The Effect of Commissioners Board Size and Committee Board Size on Disclosure of Corporate Social Responsibility (CSR)

Achmad Hasan Hafidzi

doi:10.22236/agregat_vol3/is1pp65-80

Abstract

This study aims to analyze the effect of board size and committees size to corporate social responsibilitythrough financial performance. The sample used in this study is secondary data of companies listed LQ-45 Index in 2013-2017 and determined using a purposive sampling method. The data about researchvariables are available in the financial report. The data analysis method is using path analysis. Theresults were showed that the size of commissioners board to corporate social responsibility was significantpositive, size of committees to corporate social responsibility was significant positive relationship, size ofcommissioners board to financial performance was significant positive relationship, size of committeesto financial performance was relationship positive significant, financial performance to corporate socialresponsibility shows a significant positive relationship.

Highlights

The capital market has a very important role for companies outside the banking sector
This study aims to analyze the effect of board size and committees size to corporate social responsibility through financial performance
The results were showed that the size of commissioners board to corporate social responsibility was significant positive, size of committees to corporate social responsibility was significant positive relationship, size of commissioners board to financial performance was significant positive relationship, size of committees to financial performance was relationship positive significant, financial performance to corporate social responsibility shows a significant positive relationship

Summary

Introduction

The capital market has a very important role for companies outside the banking sector This is related to the two functions which carried out by the capital market, namely the function of the economy and financial functions. The role of the capital market in economic functions is as a liaison between the provider of funds (investors) with users of funds (issuers or companies going public). The companies which listed on the stock exchange generally get higher demands from the investors to make information disclosure widely. The need for this information cannot be fulfilled only with mandatory disclosures, but companies need to disclose more information in a social responsible manner. Through disclosure of social responsibility, management can demonstrate the performance of the company and provide information that is appropriate for users (Subroto; 2004)

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