The Role of Sustainable Reporting as a Mediator Between Risk Management and Financial Performance of Mining Sector Companies in Indonesia Alfistia Maradidya (1*), Sri Anom Amongjati (2)
(1)(2) Universitas Pembangunan Nasional ^Veteran^ Yogyakarta
Jl. SWK Jl. Ring Road Utara No.104, Ngropoh, Condongcatur, Kec. Depok, Kabupaten Sleman, Daerah Istimewa Yogyakarta, 55283, Indonesia
*alfistia.maradidya[at]upnyk.ac.id
Abstract
This study aims to analyze the role of sustainable reporting as a mediator between risk management and the financial performance of companies in the mining sector in Indonesia. Mining companies must implement effective risk management to achieve optimal financial performance when facing complex industry challenges and high risks. Additionally, transparency in sustainable reporting is increasingly important to meet stakeholder demands for environmental, social, and governance accountability. This study uses a quantitative approach by analyzing secondary data from financial and sustainability reports of companies, specifically in the mining sector, listed on the Indonesia Stock Exchange during the 2020 to 2022 period. The research testing is conducted using SPSS. Multiple linear regression models are used to test the direct effect of risk management on financial performance and the indirect effect through sustainable reporting. The results show that companies that implement good risk management tend to have better sustainable reporting, improving their financial performance. This study makes an important contribution to the literature on financial sustainability and management practices in the mining sector. It indicates that mining companies should strengthen their risk management practices and enhance transparency in sustainable reporting to achieve long-term sustainability.
Keywords: Risk Management, Sustainable Reporting, Financial Performance, Mining Sector, Indonesia.
