Financial slack, CSR disclosure, and carbon emission disclosure: The moderating role of independent commissioners in Indonesian energy firms

The Influence of Managerial Ownership and Corporate Social Responsibility (CSR) Disclosure on Company Value (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesian Stock Exchange for the 2017-2019 Period). To determine the influence of managerial ownership and Corporate Social Responsibility (CSR) disclosure on the value of manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (BEI) for the 2017-2019 period. This research method uses multiple linear analysis methods. Managerial ownership has a significant negative influence on firm value partially. Disclosure of Corporate Social Responsibility (CSR) has a significant positive influence on company value partially. Managerial ownership and disclosure of Corporate Social Responsibility (CSR) have a significant positive influence simultaneously on company value. The managerial implications of this research explore the impact of managerial ownership and disclosure of Corporate Social Responsibility (CSR) on increasing company value. Managerial ownership plays an important role in aligning interests between management and shareholders, which in turn can motivate management to improve company performance. On the other hand, CSR disclosure not only builds a positive image of the company but also increases stakeholder trust and loyalty.

Disclosing the Corporate Social Responsibility (CSR) report in the company’s financial statements is considered to be beneficial such as enhancing reputation or enhancing corporate image. Increased reputation of the company will bring multiple benefits in the long term such as to increase market share, profitability, and corporate value. The purpose of this study are to examine the CSR disclosure of the companies that listed on BEI (LQ45), to examine the profitability rate of the companies that listed on BEI (LQ45), and to analyze the effect between CSR disclosure and profitability rate of the companies that listed on BEI (LQ45). The profitability rate in this study proxied with ROA and ROE. The research method that used was description verification with quantitative approach and using simple linear regression analysis test. Data collection technique that used was literature search. The populations in this study are the companies that listed on Indonesian Stock Exchange (BEI) which is included in the stock index LQ45 list during 2014-2016. The sampling technique that used was purposive sampling so there are 12 companies that fulfill the specified criteria. The results of this study showed that the CSR disclosure on the companies that listed on BEI (LQ45) from 2014 to 2015 the average decreased, while from 2015 to 2016 average increased. The same results happened to profitability rate that proxied by ROA and ROE. There is no effect between CSR disclosure and profitability rate (ROA and ROE).

General Background: Corporate social responsibility (CSR) disclosure reflects a company’s accountability to societal and environmental concerns, making it essential to explore the factors influencing such disclosure. Specific Background: This study investigates CSR disclosure in the context of non-financial disclosures by companies listed on the Indonesia Stock Exchange (IDX), providing empirical evidence and theoretical insights. Knowledge Gap: While previous research has examined CSR disclosure, the interplay between financial pressure, firm size, financial performance, regulatory compliance, and environmental impacts remains underexplored. Aims and Methods: The study aims to analyze how these factors collectively influence CSR disclosure. Using secondary data from the Financial Services Authority and the IDX, a quantitative approach is applied with path analysis conducted via SPSS software. Results: Financial pressure significantly affects compliance with financial regulations. Firm size impacts environmental outcomes, which, in turn, along with firm size, drive CSR disclosure. Environmental impact mediates the relationship between firm size and CSR disclosure. Novelty: This study uniquely identifies the mediating roles of financial performance and environmental impact in the relationships among financial pressure, regulatory violations, firm size, and CSR disclosure. Implications: CSR embodies an organization's responsibility to address the societal and environmental effects of its activities, advocating ethical, transparent practices that foster sustainable development and community well-being.

