Corporate Social Responsibility Disclosure Research Articles

Does CSR disclosure mediate the board characteristics-cost of equity capital nexus? Evidence from Jordanian services companies

Purpose This study aims to investigate the direct nexus between board characteristics, corporate social responsibility (CSR) disclosure and the cost of equity capital (CEQ). This is done by using agency theory, stakeholder theory and signalling theory, followed by an investigation into the indirect mediation impact of CSR disclosure in the board characteristics-CEQ nexus. It intends to present new experimental evidence from Jordan’s developing economy. Design/methodology/approach The study’s target population was services companies registered on the Amman Stock Exchange (ASE) between 2012 and 2020. As a result, the population and sampling of this study are represented by all services companies for whom complete data are available over the period, with a total of 43 services companies yielding 387 company-year observations. Data for our study were obtained from their annual disclosures and the ASE’s database. Findings The main findings demonstrated that board size, board gender variety and the number of board sessions positively affect CSR disclosure significantly. In addition, three board characteristics (i.e. board size, board independence and board gender variety) significantly negatively affect CEQ. Besides, CSR disclosure significantly negatively affects CEQ and it fully mediates the relationship between two board characteristics (i.e. board size and board gender variety) and CEQ, whereas it partially mediates the nexus between board independence, CEO/Chairman duality and the number of board sessions of board characteristics and CEQ. Originality/value This study varies from earlier studies, in that it builds a new research model by looking at the mediating role of CSR disclosure in the nexus among board characteristics and the CEQ.

The influence of board of directors’ characteristics on corporate social responsibility disclosures in Jordanian Islamic banks

In an era where organizations are increasingly recognizing the paramount importance of addressing societal and environmental concerns, corporate social responsibility (CSR) has emerged as a pivotal facet of contemporary business practices. Within the banking sector, Islamic banks assume a significant role in advocating ethical and socially responsible conduct. This study delves into the impact of the board of directors' characteristics on corporate social responsibility disclosures (CSRD) within Jordanian Islamic banks. Data were meticulously gathered from three Jordanian Islamic banks, all of which are listed on the Amman Stock Exchange (ASE), over the span of the years 2010 to 2022. Our findings illuminate that Jordanian Islamic banks, on average, disclose 47 percent of their CSR endeavors, marking a commendable level of transparency, particularly when contrasted with less developed economies. Notably, independent directors comprise 42% of the board composition, with the average age of board members standing at 41 years. Moreover, 8.10% of board members hold degrees in finance and accounting, while 0.24% possess professional experience within the Big Four accounting firms. On average, Jordanian Islamic banks convene 10.27 board meetings annually, and 48% of directors maintain multiple directorships. Significantly, our analysis underscores that all examined characteristics of board members have a favorable influence on CSR disclosure within Jordanian Islamic banks. This paper constitutes a substantial contribution to the extant literature by providing empirical substantiation of the nexus between the board of directors' characteristics and CSRD in Jordanian Islamic banks, with a specific emphasis on the unique domain of Islamic banking, which has hitherto received limited scholarly attention. Further avenues of research are recommended to explore additional variables and delve deeper into the intricate interplay between board characteristics, external contextual factors, and the disclosure of CSR activities.

Corporate Social Responsibility dan Cost of Capital

This study aims to see how disclosure of corporate social responsibility (CSR) impacts the cost of capital (COC). This study uses 260 observations of non-financial companies listed on the IDX from 2016 to 2018. The technical analysis in this study is multiple linear regression analysis. The results show that corporate social responsibility has a negative effect on the cost of equity and cost of debt. Keywords: Corporate Social Responsibility, Cost of Debt, and Cost of Capital

The Effect of Institutional Ownership, Sales Growth, Firm Size on Tax Avoidance with Corporate Social Responsibility as a Moderating Variable

Tax avoidance practices are one of the causes of reduced tax revenue from predetermined projections. This study examines whether companies in Indonesia will engage in tax avoidance practices when they start implementing CSR. Thus, this study aims to describe the magnitude of the influence of institutional ownership, sales growth, company size in the trade, services, and investment sectors of companies listed on the Indonesia Stock Exchange on corporate tax avoidance by adding corporate social responsibility as a moderate variable. The sample of this study was selected based on predetermined criteria. The purposive sampling method was used to obtain 31 companies in the trade, services and investment sectors listed on the Indonesia Stock Exchange for 2017-2021. Data from the company's financial and annual statements are then analyzed using Eviews software. The findings revealed that institutional ownership and firm size positively influence tax avoidance; However, sales growth negatively impacts tax avoidance. Corporate social responsibility disclosures can moderate and weaken the effect of sales growth on tax avoidance. However, it strengthens the link between institutional ownership and company size on tax avoidance. The implication is that there needs to be stricter regulatory action and attention to transparency and good tax reporting in order to achieve fairer and more sustainable taxation.

