Corporate Social Disclosure Index Research Articles

How Does Non-Financial Performance Affect Firm Value? An Empirical Study in Indonesia

The purpose of this study was to determine the effect of financial performance on firm value by using social responsibility as a moderating variable. This research was conducted at the Indonesia Stock Exchange (IDX) using a unit of analysis of manufacturing companies that have gone public. Financial performance and corporate value are measured using the proxy return on assets (ROA) and Tobin's Q, while the moderating variable for disclosure of social responsibility is measured using the corporate social disclosure index (CSDI). The number of N samples selected was 445 companies in 2018–2020. The sampling method used purposive sampling. To explain this effect, Multiple Regression Analysis (MRA) was used. The results of the study show that financial performance has a positive effect on firm value, while social responsibility has no effect. This research shows the novelty and originality of non-financial performance, which looks almost the same as previous studies, but is actually fundamentally different. An important finding in this study is that corporate social responsibility (CSR) acts as a moderating variable that strengthens the effect of financial performance on firm value. Keywords: corporate social responsibility disclosure, financial performance, firm value, moderating variable, multiple regression analysis. DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.60.68

PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP COST OF DEBT DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING

This study aims to examine the effects of corporate social responsibility on the cost of debt with profitability as an intervening variable. Corporate Social Responsibility (CSR) in this study is measured by the Corporate Social Disclosure Index (CSDI) with GRI standards as a reference, cost of debt is measured by interest expense for the current year divided by average debt and profitability is measured by ROE. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019 with purposive sampling technique. The sample used in this study were 74 manufacturing companies with a total of 222 observations. This research is classified in quantitative research.The statistical analysis tool used to test the hypothesis in this study is Smart PLS 3.0. The results of this study indicate that CSR has a negative effect on cost of debt and profitability has been shown to be able to mediate the effect of CSR on cost of debt.

HOW CORPORATE SOCIAL RESPONSIBILITY EFFECTS COMPANY’S FINANCIAL PERFORMANCES

A successful business must pay attention not only to how to improve the welfare of shareholders, but also the welfare of all stakeholders. This study aims to see the effect of disclosure of Corporate Social Responsibility (CSR) on corporate financial performance. Financial performance is measured using three indicators, which are return on Equity (ROE), total stock return and Tobin’s Q. ROE represents company’s profitability, total stock return reflects company’s performance in the market and tobin’s Q shows firm value. CSR is measured using the Corporate Social Disclosure Index (CSRDI) which is based on the ISO 26000 standard. By using two controlling variables, company size and leverage, the results show that there is a negative and insignificant effect between CSR and ROE ratio. Although CSR practice together with control variables also has no effect on total stock returns, but there is a significant positive effect between CSR disclosures and firm value. These results can motivate company’s managers to include CSR as a management strategy to increase firm value by paying serious attention to stakeholders and sustainability issues.

Pengaruh Pengungkapan Corporate Social Responsibility (CSR) dan Kinerja Keuangan Perusahaan terhadap Cumulative Abnormal Return (CAR) (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2010-2011)

This study aims to examine the influence of corporate social responsibility disclosure and financial performance of the company to the cumulative abnormal return (CAR). The disclosure of social responsibility will be measured by Corporate Social Disclosure Index (CSDI), the financial performance is proxied to the return on equity (ROE), and the cumulative abnormal return (CAR) is a Cumulative Stock Return from April 2011 until March 2013. The analyzed database is a secondary database, which in time series form of manufacturing company in period year from 2010 until 2011. The result of statistical test shows that the corporate social responsibility has a positive and significant impact on ROE, and also ROE have positive effect on Cumulative Abnormal Return (CAR). But, the influence of corporate social responsibility to the cumulative abnormal return (ROE) is rejected.

