Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no6.0889

Company Characteristics, Disclosure of Social Responsibility, and Its Impact on Company Performance: An Empirical Study in Indonesia  

HIDAYAH, Nurul (Faculty of Economics and Business, Mercu Buana University)
NUGROHO, Lucky (Faculty of Economics and Business, Universitas Mercu Buana)
PRIHANTO, Hendi (Faculty of Economics and Business, Universitas Mercu Buana)
PRIHANTINI, Dwi (Faculty of Economics and Business, Universitas Mercu Buana)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.6, 2021 , pp. 889-895 More about this Journal
Abstract
Corporate Social Responsibility (CSR) is the obligations that the company must carry out. It follows Law no. 40 of 2007 concerning limited liability company article 74, which regulates the obligation to carry out social and environmental responsibility. CSR is needed so that stakeholders, including the community, know all forms of corporate responsibility to society and the environment. Company characteristics such as company size, company type, and leverage are factors why a company must disclose its CSR. CSR will gain the community's trust so that it will have an impact on improving company performance. The purpose of this study is to obtain evidence and to draw conclusions on whether the factors of company size, leverage, and type of company affect CSR disclosure. The data in this study uses multiple regression analysis with secondary data and purposive sampling. The results suggest that type and leverage significantly affect CSR disclosure; the size variable does not affect CSR disclosure. The CSR variable does not affect return on assets (ROA). Company characteristics variables (type, leverage, and size) do not affect ROA. This research is expected to contribute both academically and practically to increasing the academic community's expertise, competence, and knowledge.
Keywords
Company Characteristics; CSR Disclosure; Financial Performance;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Furqoni, I., & Rosyadi, S. (2019). Collaborative Governance in Corporate Social Responsibility Forum in Banyumas Regency. Jurnal Bina Praja, 21, 209-217. https://doi.org/10.21787/jbp.11.2019.209-217   DOI
2 Fitriani, H., & Setiany, E. (2014). The Effect Of Voluntary Disclosure Of Financial Information And Csr Disclosure On Earning Response Coefficient. Journal of Accounting and Business, 14. https://doi.org/10.20961/jab.v14i2.158   DOI
3 Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability...and how would we know? An exploration of narratives of organisations and the planet. Accounting, Organizations and Society, 35(1), 47-64. https://doi.org/10.1016/j.aos.2009.04.006   DOI
4 Verhees, F. J. H. M., & Meulenberg, M. T. G. (2004). Market Orientation, Innovativeness, Product Innovation, and Performance in Small Firms. Journal of Small Business Management, 42(2), 134-154. https://doi.org/10.1111/j.1540-627X.2004.00102.x   DOI
5 Ahmad, W. W., Manurung, D. T. H., Saputra, K. A. K., & Mustafa, S. G. (2020). Corporate Social Responsibility And Firm Financial Performance: A Case of SME's Sector In Pakistan. International Journal of Environmental, Sustainability, and Social Science, 1(2), 62-74.
6 Carnahan, S., Agarwal, R., & Campbell, B. (2010). The Effect of Firm Compensation Structures on the Mobility and Entrepreneurship of Extreme Performers. Business, 490(September 2009), 1-43. https://doi.org/10.1002/smj
7 Istianingsih, Trireksani, T., & Manurung, D. T. H. (2020). The impact of corporate social responsibility disclosure on the future earnings response coefficient (Asean banking analysis). Sustainability (Switzerland), 12(22), 1-16. https://doi.org/10.3390/su12229671   DOI
8 Iatridis, G. E. (2018). Accounting discretion and executive cash compensation: An empirical investigation of corporate governance, credit ratings and firm value. Journal of International Financial Markets, Institutions and Money, 55, 29-49. https://doi.org/10.1016/j.intfin.2018.02.008   DOI
9 Gunawan, H., Sinaga, B. L., & Sigit Purnomo, W. P. (2019). Assessment of the readiness of micro, small and medium enterprises in using E-money using the unified theory of acceptance and use of technology (UTAUT) method. Procedia Computer Science, 161, 316-323. https://doi.org/10.1016/j.procs.2019.11.129   DOI
10 Hasan, M. M., Nekmahmud, M., Yajuan, L., & Patwary, M. A. (2019). Green business value chain: a systematic review. Sustainable Production and Consumption, 20, 326-339. https://doi.org/10.1016/j.spc.2019.08.003   DOI
11 Paino, H., Razali, F. M., & Jabar, F. A. (2015). The Influence of External Auditor's Working Style, Communication Barriers and Enterprise Risk Management toward Reliance on Internal Auditor's Work. Procedia Economics and Finance, 28(April), 151-155. https://doi.org/10.1016/s2212-5671(15)01094-1   DOI
12 Saputra, K. A. K. (2020). The Performance of the Internal Auditors of the Village Rural Institution. International Journal of Environmental, Sustainability, and Social Sciences, 1(2), 28-35.