THE INFLUENCE OF PROFITABILITY AND LEVERAGE ON CORPORATE SOCIAL RESPONSIBILITY

This research aims to empirically test and analyze the influence of profitability and leverage on corporate social responsibility. This research includes quantitative research. The research sample was 97 mining companies listed on the Indonesia Stock Exchange in the period 2018 to 2022. The sampling technique used purposive sampling. Profitability is measured using Return on Assets (ROA), leverage is measured using the Debt to Equity Ratio (DER), and corporate social responsibility is measured using the corporate social responsibility disclosure index (CSRDI). The data used is company annual financial report data. The data analysis technique was carried out using multiple linear regression analysis and data processing via SPSS. The research results show that profitability has a significant positive effect on the company's corporate social responsibility. Leverage has also been proven to influence a company's corporate social responsibility. Companies that are able to generate profits (profits) and manage debt well will have an impact on the corporate social responsibility of mining companies listed on the Indonesia Stock Exchange.

The role of firm-level CSR governance characteristics as a driver of comprehensive CSR reporting – the moderating role of profitability

PurposeThis study aims to examine the impact of firm-level corporate social responsibility (CSR) governance characteristics on the extent, quality and comprehensiveness of CSR reporting of Pakistani listed enterprises.Design/methodology/approachThis study used content analysis of corporate annual reports and stand-alone CSR reports available on corporate websites in 2021 to identify CSR-related governance features and to calculate CSR reporting scores. Multivariate regression is used to test relationships. In addition, the analysis tested the moderating role of profitability in these relationships.FindingsFirm-level CSR governance characteristics contribute to the extent, quality and comprehensiveness of CSR reporting in a developing country. Further, results confirm that profitability moderates the relationship between CSR governance and the extent and comprehensiveness of CSR reporting.Research limitations/implicationsThis study employed cross-sectional data and focused on a single developing country. Future studies might include a cross-national sample and longitudinal data to demonstrate the broader relevance of these findings. The outcomes of this study are restricted to CSR disclosures based on CSR reports and annual reports. Future research may examine additional corporate communication channels, such as websites and social media platforms.Practical implicationsThis research validates the important role of CSR governance mechanisms as a driver of comprehensive CSR reporting. Business leaders and policymakers can facilitate improved corporate reporting by requiring companies to implement CSR-related governance mechanisms.Originality/valueThis is the first study to test the influence of firm-level CSR governance mechanisms in promoting the quantity, quality and comprehensiveness of CSR reporting in a developing country.

Role of Board Composition Index in Corporate Social Responsibility (CSR) Disclosure: Evidence From United States

Corporate directors play a crucial role in meeting the Corporate Social Responsibility (CSR) reporting obligation. Thus, how to promote CSR practices through MNCs has attracted the attention of scholars. This study aims to investigate the impact of the board composition index on CSR disclosure in the context of the United States. In addition, the study examines whether board characteristics (board size, board diligence, board duality and board independence) impact CSR disclosure. Panel data for S&P 1500 index firms were collected from the data stream portal. The current study employed a sample of 286 US firms from 2010 to 2020. To achieve the research objectives, the current study develops an index score very first time for board composition. A panel regression model with fixed and random effects was employed to estimate the proposed hypotheses. In addition, the problem of endogeneity was resolved through the dynamic GMM model. The results of the study revealed that the board composition index has a significant impact on the disclosure of CSR information. Moreover, higher board diligence and independence in US corporates enhance CSR disclosure. However, board duality and the size of the board room negatively and significantly impact CSR. US policymakers and legislators make reforms in composition and structure to build stakeholders’ interest. In addition, no study combined such corporate board variables to address CSR in developed countries. The findings of the study are consistent with both institutional and stakeholder theory.

