Vol. 14 No. 1 (2026)
March 2026

Articles

Ownership structure, stakeholder pressure, and sustainability transparency: Insights from Indonesia

Published 2026-03-23

  • Rizky Eriandani
    • ,
  • Wahyu Agus Winarno

Rizky Eriandani
University of Surabaya

Wahyu Agus Winarno
Jember University

Abstract

Objective: We investigated the effect of ownership structure, specifically foreign and institutional ownership, on the transparency of sustainability reporting. We also examined how stakeholder pressure, particularly from environmental and customer perspectives, moderates this association, either strengthening or weakening its effects.

Research Design & Methods: We employed a quantitative approach using a purposive sampling method, resulting in 672 firm-year observations from non-financial companies listed on the Indonesian Stock Exchange during the 2020-2023 period. We measured the transparency of sustainability reports using transparency scores from the CSRHub database. We categorised stakeholder pressure into two types: environmental pressure and customer pressure, based on industry classification. We also conducted moderated regression analysis to empirically test the research model.

Findings: The results indicate that we may positively associate higher levels of foreign and institutional ownership with greater transparency in sustainability reports. Stakeholder pressure moderates the impact of foreign ownership on transparency, with environmental pressure reinforcing this relationship, whereas customer pressure weakens it. Moreover, environmental and customer pressures do not significantly moderate the institutional ownership-transparency relationship.

Implications & Recommendations: The findings have significant implications for regulators and prospective investors. They highlight the need for stronger regulatory enforcement and targeted stakeholder engagement to improve environmental, social, and governance (ESG) transparency, particularly in customer-facing and environmentally sensitive sectors in emerging markets.

Contribution & Value Added: This study contributes to the growing body of literature on sustainability reporting transparency by offering empirical evidence from an emerging market context. Using evidence from Indonesia, it offers insights into the interplay between governance structures and stakeholder dynamics, with implications for theory and practice.

Keywords

ownership structure, sustainability reporting, transparency, stakeholder pressure, emerging market

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Author Biography

Rizky Eriandani

Associate Professor at the Faculty of Business and Economics, University of Surabaya, Indonesia. Her research interest includes Sustainability Accounting, Corporate Social Responsibility, Governance and Financial Accounting.

Wahyu Agus Winarno

Associate Professor at Jember University, Indonesia. His research interests include Management Accounting and Information Systems, ERP systems, as well as IT investment and strategy.

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