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

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This study was administered to analyze and obtain empirical evidence regarding Corporate Social Responsibility (CSR) disclosure on tax aggressiveness and the impact of corporate CSR disclosure and tax aggressiveness on investor reactions. The population of this study were manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2016-2018. Samples were 147 companies selected using purposive sampling technique. Path analysis was performed to analyze the data of this study. The results of this study showed that CSR disclosure negatively affected the tax aggressiveness and CSR affected investor reactions. Further, tax aggressiveness did not affect investor reactions. In addition, CSR disclosure and tax aggressiveness did not share simultaneous influence on investor reactions. Keywords: CSR Disclosure, tax aggressiveness, Investor Reaction, Profitability, Company Size and Leverage DOI: 10.7176/RJFA/11-22-10 Publication date: November 30 th 2020

PurposeThis study aims to investigate the extent and nature of corporate social responsibility (CSR) disclosure in the context of Jordan. It also empirically examines the impact of board composition variables (size, independent [non-executive] directors, CEO/chairman duality, age and gender) and ownership structure variables (board ownership concentration, institutional ownership and foreign ownership) on CSR disclosure level.Design/methodology/approachA CSR disclosure index is constructed, and content analysis is used to analyze the extent and nature of CSR disclosure in the annual reports of Jordanian manufacturing companies listed on the Amman Stock Exchange (ASE) during the period (2013-2015). Regression analysis using panel data is undertaken to analyze the potential impact of board composition and ownership structure on CSR disclosure level.FindingsThe results reveal that, on average, a listed Jordanian manufacturing company has disclosed 30.8 per cent of the 42 items of CSR information included in the disclosure index. In addition, there was a very slight improvement in the CSR disclosure over the study period. These results suggest there is considerable room for improvement in CSR disclosure. The regression analysis identified board size to be significantly and positively associated with CSR disclosure level. On the other hand, the percentage of independent (non-executive) directors on the board, duality of CEO and chairman positions, director’s age, board ownership concentration and the percentage of shares outstanding held by institutional shareholders were found to have had a significant negative impact on CSR disclosure level.Originality/valueThe study contributes to the literature on CSR practice and disclosure in various ways. First, it demonstrates the extent to which listed companies in developing countries, such as Jordan, take their social role seriously. Second, the study adds to the existing literature on the potential impact of board composition and ownership structure on CSR disclosure by using new variables that have not been tested before using Jordanian data. Third, the study is anticipated to provide feedback to Jordanian regulators in the Jordan Securities Commission and the ASE on the adequacy of current regulations on corporate disclosure requirements in Jordan. Finally, the study raises some issues of interest to other researchers who are currently or intend to conduct research in this area.

The objectives of this study are; firstly, to examine the effect of profitability on Corporate Social Responsibility (CSR) disclosure; secondly, to examine the effect of leverage on CSR disclosure; thirdly, to examine the effect of company size on CSR disclosure; fourth, to find out whether the effect of leverage on CSR disclosure will be more significant with the inclusion of the variable of majority ownership as moderating variable; fifth, to find out whether the effect of profitability on CSR disclosure will be more significant with the inclusion of the variable of majority ownership as moderating variable. The sample was taken using a purposive sampling technique with 50 manufacturing companies during the period 2011- 2012 which fulfilled the required criteria as the research sample. They were analyzed moderation regression analysis approach. It shows that, first, profitability has positive effect on CSR disclosure; second, leverage has no effect on CSR disclosure; third, company size has an effect on CSR disclosure; fourth, majority ownership moderates the effect of leverage on CSR disclosure; fifth, majority ownership does not moderate the effect of profitability on CSR disclosure. Some limitations stated in this study are expected to be used as references for the improvement of similar studies in the near future.

Sustainability has become one of the key hubs around which the actions conducted by international economic operators revolve. This new perspective, perhaps better defined as “requirement”, given its specific weight in the global context, needs analysis of firms’ behaviours with regard to sustainability disclosure and the corporate governance (CG) mechanisms influencing the information released. Board of directors and CSR committee are critical CG mechanisms in that sense. This paper aims at investigating the relationship between specifics board characteristics and corporate social responsibility (CSR) disclosure. More specifically, the study investigates the relation between board independence and CSR disclosure, and how this relationship is moderated by the presence of a CSR committee. The analysis has been conducted on a sample of 119 Italian non-financial listed companies. The results obtained, using OLS regression method, show the existence of a positive and significant relationship between board independence and CSR disclosure. Moreover, the findings reveal that the presence of a CSR committee positively moderates the previous relationship, showing the complementary role played by board independence and CSR committee. These results have critical implications for boards, managers, regulators, and policymakers operating to define better corporate governance mechanisms, highlighting the importance of the joint effect of board independence and CSR committee in improving firms’ CSR disclosure practices. Our study also has relevant implications for researchers, evidencing the need to study the complementary effects of different CG mechanisms, rather than the single effect, on influencing CSR disclosure.

