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Vol 40 No 2 (2025): May

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Oct 4, 2023
Accepted
Aug 30, 2024
Published
May 28, 2025
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The Role of Corporate Governance, Type of Ownership, and Capital Structure, in the Achievement of Sustainable Development Goals

https://doi.org/10.22146/jieb.v40i2.10086
Surifah
surifah.ifah@gmail.com
Fakultas Bisnis dan Humaniora, Universitas Teknologi Yogyakarta, 55165, Indonesia
Krismiaji
Politeknik YKPN, Yogyakarta, 55222, Indonesia

Corresponding Author(s) : Surifah

surifah.ifah@gmail.com

Journal of Indonesian Economy and Business, Vol 40 No 2 (2025): May

Abstract

Introduction/Main Objective: This study presents research that makes a theoretical contribution to the literature on the achievement of sustainable development goals (SDGs), and provides empirical evidence of the role of corporate governance (CG), type of ownership, and capital structure of companies in Indonesia in achieving the SDGs. Background Problem: This research is motivated by the phenomenon that the business sector plays major roles in economic growth, damage to the natural environ­ment—as well as its preservation—well the social life of local and global communities. The active involvement of the business world is needed to support the achievement of the SDGs. This research is important because the president directors and president commissioners (as proxies for CG) are the parties that play the biggest roles in their companies in achieving the SDGs. In addition, owners can pressure directors and commissioners to commit to achieving SDGs. A capital structure that reflects the company's financial flexibility also plays a role in realizing the SDGs. Novelty: This research uses unique proxies for the SDGs and CG variables. The SDGs are proxied using the SDG index, covering 17 SDGs fields, consisting of 101 items.CG is proxied by the competence of president directors and president commissioners. Competence is measured by level of education, work experience, and global insight. In addition, research examining the effect of the four types of ownership and capital structure on the SDGs is still very limited. This research was conducted on all companies listed on the Indonesia Stock Exchange during the period 2017 to 2021. The samples were taken purposively, with certain criteria. The dependent variable is SDGs, while the independent variables are CG, type of ownership, and capital structure. The analysis technique uses multiple linear regression. Findings/results: The research proves that the president commissioner, government, and individual shareholders, as well as leverage have a significant positive effect on SDGs disclosure. Meanwhile, domestic institutional share­holders, capital structure, and company size negatively affect SDG’s disclosure. Conclusion: The results show that the president commis­sioner, government, and individual shareholders become the key shareholders who significantly affect the company’s SDG disclosure policy. Thus, the results confirm and support the stakeholder theory and stewardship theory.

Keywords

SDGs corporate governance type of ownership capital structure
Surifah, & Krismiaji. (2025). The Role of Corporate Governance, Type of Ownership, and Capital Structure, in the Achievement of Sustainable Development Goals. Journal of Indonesian Economy and Business, 40(2), 233 -. https://doi.org/10.22146/jieb.v40i2.10086
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Author Biographies

Surifah, Fakultas Bisnis dan Humaniora, Universitas Teknologi Yogyakarta, 55165, Indonesia

Surifah is a lecturer and researcher in the Accounting Department at Universitas Technology Yogyakarta. She holds a Bachelor’s degree in Accounting from the Islamic University of Indonesia, a Magister Sain (M. Si.) in Accounting from Universitas Gadjah Mada, and a Doctorate in Accounting from Universitas Sebelas Maret, Surakarta, Indonesia. She is actively involved in collaborative research with fellow academics in the same field. Her research findings have been published in numerous national and international journals, as well as presented at international academic conferences. Her primary research interests encompass financial accounting, the Sustainable Development Goals (SDGs), corporate governance, state-owned enterprises, and taxation.

Krismiaji, Politeknik YKPN, Yogyakarta, 55222, Indonesia

Krismiaji is a lecturer and researcher at the Department of Accounting, Politeknik YKPN, Yogyakarta, Indonesia where he has been a faculty member since 1987. He earned his Bachelor’s degree in Accounting at the Faculty of Economics, Gadjah Mada University, Indonesia. He did his Master’s degree in Financial Accounting at the School of Accountancy, Business & Economics Department, University of Kentucky, Lexington, USA. Besides, he completed his Ph.D. from Sebelas Maret University, Indonesia. His research interests lie in the areas of corporate finance, Corporate Governance, ESG, and Accounting. He has collaborated actively with other researchers from similar fields in many research projects. He successfully published many articles in different top-tier international journals.

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