13 Kim, H. D., Kim, T., Kim, Y., & Park, K. (2019). Do long-term institutional investors promote corporate social responsibility activities? Journal of Banking and Finance, 101, 256-269. https://doi.org/10.1016/j.jbankfin.2018.11.015   DOI
14 Lee, J. W. (2020). CSR impact on the firm market value: Evidence from tour and travel companies listed on chinese stock markets. Journal of Asian Finance, Economics and Business, 7(7), 159-167. https://doi.org/10.13106/jafeb.2020.vol7.no7.159   DOI
15 Ardiyanti, A., & Supriadi, Y. N. (2018). The Effectiveness Of Internal Control, And The Competency Of Human Resources, On Good Governance Implementation And Its Impact On Fraud Prevention In Village Financial Management In Tangerang District. Journal of Business Management, 8(1), 1-15.
16 Laplane, A., & Mazzucato, M. (2020). Socializing the risks and rewards of public investments: Economic, policy, and legal issues. Research Policy: X, 2(March), 100008. https://doi.org/10.1016/j.repolx.2020.100008   DOI
17 Stefan-Duicu, V. M., & Stefan-Duicu, A. (2015). Global Analysis of the Financial Analyst's Job within a Company. Procedia Economics and Finance, 26(15), 261-267. https://doi.org/10.1016/s2212-5671(15)00847-3   DOI
18 Iqbal, S., Nawaz, A., & Ehsan, S. (2019). Financial performance and corporate governance in microfinance: Evidence from Asia. Journal of Asian Economics, 60. https://doi.org/10.1016/j.asieco.2018.10.002   DOI
19 Izzalqurny, T. R., Subroto, B., & Ghofar, A. (2019). Research in Business and Social Science Relationship between Financial Ratio and Financial Statement Fraud Risk Moderated by. International Journal of Research in Business and Social Science, 8(4), 34-43.   DOI
20 Johnson, T. (2020). Public participation in China's EIA process and the regulation of environmental disputes. Environmental Impact Assessment Review, 81(January), 106359. https://doi.org/10.1016/j.eiar.2019.106359   DOI
21 Castanheira, N., Rodrigues, L. L., & Craig, R. (2010). Factors associated with the adoption of risk-based internal auditing. Managerial Auditing Journal, 25(1), 79-98. https://doi.org/10.1108/02686901011007315   DOI
22 Mironiuc, M., Chersan, I.-C., & Robu, I.-B. (2013). Ethics in Providing Non-Audit Services to Ensure Transparency in Financial Reporting. Procedia - Social and Behavioral Sciences, 81, 474-478. https://doi.org/10.1016/j.sbspro.2013.06.463   DOI
23 Liu, X., & Zhang, C. (2017). Corporate governance, social responsibility information disclosure, and enterprise value in China. Journal of Cleaner Production, 142, 1075-1084. https://doi.org/10.1016/j.jclepro.2016.09.102   DOI
24 Machmuddah, Z., Sari, D. W., & Utomo, S. D. (2020). Corporate social responsibility, innovation and firm value. Journal of Asian Finance, Economics and Business, 7(9), 631-638. https://doi.org/10.13106/jafeb.2020.vol7.no9.631   DOI
25 Mc Williams, A., & Siegel, D. (2018). Corporate social responsibility: A theory of the firm perspective. Business Ethics and Strategy, Volumes I and II, 26(1), 137-147. https://doi.org/10.4324/9781315261102-8
26 Ng, A. W. (2018). From sustainability accounting to a green financing system: Institutional legitimacy and market heterogeneity in a global financial centre. Journal of Cleaner Production, 195, 585-592. https://doi.org/10.1016/j.jclepro.2018.05.250   DOI
27 O'Dwyer, B. (2002). Managerial perceptions of corporate social disclosure: An Irish story. In Accounting, Auditing & Accountability Journal, 15(3). https://doi.org/10.1108/09513570210435898   DOI
28 Sunani, A., Subroto, B., & Prihatiningtias, Y. W. (2015). Do Ethical Climate and Machiavellianism Affect Ethical Perceptions of Earnings Management? Evidence from Indonesia. Global Journal of Business and Social Science Review, 3(01), 131-139.