Purpose: This study aims to examine the influence of environmental performance, risk minimization, firm size, public share ownership, and audit committee on Corporate Social Responsibility (CSR) disclosure. The measurement of Corporate Social Responsibility is felt in the global reporting initiatives (GRI)-G4 index which is seen from the company's annual report. Methodology: This research adopts a quantitative approach. The population of the study consists of industrial sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022. The sampling technique used is purposive sampling and got 13 companies, with 4 years observation. So the total sample studied is 52 data. Data analysis was performed using SPSS. The data have been collected analyzed by using the classical assumption test and then tested the hypothesis by multiple linear regression methods with the F test, coefficient of determination, and t-test. Results: This study reveals that firm size and audit committee variables have a significant effect on CSR disclosure. Meanwhile, environmental performance, risk minimization, and public share ownership variables do not have a significant effect on CSR disclosure. Applications/Originality/Value: Corporate Social Responsibility (CSR) is a form of environmental and social responsibility performed by the company to their stakeholders due to the impact of operating activities. CSR information disclosed in the annual report is still not specific because the social responsibility disclosure policy in Indonesia is still voluntary, so in the practice there is still a lot of variability in the breadth of items disclosed and issues arise due to companies that are not taking CSR activities seriously. Therefore, this research is expected to be a guide for policy makers in making regulations and companies as actors of CSR activities to pay more attention to the social and environmental impacts of business activities and disclose them transparently.

Purpose – Corporate social responsibility (CSR) disclosure is receiving increased attention from the mainstream accounting research community. In general, this recently published research has failed to engage significantly with prior CSR-themed studies. The purpose of this paper is threefold. First, it examines whether more recent CSR reporting differs from that of the 1970s. Second, it investigates whether one of the major findings of prior CSR research – that disclosure appears to be largely a function of exposure to legitimacy factors – continues to hold in more recent reporting. Third, it examines whether, as argued within the more recent CSR-themed studies, disclosure is valued by market participants. Design/methodology/approach – Using Fortune 500 data from the late 1970s (from Ernst & Ernst, 1978) and a more recent sample (2010), the authors identify differences in CSR disclosure by computing adequate measures in terms of disclosure breadth and comparing them for any potential changes in the influence of legitimacy factors between 1977 and 2010. In the second stage of the analysis, the authors use a standard valuation model to compare the association between CSR and firm value between the two time periods. Findings – The authors first find that the breadth of CSR disclosure increased significantly, with respect to both environmental and social information provision. Second, the authors find that the relationship among legitimacy factors and CSR disclosure does not differ across the two time periods. However, the analysis focusing on environmental disclosure provides evidence that industry membership is less powerfully related to differences in reporting, but only for the weighted disclosure score. Finally, the results indicate that CSR disclosure, in apparent contrast to the arguments of the more recent mainstream investigations, is not positively valued by investors. Research limitations/implications – The authors explore changes in CSR disclosure only for industrial firms and as such the authors cannot generalize findings to companies in other industries. Similarly, the authors focus only on companies in the USA while different relationships may hold in other countries. Further, the disclosure metrics are limited by the availability of firm-specific information provided by Ernst & Ernst. Limitations aside, however, the findings appear to suggest that the failure of the new wave of CSR research in the mainstream accounting community to acknowledge and consider prior research into social and environmental accounting is potentially troublesome. Specifically, recent CSR disclosure research published in mainstream journals often lends credence to voluntary disclosure arguments that ignore previous contradictory findings and well-established alternative explanations for observed empirical relationships. Practical implications – This paper provides supporting evidence that the unquestioned acceptance by the new wave of CSR researchers that the disclosure is about informing investors as opposed to being a tool of legitimation and image enhancement makes it less likely that such disclosure will ever move meaningfully toward transparent accountability. Originality/value – The study suggests that CSR disclosure, while used more extensively today than three decades ago, may still largely be driven by concerns with corporate legitimacy, and still fails to provide information that is relevant for assessing firm value. As such, the failure of the mainstream accounting community to acknowledge this possibility can only hinder the ultimate development of better accountability for all of the impacts of business.

