Level Of Corporate Social Responsibility Disclosure Research Articles

Examining several factors that influence corporate social responsibility disclosure

This study aims to analyze the impact of Company Size, Profitability, and Foreign Ownership on Corporate Social Responsibility (CSR) Disclosure in mining companies listed on the Stock Exchange. Specifically, it aims to determine whether these factors significantly influence CSR disclosure. This study utilizes secondary data from the financial statements of mining companies listed on the IDX. Multiple linear regression analysis assesses the relationship between Company Size, Profitability, Foreign Ownership, and CSR Disclosure. The analysis aims to establish these factors' individual and combined effects on CSR disclosure in the mining industry. This study's findings indicate that the company's size positively influences CSR disclosure. Larger companies tend to exhibit higher levels of CSR disclosure. Additionally, profitability positively and significantly impacts CSR disclosure, suggesting that more profitable mining companies tend to disclose more about their social responsibility initiatives. The results also demonstrate that the ownership of foreign shares owned by the company positively influences CSR disclosure. As the ownership of foreign shares increases, the level of CSR disclosure also increases. Furthermore, the study concludes that when considering Company Size, Profitability, and Foreign Ownership, they collectively positively and significantly affect corporate social responsibility. This study contributes to the existing literature by examining the impact of Company Size, Profitability, and Foreign Ownership on CSR Disclosure, specifically in the mining sector. The findings provide insights into the factors that affect the extent of CSR disclosure, which can help mining companies and stakeholders enhance their understanding and awareness of social responsibility practices within the industry.

The Impact of Corporate Governance and Ownership Structure on The Level Of Corporate Social Responsibility Disclosure of Listed Manufacturing Companies on The Ho Chi Minh Stock Exchange – Vietnam

Purpose: The study has provided an overview of the theoretical foundation and empirical evidence on the impact of corporate governance on the level of corporate social responsibility (CSR) disclosure among listed manufacturing companies on the Ho Chi Minh Stock Exchange in 2021, utilizing secondary data from 118 manufacturing firms.   Theoretical framework: In accordance with Agency Theory, the Separation of Ownership and Management, and the Stakeholder Theory, this study aims to investigate the influence of corporate governance characteristics on the extent of corporate social responsibility (CSR) disclosure in the manufacturing sector.   Results and conclusion: The quantitative research model is constructed with five corporate governance factors and one control variable related to company characteristics, including the board size, the proportion of female members in the board, the proportion of independent board members, the foreign ownership ratio, the state ownership ratio, and the company size. The results from the Ordinary Least Squares (OLS) regression analysis indicate that the majority of the corporate governance variables are correlated with the level of CSR disclosure, except for the proportion of independent board members.   Research implications: The study suggests managerial implications to help businesses recognize the importance of corporate governance in CSR disclosure, aiming to enhance reputation and attract investments.   Originality/value: Additionally, the results also demonstrate that company-specific factors, such as company size and financial leverage, significantly impact the company's profitability.

The Impact of Board of Directors' Independence on Corporate Social Responsibility Disclosure in Palestinian Companies

Corporate social responsibility (CSR) is a comprehensive approach of the company that determines the amount of the organisation's contribution to society and the use of its available resources in a responsible manner. Previous statistics have shown that the contributions of Palestinian companies towards social issues are still limited, and corporate social responsibility disclosure (CSRD) is at a low level. This paper aims to examine the level of CSRD of Palestinian companies and to examine the relationship of   board of directors’ (BOD) independence on CSRD. The study employs OLS linear regression analysis to analysis of data using a sample of 31 companies listed on the Palestine Stock Exchange (PSE) during the period from 2012 to 2021. The theoretical framework of agency theory will be adopted to comprehend the relationship between the variables under investigation. The findings reveal that the level of CSR disclosure  in Palestinian companies included in the sample of study is 29.5%.The results of the study also, indicated that the   positive and significant relationship between BOD independence and CSRD.

Share pledging of controlling shareholders and corporate social responsibility disclosure

This paper employs a large sample of A-share listed firms in China from 2011 to 2019 to examine whether controlling shareholders strategically improve corporate social responsibility disclosure under the unique situation of share pledges. The result indicates that controlling shareholders’ share pledging is positively associated with corporate social responsibility disclosure. The mechanism analysis demonstrates that the corporate social responsibility disclosure level increases when the firm’s stock price approaches the liquidation line. This finding indicates that controlling shareholders use strategic social responsibility disclosure for risk management after pledging their shares; however, controlling shareholders focus on improving the comprehensiveness of disclosure content rather than its credibility and standardization.