Can company size moderate corporate social responsibility disclosure effect on company profitability? Evidence from mining industry

Purpose — This study aims to examine the moderating effect of the company size on the relationship between Corporate Social Responsibility (CSR) disclosure and company profitability in mining industry.Method — This study employs multiple regression to examine the relationship between CSR disclosure and profitability using ROA and ROE proxies, with company size as a moderator. The observations were conducted on 12 mining companies listed on the Indonesia Stock Exchange during the period of 2018-2022.Result — We found that company size moderates the relationship between CSR disclosure and company profitability, using ROA and ROE as proxies. The results indicate that CSR disclosure had a positive and significant effect on company profitability when measured with ROA proxies but did not show significance with ROE proxies.Contribution — This research contributes by using company size variable as the moderator in the relationship between CSR disclosure and financial performance.

Impact of Paradigm Shift in Corporate Social Responsibility from Voluntary to Mandatory on Corporate Financial Performance

This study aimed to find out the impact of a paradigm shift in corporate social responsibility on corporate financial performance. Developing an inclusive and prosperous society needs to reformulate the business-society nexus concerning social responsibility. Corporations are supposed to not only on economic priorities but on societal and environmental implications as well. In the present scenario business organizations must divert the profits to social obligations like medical & and education facilities, hunger & and poverty eradication, a pollution-free environment, and equality of gender. The government has been following constructive initiatives to formalize corporate responsibility toward society from voluntary guidelines to legal obligations. Keeping in view the historical legal reforms, the present study focuses on the empirical analysis of the association between CSR disclosures and corporate financial performance among Indian companies after the enactment of the amended Companies Act. The analyses highlight that companies’ CSR disclosures have a significant impact on their financial performances. The findings of the study are consistent with earlier research, where the CSR disclosure and financial performance relationship is positive. Several companies are engrossed in social obligations towards external and internal stakeholders, as spending on social responsibilities will ensure good financial health. The current research imparts empirical support as well as theoretical support and motivation for the corporate sector towards CSR initiatives.

Profitabilitas, Ukuran Perusahaan, Leverage, Eco-Control, dan Corporate Social Responsibility Disclosure

Corporate Social Responsibility Disclosure is an information reporting carried out as a form of corporate social responsibility. The research aims to obtain empirical evidence of the influence of Profitability, Company Size, Leverage and Eco-control on CSR Disclosure. Research was conducted on SRI-KEHATI indexed companies on the IDX for the 2019-2020 period with a sample of 50 companies using the saturated sampling method. The analysis technique used is Multiple Linear Regression Analysis. The research results show that (1) profitability has a positive effect on CSR Disclosure, (2) company size has no effect on CSR Disclosure, (3) leverage has no effect on CSR Disclosure, (4) eco-control has a positive effect on CSR Disclosure.
 Keywords: Profitability; Company Size; Leverage; Eco-control; CSR Disclosure

Corporate Social Responsibility Disclosure and Corporate Financial Performance: A Panel Data Analysis

This study investigates the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP) and how CSR activities impact a company's financial performance. We used STATA and a panel regression to analyze the data from sixty French-listed firms from 2012 to 2020. The data was obtained from the DataStream website. The results showed that CSR has a positive and significant impact on CFP. Additionally, companies that engage in socially responsible activities positively impact their financial performance. However, size and leverage have a negative impact on a company's financial performance, while market-to-book ratio, economic growth, and age have a positive impact.

Umur Perusahaan Memoderasi Pengaruh Corporate Social Responsibility Disclosure dan Profitabilitas Pada Nilai Relatif Perusahaan

The relative value of a company is an important aspect that shareholders need to pay attention to because it can reflect the financial performance of a company. The research aims to examine the influence of corporate social responsibility disclosure and profitability on the relative value of companies with company age as a moderating variable. Research was conducted on companies listed on the Indonesia Stock Exchange for the 2017-2021 period. In this research, a purposive sampling technique was used to obtain a sample of 117 observation data. The analysis technique in the research uses Moderated Regression Analysis with the help of SPSS software. The results of the research show that corporate social responsibility disclosure has a negative effect on the relative value of the company, profitability has a positive effect on the relative value of the company, company age weakens the effect of corporate social responsibility disclosure on the relative value of the company but company age does not moderate the effect of profitability on the relative value of the company.
 Keywords: Corporate Social Responsibility Disclosure; Profitability; Firm Age; Firm’s Relative Value