This study aims to determine the effect of managerial ownership, profitability, leverage, and tax aggressiveness moderated by firm size on Corporate Social Responsibility (CSR) disclosure. The population in this study comprises energy sector companies listed on the Indonesia Stock Exchange (IDX), which have a capitalization value of more than 5,000,000,000. Determining the minimum number of samples using Slovin theory shows that 33 minimum samples must be met. The method of determining using purposive sampling with the criteria of energy companies listed on the IDX and issuing annual and sustainability reports in 2019-2021. The results showed that managerial ownership has a significant effect on CSR disclosure. Profitability has no significant effect on CSR disclosure. Leverage has a significant effect on CSR disclosure. Tax aggressiveness has a significant effect on CSR disclosure. Managerial ownership, profitability, leverage, and tax aggressiveness have significant simultaneous effects moderated by firm size on CSR disclosure. Future studies are anticipated to use a bigger sample size because this research is still only applicable to one industry, allowing the findings to reflect a wider range of businesses. Additionally, institutional ownership or shares as illustrations of effective corporate management can be introduced as additional variable factors, which may affect the company's CSR disclosure.

Purpose– The paper aims to examine the determinants of corporate social responsibility (CSR) disclosures in the annual reports of Malaysian public listed companies (PLCs). In 2006, Bursa Malaysia Berhad (BMB) launched its CSR Framework (effective in 2007) which is supposed to guide the Malaysian PLCs’ CSR disclosures. It is believed that this CSR framework may influence CSR disclosures to be more systematic, yet there is no evidence whether this framework influences the extent and quality of CSR disclosures. Thus, this study examines this area of research. The study also tests the influence of award on CSR disclosures.Design/methodology/approach– CSR disclosure checklist was developed to analyse the extent and quality of CSR information disclosures in the year 2008 annual reports of the Malaysian PLCs.Findings– Malaysian PLCs disclose more CSR information related to community and environment than workplace and marketplace CSR themes. On the other hand, the quality of disclosure practices was minimal when it is compared to the extent of disclosure practices. Finally, the study also found that the award’s variable has a significant positive relationship with both the extent and quality of CSR disclosure practices of the Malaysian PLCs.Research limitations/implications– The recently developed BMB’s CSR framework seems to have impact on the level and systematic CSR reporting practices of Malaysian PLCs. However, the quality of CSR disclosures is considered minimal.Practical implications– The results of the study bring some practical implications to the regulators, particularly Bursa Malaysia. First, it is good to observe that most companies have practiced specific disclosure in a separate statement with regard to CSR. However, the format of presentation and the extent of disclosure vary among the firms. Second, further guidelines need to be developed to provide a clearer framework of disclosure for CSR information. At the moment, Bursa Malaysia only listed down general principles of CSR themes. In addition, the regulators should also look into the evolving issues in CSR, such as the issue of climate change reporting. For example, the Climate Disclosure Standards Board has issued a voluntary Climate Change Reporting Framework.Originality/value– This study examined both the traditional (i.e. firm size and profitability) and non-traditional (i.e. award) factors influencing management’s decision to disclose CSR information in the annual reports of the Malaysian PLCs. Furthermore, the study reported how Malaysian PLCs comply with the recently implemented CSR framework issued by BMB.

