Examining the Nexus of Governance, Firm’s Characteristics and CSR Disclosure in Highly Polluted Industries

Abstract

This study seeks to examine the effect of corporate governance and firm’s characteristics on corporate social responsibility disclosure (CSRD) of highly polluted industries. The sample of this study consisted of 250 data from 125 companies of basic material, chemicals, and energy sectors listed in the Indonesia Stock Exchange from 2020-2021. The result shows that ownership concentration has a negative effect on CSR disclosure. Audit committee and firm’s size positively affect corporate social responsibility disclosure. Meanwhile, the board size and leverage do not affect CSR disclosure. This study provides policy implications to identify governance systems and firm’s characteristics at increasing CSR awareness. The paper highlights the research context of the highly polluted industry, indicating a specific sector with unique challenges and implications for CSR. By focusing on these industries, the research aims to provide insights into opportunities associated with CSR disclosure in highly polluting sectors.