Connecting Financial Statements And Sustainability Reports: A Literature Review Of Accounting And Sustainability Disclosure

Abstract

Since the enactment of Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017, sustainability reports have become a complement to financial statements in Indonesia, and investors have increasingly examined both reports together to assess corporate performance. However, empirical evidence regarding the relationship between financial reporting and sustainability disclosure remains inconsistent and fragmented across sectors. This review aims to synthesize empirical evidence on the relationship between financial statement indicators and sustainability disclosures among companies listed on the Indonesia Stock Exchange (IDX). Employing a systematic literature review approach, four national journal articles published in 2026 were selected based on sample size, comprehensiveness of statistical testing, and data consistency, and subsequently analyzed through narrative thematic synthesis. The findings indicate that sustainability disclosure is positively associated with Return on Assets (ROA), Return on Equity (ROE), and firm value, while negatively associated with Non-Performing Loans (NPL). However, no significant associations were found with Operating Expenses to Operating Income (BOPO) or Capital Adequacy Ratio (CAR). Environmental performance and firm size were negatively associated with profitability and firm value, whereas the frequency of audit committee meetings positively influenced sustainability disclosure. This review demonstrates that the relationship between financial statements and sustainability reports is selective and varies across financial indicators. These findings provide a foundation for future research incorporating longer observation periods, measures of disclosure quality, and research designs that address potential endogeneity.