Background and Purpose: This study aims to investigate the effect of family ownership, board characteristics (board foreign experience and board accounting expertise), and top management characteristics (management education level) on the quality of website Corporate Social Responsibility (CSR) disclosure via corporate website among the top companies listed in the Indonesia Stock Exchange (IDX). This study adds to the body of literature by examining the moderating effect of family ownership towards the relationship between board characteristics and website CSR disclosure, which is useful for investors who might have concerns on the level of CSR disclosure as a gauge of firm ethics, particularly in respect to family-owned firms.
 
 Methodology: Sample of this study consisted of 100 non-financial companies listed in Indonesia Stock Exchange (IDX) for the year of 2019. To test the study’s hypothesis, multiple linear regression analysis was applied.
 
 Findings: Empirical results from this study have shown that family ownership is negatively related to the quality of website CSR disclosure. Board foreign experience has a positive effect on CSR disclosure practices in their respective corporate websites. Meanwhile, top management education level was found to have a negative and statistically significant relationship with the quality of voluntary website CSR disclosure. Lastly, this study demonstrated that family ownership moderates the relationship between board accounting expertise and the quality of CSR disclosure on corporate websites.
 
 Contributions: This study contributes to the literature on CSR disclosure by introducing a set of index measuring the quality of voluntary website CSR disclosure, which captures not only the variety, but also the richness of CSR information. The moderating role of family ownership on such relationships, which is rarely investigated in the context of developing countries, was also explored by this study.
 
 Keywords: CSR disclosure, voluntary disclosure, family ownership, board characteristics, top management.
 
 Cite as: Melati, I., Arshad, R., Ahmad Nadzri, F. A., Nair, R., & Hermawan, A. A. (2023). Influence of family ownership, board and top management characteristics on the quality of website corporate social responsibility disclosure in Indonesia. Journal of Nusantara Studies, 8(TI), 351-381. http://dx.doi.org/10.24200/jonus.vol8issTIpp351-381

PurposeThe purpose of this paper is to examine corporate social responsibility (CSR) disclosures over a period of time when the business environment, particularly the Malaysian environment, experienced several significant changes including the recent financial crises and regulatory changes. The paper also examines factors influencing the CSR disclosures before and after the aforementioned changes.Design/methodology/approachA self‐constructed CSR checklist was used to measure the extent and quality of CSR disclosures in the annual reports of 85 companies listed on Bursa Malaysia for the years 2006 and 2009. A number of statistical techniques were employed to assess the CSR disclosures over time, as well as factors influencing the CSR disclosures.FindingsResults revealed a significant overall increase in both the extent and quality of CSR disclosures between the two years covered in the study. In terms of factors influencing the CSR disclosures, director ownership, government ownership and company size were found to be significant in explaining both the extent and quality of CSR disclosures in the year 2006. Board size was found to have a significant relationship with only the extent of CSR disclosures in 2006. However, the results in the year 2009, a period following the policy changes, revealed an improved significant association between board size and CSR disclosures.Research limitations/implicationsThe results, which showed a significant increasing trend in CSR disclosures following changes in the market place of an emerging economy, lend some support to legitimacy theory's conjecture that CSR disclosures are used to reduce exposure arising from the public. Hence, this study suggests corporate legitimation practices, which were previously renowned in the economically developed countries, also exist in the emerging economies. The empirical observations asserted in this study, however, were only drawn from the Malaysian context. Therefore, future research involving several emerging countries is needed to ascertain the existence of corporate legitimation exercises in the developing countries.Practical implicationsIn terms of practical implications, the dominance of narrative CSR disclosures in the annual reports as opposed to verifiable information, even after the CSR mandatory requirement, could be due to the absence of a detailed CSR framework for Malaysian public listed companies. Policy makers in Malaysia may therefore want to devise detailed and specific CSR disclosure requirements, rather the current general mandatory requirement, to enhance the quality of CSR disclosures.Originality/valueThis study can be considered one of limited empirical studies to have assessed CSR disclosures following changes in the market place.