INFLUENCE OF FAMILY OWNERSHIP, BOARD AND TOP MANAGEMENT CHARACTERISTICS ON THE QUALITY OF WEBSITE CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE IN INDONESIA

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

Corporate social responsibility disclosure, dividend payments and firm value – Relations and mediating effects

AbstractWe examine the relations between corporate social responsibility (CSR) disclosures, dividend payments and firm value. We use an international sample and measure CSR disclosures based on Global Reporting Initiative (GRI) disclosure levels, which we divide into two parts (unexpected and expected disclosures). We find three main results. First, firms with higher levels of unexpected CSR disclosure pay higher dividends, and this association is attributable to firms where unexpected CSR disclosure is aligned with CSR performance. Second, only the unexpected part of CSR disclosures is positively associated with share prices. Third, this positive association is fully mediated by dividends.

Analysis Of The Effect Of Profit And Leverage Management On The Level Of Disclosure Of Corporate Social Responsibility And Company Value

This study examines the influence of earnings management and leverage on corporate social responsibility disclosure level and company value. This research was conducted on banking sector companies listed on Indonesia Stock Exchange in 2014 until 2016. Based on the results of path analysis, the study showed that earnings management has no influence on the level of CSR disclosure while leverage was found to have influence on the level of CSR disclosure. The results also provide evidence that earnings management and leverage management have no effect on company value. Furthermore, the results found that CSR disclosure Level has no effect on company value either as an independent variable nor intervening variable in the analysis of the influence of earnings management and leverage on company value. The implications of this study give the result that there are few companies that disclose corporate social responsibility in accordance with GRI.G4 provisions. In return, this lack of compliance of banking companies in Indonesia with the obligations and reporting of corporate social responsibility programs according to the prevailing provisions possibly caused the CSR variable as intervening variable has not been able to become a powerful bank image form factor to influence the value of the company.

CEO’s Characteristics and CSR Disclosure: Evidence from Islamic Banks across MENA Region

The purpose of this paper was to explore the relationship between the characteristics of the chief executive officer (CEO) and corporate social responsibility (CSR) of banks operating in the Middle East and North African (MENA) countries. The study hypotheses was tested using a multiple linear regression model by examining data from a sample of 97 Islamic banks operating in the MENA region between 2015 and 2019. The results were robustly checked and the findings indicated that both CEO’s overconfidence, experience and education appear to have a significantly positive effect on the CSR disclosure. Furthermore, the results of multiple linear regressions showed that older CEO’s have a negative and significant impact on the level of CSR disclosure. This research bridges the gap between theory and practice in many aspects. Thus, although a substantial volume of research has examined sustainable advantage, one vital aspect of CSR has been largely unexplored. This study fills this void in the literature, namely the interaction between CEO’s characteristics and CSR disclosure. An explicit CSR disclosure may improve social well-being in emerging markets.

Tata Kelola Perusahaan dan Pengungkapan Tanggung Jawab Sosial Perusahaan pada Bank Komersial di Indonesia

This study aims to explore the level and nature of corporate social responsibility (CSR) disclosure reporting practices in Indonesian commercial banks, as well as investigate the effect of board characteristics on CSR disclosure in the era of developing economies. Data collection in this study was collected manually from the annual reports of all commercial banks listed on the official website of the Indonesia Stock Exchange (IDX) in the period 2017 to 2020, so this research is included in a quantitative approach. Empirical evidence shows that board size and independent directors have a positive effect on CSR disclosure, while board gender diversity has no impact on CSR disclosure levels. Furthermore, the results of the study state that the age of the bank is a significant factor in the spread of CSR disclosure. In addition, the findings show that banks with managerial ownership, foreign share ownership and also state share ownership state extensive and transparent information about CSR activities.
 Keywords: Banking, Board Characteristics, Corporate Social Responsibility, Ownership Structure

Corporate Social Responsibility And Financial Performance: An Empirical Study On Vietnam Commercial Banks

This paper examines corporate social responsibility (CSR) information disclosure and the one-way impact of CSR on financial performance described by the net interest margin (NIM) of the Vietnamese commercial banks between 2012 and 2019. The sample was selected in 29 commercial banks with 232 observations. The generalized method of moments (GMM) was used in this research. The finding shows that the employee responsibility index has the highest disclosure rate, while the environmental responsibility is the lowest. Comparing the level of CSR disclosure among the groups in the sample, the finding also shows that the State group has a higher disclosure rate than the non-State group. Furthermore, the GMM estimation results positively impact NIM's total CSR and environmental responsibility indexes.

