economics and Business, Universitas Muhammadiyah Cirebon, Indonesia

DOI:

https://doi.org/10.24843/EJA.2026.v36.i07.p08

Keywords:

Stakeholder Pressure, Sustainability Disclosure, Business Risk, High-Profile Industries

Abstract

This study examines the effect of stakeholder pressure on sustainability disclosure and investigates the moderating role of business risk. The study uses secondary data obtained from annual reports and sustainability reports of energy. industrials. and consumer non-cyclicals companies listed on the Indonesia Stock Exchange during 2021–2025. A total of 21 companies with 105 firm-year observations were selected using purposive sampling. Sustainability disclosure was measured using the Global Reporting Initiative (GRI) Standards 2021, while business risk was proxied by the Coefficient of Variation (CV) of EBIT. Data were analyzed using a Fixed Effect Model and Moderated Regression Analysis. The findings reveal that stakeholder pressure has a significant negative effect on sustainability disclosure. Furthermore. business risk does not moderate the relationship between stakeholder pressure and sustainability disclosure. These results indicate that increasing stakeholder pressure does not necessarily encourage broader sustainability disclosure practices among high-profile industries.

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