Effects of Corporate Social Responsibility and Managerial Ownership on CorporateValue(Evidence from Consumer Goods Companies Listed on Indonesian Stock Exchange during 2015-2019)

This research aimed to determine the effect of Corporate Social Responsibility and Managerial Ownership on Corporate Values simultaneously or partially. Data were collected using a purposive sampling method on manufacturing companies in the consumer goods industry sector listed on the IDX during 2015-2019. The population covered 34 companies, 24 of which were chosen as the samples due to meeting the specified criteria. Corporate Social Responsibility in this research was calculated by Corporate Social Disclosure Index while management ownership was obtained by knowing the percentage of share ownership by boards of managers. Corporate values in this research were calculated by the value of Tobin's Q. The results of this research indicate that Corporate Social Responsibility and Management Ownership simultaneously did not affect corporate values. However, partially, Corporate Social Responsibility had a positive effect on corporate values while managerial ownership did not affect corporate values.

The effect of corporate social disclosure practice on reporting quality

This research is striving to provide an insight into the importance of Corporate Social Responsibility (CSR) for the insurance sector while aiming to examine various corporate social responsibility initiatives undertaken by insurance companies in Croatia. There is a broad range of potential benefits from CSR for insurance companies such as long-term sustainability and profitability, yet only several research studies on CSR practices have thus far been conducted on the insurance sector. Hence, the purpose of this research is to determine the level of CSR reporting for insurance and reinsurance companies in Croatia and its impact on reporting quality. The empirical research is based on online reporting of six aspects of corporate social responsibility to determine Corporate Social Disclosure Index (CSDI). Reporting quality is measured with Disclosure Quality Index of annual report (DQI) which is structured in five phases. This research includes all 24 insurance and reinsurance companies in Croatia and the research findings show that all insurance and reinsurance companies in Croatia publish information at least concerning two aspects of CSR. It was found that they are the most transparent regarding the human resources aspect of CSR activities and the least transparent concerning environmental aspect of CSR activities. The overall level of CSR disclosure for insurance sector in Croatia is quite low, so we can conclude that insurance and reinsurance companies in Croatia do not have a high level of CSR online disclosure. Considering the issue of reporting quality, insurance and reinsurance companies have an average quality of annual report (AR), measured by DQI of annual report. According to research findings, CSR reporting on the Internet is positively associated with DQI which leads to the conclusion that more socially responsible insurance and reinsurance companies provide annual reports of a more superior quality. Business and society interact and exert a mutual influence through their specific objectives and goals. Consequently, the link between business and society is indisputable. Companies, as one of the key segments of a society, can achieve a number of economic benefits, such as superior business results and considerable competitive advantage if they implement CSR and if they provide high quality information through their annual reports. Moreover, society benefits from socially responsible companies as it enjoys better care both for its own well-being and for that of the environment.

PENGUJI MANIPULASI LABA REAL PADA PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY (STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA)

This study aims to examine empirically the effect of real earnings manipulation to CSR disclosure. A proxy for real earnings manipulation using models Roychowdhury (2006). CSR disclosure is measured using Corporate Social Disclosure Index (CSDI) based item reporting standard Global Reporting Initiative (GRI) are disclosed in the company's annual report. The study sample consisted of 261 manufacturing companies in 2012-2014. The results showed real earnings manipulation significant positive effect on CSR disclosure.Keywwords: Earnings Manipulation, Corporate Social Responsibility, Manufacturing Companies.

Board Diversity and Corporate Social Disclosure: Evidence from Vietnam

Debates around sound corporate governance propose board diversity as a key attribute to sufficiently challenge executive management for stakeholder engagement. This study contributes to this debate by empirically investigating the effect of board diversity on corporate social disclosure (CSD) of Vietnamese listed firms. The study finds a significantly positive effect of diversity-in-boards (dissimilarities among directors within a board, i.e., demographic attributes of board members) on CSD while diversity-of-boards (dissimilarities among firm boards, i.e., board structure) has no effect on CSD. The results contribute by showing that a single theoretical approach can provide an adequate explanation for board diversity. The study contributes methodologically by demonstrating the design and measurement of board diversity indices, and a three-dimensional stakeholder-relevant CSD index. The findings benefit regulators and corporate executives in better understanding firms’ CSD practices and stakeholders’ expectations.