29 Triyuwono, I. (2016). Taqwa: Deconstructing Triple Bottom Line (TBL) to Awake Human's Divine Consciousness. Pertanika Journal Social Sciences and Humanities, 24, 89-104.
30 Uzun, A. M., & Kilis, S. (2020). Investigating antecedents of plagiarism using extended theory of planned behavior. Computers and Education, 144(January), 103700. https://doi.org/10.1016/j.compedu.2019.103700   DOI
31 Werastuti, D. N. S., Sukoharsono, E. G., Saraswati, E., & Prihatiningsih, Y. W. (2018). Are Competitive Strategies and Strategic Alliances Role In Improving Sustainability Performance? Journal of Environmental Management and Tourism, 9(7), 1498-1511
32 Yusuf, M., & Mulyani, S. D. (2020). Responsibility As a Predictor of Aggressiveness Tax on Issuers in. International Journal of Business, Economics and Law, 23(1), 430-440.
33 Perdana, M. C., Hadisusanto, S., & Purnama, I. L. S. (2020). Implementation of a full-scale constructed wetland to treat greywater from tourism in Suluban Uluwatu Beach, Bali, Indonesia. Heliyon, 6(10), e05038. https://doi.org/10.1016/j.heliyon.2020.e05038   DOI
34 Deegan, C. (2013). The accountant will have a central role in saving the planet really? A reflection on "green accounting and green eyeshades twenty years later." Critical Perspectives on Accounting, 24(6), 448-458. https://doi.org/10.1016/j.cpa.2013.04.004   DOI
35 Farimani, A., & Yazdi, A. F. (2015). Impact of institutional ownership persistence on corporate performance of firms listed on the Tehran stock exchange. Advances in Environmental Biology, 9(4), 541-554. https://doi.org/10.6007/IJARAFMS/v5-3/1821   DOI
36 Agustia, D., Dianawati, W., & Indah, D. R. A. (2019). Managerial Ownership, Corporate Social Responsibility Disclosure and Corporate Performance. Management of Sustainable Development, 10(2), 67-71. https://doi.org/10.2478/msd-2019-0011   DOI
37 Atmadja, A. T., Saputra, K. A. K., Tama, G. M., & Paranoan, S. (2021). Influence of Human Resources, Financial Attitudes, and Coordination on Cooperative Financial Management. Journal of Asian Finance, Economics and Business, 8(2), 563-570. https://doi.org/10.13106/jafeb.2021.vol8.no2.0563   DOI
38 Axjonow, A., Ernstberger, J., & Pott, C. (2018). The Impact of Corporate Social Responsibility Disclosure on Corporate Reputation: A Non-professional Stakeholder Perspective. Journal of Business Ethics, 151(2), 429-450. https://doi.org/10.1007/s10551-016-3225-4   DOI
39 Bandiyono, A. (2020). The Effect of Good Corporate Governance and Political Connection on Value Firm. Jurnal Akuntansi, 23(3), 333. https://doi.org/10.24912/ja.v23i3.599   DOI
40 Gray, B. J., Matear, S., & Matheson, P. K. (2002). Improving service firm performance. Journal of Services Marketing, 16(3), 186-200. https://doi.org/10.1108/08876040210427191   DOI
41 Rupp, D. E., Ganapathi, J., Aguilera, R. V., & Williams, C. A. (2006). Employee reactions to corporate social responsibility: An organizational justice framework. Journal of Organizational Behavior, 27(4), 537-543. https://doi.org/10.1002/job.380   DOI
42 Reverte, C. (2009). Determinants of corporate social responsibility disclosure ratings by Spanish listed firms. Journal of Business Ethics, 88(2), 351-366. https://doi.org/10.1007/s10551-008-9968-9   DOI