Pengaruh Kinerja Keuangan Terhadap Social Responsibility Perusahaan pada PT. Unilever Indonesia Tbk

This study has the aims of detecting the impact of ROA and ROE on CSR, the population of the financial statemenst of PT. Unilever Indonesia Tbk, sample of financial statements starting from 2018-2020 obtained 36 samples, the sampling mechanism is purposive sampling. As well as information collection techniques using documentation. Material testing using classical assumption test, multiple linear regression data analysis, hypothesis t test and F test. Based on simultaneous testing, the ROA impact on CSR is 0,000<0,05, ROE has an impact on CSR 0,033<0,05. The implementation of better corporate social responbility can practice good things for the sustainability of the company in the long term. CSR disclosure can also show that a company is carring out its obligations properly according to existing regulations and the surrounding population and environment of the company. With the activities carried out by CSR, the company can give people confidence in the company’s products after which the good name of the company becomes excellent in the eyes of the population, and can grow financial capacity which can be shown from the ROA and ROE ratio.

Pengaruh Corporate Social Responsibility, Ukuran Perusahaan, Dan Profitabilitas Terhadap Nilai Perusahaan

This study aims to examine the effect of Corporate social responsibility or CSR, company size, and profitability on the value of mining companies listed on the Indonesia Stock Exchange in 2019-2020. This study used data from 27 mining companies listed on the Indonesia Stock Exchange for the 2019-2020 period which was determined using the purposive sampling method that can be aplplied by data collection techniques using the archival method which was carried out by collecting financial reports and CSR disclosure reports from each sample company. Furthermore, the data analysis techniques used are descriptive statistical analysis, classical assumption testing, and multiple linear regression. This research supports signalling theory. Furthermore, this study shows that the independent variables in this study consisting of corporate social responsibility, company size, and profitability have a positive and significant effect to the dependent variable, namely the value of the company. This, with this research, researcher want to give recommendations for companies to pay more attention to aspects of corporate social responsibility, company size, and profitability that have an influence on the value of the company as well as the decision of investors in determining investments.

The Influence of Foreign Ownership, Environmental Certification, Board of Commissioners, Women Directors on Corporate Social Responsibility Disclosure

This study aims to analyze the effect of foreign ownership, environmental certification, board of commissioners, women directors on corporate social responsibility disclosure in manufacture companies listed on the Indonesia Stock Exchange (IDX) 2017-2021. The population of this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017–2021. The sampling method used was purposive sampling. There were 65 companies that met the criteria and became the research sample. The data analysis technique uses panel data regression with a random effect model.
 The results show that foreign ownership has an effect on CSR disclosure because foreigners are considered more concerned about corporate social responsibility. Environmental certification has an effect on CSR disclosure because certified companies expect their products to have a high reputation and be well received by the public and their stakeholders. The size of the board of commissioners has an effect on csr disclosure because of the authority they have, the board of commissioners can exert a strong enough influence to put pressure on management to disclose csr. Meanwhile, women directors has no effect on CSR disclosure due to the minimal percentage of women directors in the study compared to the presence of male directors. The results of this study are expected to provide an overview of the importance of social responsibility in companies. The company is not only seen as a profit-creating institution for the owners of capital, but also must be seen as an institution that creates community welfare by taking into account the sustainability of the environment in which the company operates, so that there is a balance between people, planet and profit in accordance with the Triple-P Bottom Line concept. The novelty of the research is the addition of women on directors variables using the upper echelon theory as well as being examined using the random effect model.
 Key words : Foreign ownership, environmental certification, board of commissioners, women on directors on corporate social responsibility disclosure.

