Comprehensive Corporate Reporting in Emerging Economies: The Role of Political Connections and Corporate Governance in Indonesia

This study examines the influence of Political Connections (PC), Corporate Governance (CG), and their interaction on the adoption of Comprehensive Corporate Reporting (CCR) in Indonesia, with a focus on the country's readiness to adopt international sustainability standards. In response to increasing stakeholder demands, companies are increasingly expected to disclose financial and non-‎financial information with transparency and accountability. However, implementation gaps remain, especially among companies with ‎varying political affiliations and governance structures. A quantitative method was used, using panel data from agro-industrial ‎and high-polluting companies listed on the Indonesia Stock Exchange from 2019 to 2023, resulting in 295 observations. Secondary data was ‎obtained from annual reports, sustainability reports, and publicly available ESG indicators. The analysis applies multiple linear regression to ‎evaluate the determinants of CCR and to test the moderating role of political connections in the relationship between corporate governance ‎and CCR practices. The results show that strong corporate governance encourages higher levels of CCR, while political connections may ‎hinder the level of CCR. On the other hand, when political connections interact with governance mechanisms that support sustainability ‎reporting behavior. The findings contribute to providing empirical evidence on factors affecting the level of CCR, and provide practical ‎recommendations for policymakers, regulators, and corporate actors in improving Indonesia's readiness to comply with international ‎sustainability reporting disclosure standards‎.