Corporate Social Responsibility Disclosure and Corporate Governance in Malaysian Listed Firms

The goal of this study is to assess whether there has been a change in the degree of corporate social responsibility (CSR) disclosure and whether corporate governance qualities impact CSR disclosure in Malaysian listed businesses' corporate annual reports. The annual reports of 91 Bursa Malaysia-listed firms were analysed using qualitative content analysis during an eight-year period (2014-2021). Regression analysis was used to discover parameters impacting CSR disclosure in annual reports. The regression analysis found that the availability of external auditors and board independence were linearly and statistically linked with the level of CSR disclosure, as expected. The regression model yielded an R2 of 81.34 percent, indicating that the CSR scoring measures explain for about 81 percent of the variance in corporate governance score, with the remaining 19 percent caused or influenced by other variables. This article is one of the few studies that investigate CSR disclosure and corporate governance qualities among Malaysia-listed firms following the government's adoption of many new CSR initiatives over the last decade.

The effect of corporate governance elements on corporate social responsibility reporting of listed companies in Vietnam

This paper examines the impact of various corporate governance characteristics on the disclosure of corporate social responsibility (CSR) information in the context of developing markets during the COVID-19 pandemic. We used data from the annual reports of the top 100 companies listed on the Ho Chi Minh Stock Exchange from 2019 to 2021 to investigate the relationship between board independence, board size, CEO duality, foreign ownership, government ownership, and the disclosure level of CSR reporting. We employed a content analysis to measure CSR disclosure level by using the CSR reporting index (CSRRI) with 17 items. The panel regressions including three techniques like the pooled-ordinary least squares (OLS), fixed effects model (FEM), and random effects model (REM), were used to analyze the data, and FEM) shows its best fit to the model. The results suggest that board independence and government ownership correlate positively and significantly with companies’ decisions to disclose CSR information. In contrast, board size, CEO duality, foreign ownership and was found to be insignificant. Our study extends the literature on CSR particularly in developing countries where governments play a significant role in promoting economic development. It also evaluates the CSR disclosure level of the top listed companies in Vietnam. Since then, the paper’s results provide several insights to the policymakers to identify the corporate governance characteristics that will promote CSR reporting in Vietnam’s listed companies.

Level of Corporate Social Responsibility Disclosure and Financial Performance: A Case Study in Ho Chi Minh City, Vietnam

Research aims: This study examines the influence of firm size, firm age, current ratio, and type of audit company on the corporate social responsibility disclosure level and its impact on the financial performance of listed enterprises in Vietnam.Design/Methodology/Approach: Financial data were collected from the annual reports of 109 enterprises listed on the Ho Chi Minh City Stock Exchange, Vietnam, from 2016 to 2020. This research employed the Random Effects Model (REM), Fixed Effects Model (FEM), and Feasible Generalized Least Squares (FGLS) to deal with the drawbacks of the regression models, as mentioned.Research findings: The findings support the positive influence of firm size, firm age, and the type of auditing firm on the level of CSR information disclosure of listed manufacturing enterprises. Also, the extent of CSR disclosure positively affected financial performance, confirming the positive relationship between CSR disclosure level and financial performance.Theoretical contribution/Originality: This study contributes to governance theory by expanding and combining stakeholder and legitimacy theories with criteria for measuring the level of CSR disclosure in the Vietnamese context. Therefore, the study results are a valuable reference for theorists who tirelessly pursue the CSR topic.Practitioner/Policy implication: This study proposes recommendations for practitioners who should focus on enhancing the level of CSR disclosure to generate more benefits and result in better financial performance. Also, policy implications should be raising the senior managers’ awareness of the level of CSR disclosure, firm size, firm age, and type of audit and establishing a stable legal framework for the level of CSR disclosure in line with international standards and practices.Research limitation/Implication: The sample data were only collected from manufacturing companies listed on Ho Chi Minh Stock Exchange, and the analyzed content and measurement of the level of CSR disclosure primely relied on the enterprises’ annual reports.

CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY IN ISLAMIC BANKS: A SYSTEMATIC LITERATURE REVIEW

The main objectives of this study are two-fold. First, this study aims to review the research development on corporate governance (CG) and corporate social responsibility (CSR) in Islamic banks. Second, this study aims to identify the impact of CG on the CSR of Islamic banks. Several previous studies focused on CG and CSR in Islamic banks with empirical and theoretical approaches. Through a systematic literature review (SLR), 20 papers published in the Scopus database from 1997 to 2021 on the relationship between CG and CSR in Islamic banks were selected for analysis. The findings revealed that most of the research on CG and CSR in Islamic banks uses a quantitative approach to measure the level of CSR disclosure in the banks and the impact of CG on CSR disclosure. In addition, some evidence concludes that aspects of CG, such as the Shari’ah supervisory board (SSB), board of directors (BODs), and audit committee, positively or negatively influence CSR disclosure in Islamic banks. This study suggests that research on CG and CSR in Islamic banks still requires development on variables aspects, issues, and analysis development using other research methods such as qualitative approaches.

What drives the innovation in corporate social responsibility (CSR) disclosures? An integrated reporting perspective from China

Integrated reporting (IR) is an innovative approach to corporate social responsibility (CSR) reporting, that aims to enhance the integration levels of CSR disclosures. However, there is a paucity of research on the application of the IR approach to traditional CSR disclosures, with an even rarer contribution towards the determinants of CSR disclosure integration levels. Using a sample of Chinese listed companies, this study provides evidence on the integration levels of CSR disclosures from an IR perspective, and examines their firm-level drivers. The results suggest that, while board size, chief executive officer (CEO) duality, Global Reporting Initiative (GRI) adoption, and external assurance positively impact these integration levels, board independence, gender diversity, meetings, and committees have no such impact. This study is one of the first to examine the integration level of CSR disclosures, as well as the determinants of this integration level, adding to the knowledge on the innovation of CSR reporting.

Audit committee and CSR disclosure: does the gender diversity of audit committee members matter?

PurposeThe gender theory demonstrates that women have made significant contributions to the increases of firm performance and monitoring the management. Therefore, the purpose of this study is to examine the association between audit committee gender diversity (ACGD) and corporate social responsibility (CSR) disclosure of the firms listed on the Tehran Stock Exchange.Design/methodology/approachThe authors conduct regression analysis to test the association between the presence of female members on the AC and CSR disclosure. The final sample in this study consists of 693 firm‐year observations from Iranian listed firms over the period 2012–2018. Moreover, to ensure the robustness of the findings, this study uses a series of sensitivity analysis tests.FindingsThe regression results show that ACGD has a significant positive influence on the level of CSR disclosure. The finding is robust to alternative measure of ACGD, CSR disclosure and endogeneity concern.Practical implicationsThe findings have numerous practical implications for regulators, policy makers, managers and investors. This study has implications for Iranian regulators and policymakers and sends positive signal about recommending or requiring gender diversity on the board and its subgroups such as AC. Furthermore, the findings have implications for the investors, so that they have to make informed investment decisions given both financial factors and ACGD, and eventually invest in those firms with women membership in their AC’s composition.Social implicationsConcerning with board of directors and the general assembly of shareholders, as the findings suggest the significant role of ACGD in the enhancement of CSR disclosure, boards and the general assembly are to engage women in AC composition to both increase AC efficiency and improve CSR disclosure level.Originality/valueTo the best of the authors’ knowledge, this is the first study of its kind that investigates the association between ACGD and CSR disclosure in emerging capital markets, and therefore can contribute to extend the current literature on CSR in developing countries, especially Iran’s emerging capital market.