Role of Corporate Social Responsibility (CSR) in the relationship between Green Accounting and Firm Value: Evidence from Indian Companies

This empirical research looks into how different factors including Green accounting, capital structure, and CSR influence Firm value. The research is quantitative in nature, drawing on data from 31 consumer durables companies listed on BSE. The analysis uses multiple regression technique. Additionally, the study uses a CSR disclosure index based on the Key Performance Indicators of the Global Reporting Initiative. This study found that Green Accounting and Capital Structure have effect on Firm Value, and that CSR can significantly moderate this relationship. The study's results shed new light on the complex interplay Green Accounting, financial flexibility, and firm value. It provides empirical data on the links between green accounting, capital structure, CSR, and firm. These results are useful for policymakers and managers who want to know how corporate social responsibility and environmental policies affect an organization's bottom line and its overall efficiency. DOI: https://doi.org/10.52783/tjjpt.v44.i4.807

Does corporate governance and profitability effect on corporate social responsibility disclosure?

Trust has a role in establishing successful business relationships, companies must be able to meet the needs of stakeholders. So that corporate governance mechanisms are needed. The CSR disclosure is a form of corporate responsibility to the community and the environmental aspect. Corporate governance in this study is examined in four separate variables, namely the tenure of directors, board size, independent commissioners, and managerial ownership. This study also analyzes the effect the profitability in increasing CSR disclosure level. The sample is 54 observation collected from companies listed on the IDX using the purposive sampling method. Multiple linear regression analysis is used. The results prove that board size, independent commissioners and profitability are able to increase the company's motivation to disclose CSR. While the tenure of directors and managerial ownership are not able to motivate in disclosing CSR. For further research, is expected to examine the characteristics of audit committees, institutional ownership and the number of audit committee meetings.

Corporate Social Responsibility (CSR) Disclosure, Internationalization and Tax Avoidance: Evidence from Indonesia

This research aims to explore the association between corporate social responsibility (CSR) disclosure, internationalization and tax avoidance of manufacturing companies in Indonesia during (2013-2015). The three-year-period was chosen to represent the last three years before the Global Reporting Initiative (GRI) guidelines, which are used to measure the CSR disclosure, transitioned to GRI Standards, which are more structured, flexible and dynamic. Under the GRI guidelines regime, we expected to document the associations among the three main variables before significant impacts of several events on reporting, such as the transition to new standards, the launch of Sustainable Development Goals (SDGs) and the implementation of tax amnesty in Indonesia in 2016. Empirical analyses were conducted on a sample comprising 153 firm-year observations. Relationships between CSR disclosure and tax avoidance, internationalization and tax avoidance and the moderating role of internationalization were examined using multiple regression analyses, whereas t-test analysis was used to find any significant differences in each association. The results indicated that CSR disclosure positively affects tax avoidance. Meanwhile, internationalization has no effect on tax avoidance and has no moderating role in the positive relationship between CSR disclosure and tax avoidance. This study is among the early research studies which provide evidence from Indonesia, as one of the G20 countries, investigating the associations among CSR disclosure, internationalization and tax avoidance, as well as the moderating role of internationalization, which has not been given much attention in the literature.

CSR Disclosure in Russian Systemic Companies: Driving Force of International Environment and Domestic Institutions

The paper explores a unique phenomenon of systemic companies and their corporate social responsibility (CSR) activities in a weak institutional environment and extensive institutional voids that push them to take diverse obligations. The paper uses the data from 223 Russian public companies and employs conventional statistical methods to test hypotheses. Our results show that systemic companies are inclined to disclose information about their CSR activities, especially, in their social dimension due to their social obligations in the local markets and necessity to gain legitimacy in host markets. Moreover, Russian companies with international activities are more active in CSR disclosure than purely domestic ones.

Pengaruh Kinerja Keuangan, Ukuran dan Umur Perusahaan Terhadap Nilai Perusahaan dengan Pengungkapan Corporate Social Responsibility (CSR) Sebagai Variabel Moderasi

This research aims to examine the influence of financial performance, company size, and age on company value with corporate social responsibility (CSR) disclosure. The dependent variable in this research is Company Value with Corporate Social Responsibility (CSR) Disclosure. Meanwhile, the independent variables are Financial Performance, Company Size, and Age. The population in this study were manufacturing companies listed on the Indonesian Stock Exchange for the 2016 - 2020 period. The sampling method used was purposive so 7 samples were obtained. The total amount of data processed in this research was 35 data. The type of data used is secondary data. The data analysis method used in this research is multiple regression. The results of this research indicate that financial performance has a significant effect on company value. Meanwhile, company size and age do not significantly affect company value.