Abstract

This study aims to analyze the effect of board characteristics, ownership structure and company characteristics on CSR disclosure. The population of this study are non-financial companies that listed on the Indonesia Stock Exchange (IDX) which issues sustainability reports separately from the annual report for the year 2017-2018. Based on the purposive sampling method as a method of data collection, a total of 20 non-financial companies have published sustainability reports separately from the annual reports for 2017 and 2018 respectively. Multiple regression analysis used to test the research hypotheses. The results of this study indicate that the proportion of women on the board, board of director ownership concentration, profitability and leverage negatively affect the CSR, while the rest of variables does not affect the CSR disclosure.
 Keywords: CSR disclosure; board characteristics; ownership structure; company characteristics; sustainability report

Highlights

  • The development of businesses from each year has caused many issues regarding business activities carried out by companies

  • This study aims to analyze the effect of board characteristics, ownership structure and company characteristics on CSR disclosure

  • This study contributes in proving that differences in corporate governance between countries, the sample and the study period do not influence the characteristics of corporate governance, namely the board and ownership structure in influencing the corporate social responsibility disclosure

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Summary

Introduction

The development of businesses from each year has caused many issues regarding business activities carried out by companies. One of that issues is Corporate Social Responsibility This issue is based on the demands from the stakeholders which are, investors, debtholder, the society, and the government towards businesses so that they will focus on their economic successes through their profits, and concern themselves with the impact from their business activities. Siregar & Bachtiar (2010) added that these days, many organizations think that reports of companies’ financial performances will not satisfy the stakeholders. This social responsibility is used by companies to balance out their financial aims, which is profit with their non-financial aims, one of them is to act to the interest of the people, environment, employees and the customers where the company is running its business

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