Corporate Social Responsibility and Firm Performance among Malaysian Firms

With the rise in corporate social responsibility (CSR) initiatives and greater awareness of sustainable development, CSR is rapidly evolving and firms’ involvement is increasing. However, the enforcement of mandatory disclosure does not necessarily mean firms will respond and go beyond these legislations. Thus, the underlying premise of positive financial outcomes could encourage firms to act beyond legislative compliance. This study first examined the current nature and extent of a firm’s CSR disclosure (CSRD), as measured by CSR dimensions workplace, marketplace, community, and environment. CSRD was measured through content analysis, through annual reports of 97 manufacturing firms in Malaysia from 2017 to 2019. A CSR disclosure index was adopted for this study. This study also determined the impact of CSRD on corporate financial performance (CFP) and identified which CSRD dimension had the greatest impact on CFP. Firm size, measured by the level of assets, sales, and market capitalisation, as well as earnings per share were the control variables for this study. Data were analysed using Pearson’s correlation and multiple regression analysis. It was found that CSRD levels in manufacturing firms in Malaysia were still low and there was a mixed relationship between CSRD and CFP. The findings suggest that the relationship between CSR and CFP may be curvilinear. It was also found that community, workplace, and marketplace related responsibility activities affected ROA the most, whereas the marketplace affected Tobin’s Q the most.

Effect of corporate governance on corporate social responsibility in Vietnam: state-ownership as the moderating role

PurposeThis study aims to investigate the association between corporate governance (CG) and the corporate social responsibility (CSR) information disclosure as well as the moderating role of state-ownership between CG and CSR disclosure.Design/methodology/approachTo examine the relationship between CG and CSR disclosure, this study used the feasible general least squares and generalized method of moments method on a sample of 165 non-financial quoted companies over the 2015–2018 period, which account for about three-fourths of the Vietnamese stock exchange.FindingsThe findings suggest that enterprises with smaller board size consisting mainly of independent directors have a higher CSR disclosure level. Moreover, when the chief executive officer is concurrently the chairman of the board, the level of CSR disclosure falls. Additionally, the moderating role of state ownership enhances CSR disclosure.Research limitations/implicationsThe empirical results of this study form a solid foundation for policymakers and other stakeholders’ decisions in investing or establishing policies.Originality/valueThis study provides empirical evidence on the relationship between CG and CSR disclosure in Vietnam – a developing country with no legal requirement on CSR disclosure. Moreover, this study emphasizes the moderating role of state ownership between CG and CSR disclosure, which clarifies the role of state ownership in establishing CG mechanisms.

Impact of corporate governance on corporate social responsibility disclosure of the UAE listed banks

Purpose This study aims to investigate the extent and trend of corporate social responsibility (CSR) disclosure by UAE listed banks and the impact of corporate governance mechanisms on this disclosure. Design/methodology/approach Content analysis of banks’ annual reports from 2009 to 2019 was applied to investigate the CSR disclosure level by constructing a disclosure index. Panel data regressions were applied to analyze the impact of corporate governance mechanisms on CSR disclosure. Findings UAE banks show an improving trend in the CSR disclosures. In addition, the board of directors and ownership structure are significantly and positively associated with the CSR disclosures. The results vary across the banking systems. Research limitations/implications This study considers the extent of the CSR disclosure in UAE banks’ annual reports, and future research should consider more industries and communication channels. Practical implications This study sheds light on the extent of the CSR disclosure of UAE listed banks and assists UAE policymakers in implementing appropriate corporate governance mechanisms. Social implications The findings provide banks with a better understanding of the benefits of strengthening corporate governance to improve their CSR disclosure. Originality/value This study contributes to the literature by constructing a more comprehensive disclosure index and examining the impact of corporate governance mechanisms on CSR disclosure by considering both the conventional and Islamic banking systems.

Antecedents of corporate social responsibility disclosure: evidence from the UK extractive and retail sector

PurposeThis study aims to examine the level of corporate social responsibility (CSR) disclosure among the UK extractive and retail sectors and consequently ascertain whether corporate board characteristics and firm characteristics can explain observable differences in the extent of CSR disclosure.Design/methodology/approachBased on the KPMG survey 2017, the sample comprises all the firms in the extractive industries, such as mining and oil and gas and also retail industries, such as food and drug retailers and general retailers for the sample period of 2005 to 2018.FindingsThe findings show that the level of CSR disclosure from extractive sector is much higher than that of their counterparts in retail sector. In addition, the multiple regression results show that CSR disclosure is positively and significantly associated with board gender diversity, board independence, board size. Nevertheless, the results show that board meetings and Chief Executive Officer duality do not have a significant impact on CSR disclosure.Originality/valueThis study contributes to the existing literature on CSR in that it advances the understanding of the interaction between governance mechanisms and specific firm characteristics of two distinct sectors of the UK economy and how this in turn influences the CSR in the two sectors.