Communicating CSR: integrated approach or Selfie? Evidence from the Milan Stock Exchange

Nowadays companies operate in a context in which communicating environmental and sustainability issues are gaining an increasing and strategic importance. Numerous studies reveal the continuous improvement of both the amount of Corporate Social Disclosure and the different channels used (e.g., Internet, sustainability reports, annual reports, and codes of ethics). In this study a legitimacy theory framework has been adopted to understand the extent to which listed companies incorporate sustainability information in a coherent and unique framework. Departing from previous literature, a content analysis on the corporate websites and main documents was performed to develop a Corporate Social Disclosure Index and an Integration Index aimed at identifying the correlation between the quality of disclosure and the integration among documents. From the analysis, it emerges that just a few leading companies that show a high level of Corporate Social Disclosure have an equally high level of content integration. The results show that, although listed companies employ different means to convey social responsibility issues, such instruments are not always aligned among themselves. Given the lack of coherence resulted among documents, this paper calls for the need to enhance the process of integrating reports, as it has an important value in strengthening the integration of sustainability in organizations' culture and identity. It also makes an appeal to managers proposing a matrix useful for evaluating companies' performances in terms of both disclosure practices and integration of produced documents, and driving their efforts towards the maximization of their results.

The Association Between Corporate Social Responsibility And Corporate Financial Performance

The objectives of this study is to investigate the association between CSR and Corporate Financial Performance (CFP). This study investigates 800 firms listed on Indonesian Stock Exchange in 2010 - 2012. Financial performance is measured by accounting-based approach and stock-market-based approach. While, CSR practices is measured by Corporate Social Disclosure Index (CSRDI). Thus, the association was analyzed under multivariate linear regression by considering time difference. Firm size, growth, and risk are included as control variables. This study finds: (1) CSR provides positive impact on the financial performance until one next period; (2) financial performance measured by ROA influence positively CSR only the next two years; (3) there is significant positive relationship between firm size and CSR. The paper has implications in enhancing the understanding of company performance through understanding the association between CSR and CFP. This may increase the understanding of the association between CSR and CFP. The findings of this study contribute<br />to the literature and regulator on CSR.

PENGARUH TANGGUNG JAWAB SOSIAL PERUSAHAAN TERHADAP KINERJA PERUSAHAAN(STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG TERCATAT DI BURSA EFEK INDONESIA PADA TAHUN 2010 DAN 2011)

The purpose of this research is to test the effect of CSR on firm financial and market performance. This research used Corporate Social Disclosure Index (CSDI) as a measure of CSR disclosure, based on indicators from Research Based. The samples of this research are 56 public firms manufacture listed in Indonesian Stock Exchange (IDX) year 2010 and 2011. Relatively lower score of CSDI shows that CSR disclosure in firms’ annual report is still low. This may due to there is still no mandatory rules regarding CSR disclosure in Indonesia and the lack of firms’ awareness of the importance of CSR and its disclosure in annual report. Test results show that CSR disclosure have positive and significant effect on Return on Asset as a measure of financial performance, but CSR disclosure do not has significant effect on cumulative abnormal return (CAR) as a measure of market performance.

PENGARUH BIAYA TANGGUNG JAWAB SOSIAL TERHADAP KINERJA PERUSAHAAN STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI

ABSTRACT
 The purpose of this research is to test the effect of CSR on firm financial. This research is motivated by the fact that there is a lower level of activities of CSR and its disclosure and also mixed results from previous research. This research used Corporate Social Disclosure Index (CSDI) as a measure of CSR disclosure, based on indicators from Global Reporting Initiatives (GRI). The samples of this research are 170 public firms listed in Indonesian Stock Exchange (IDX) year 2007 and 2008 Relatively lower score of CSDI shows that CSR disclosure in firms annual report is still low. This may due to there is still no mandatory rules regarding CSR disclosure in Indonesia and the lack of firms awareness of the importance of CSR and its disclosure in annual report. Test results show that CSR disclosure have positive and not significant effect on Return on Equity as a measure of financial performance.