The Effect of Stock Ownership Toward the Corporate Social Responsibility (CSR) Disclosure

Abstract

This study aims at investigating the effect of stock ownership by foreign parties and government toward the level of corporate social responsibility (CSR) disclosure. The participating companies of Indonesia Sustainability Reporting Awards 2015 were selected as the samples by employing purposive sampling technique. This study employed secondary data from annual report, sustainability report, and financial report. Data were analyzed using simple linear regression analysis. The result shows that government and foreign ownership had no significant influence toward CSR disclosure.


 


 


Keywords: government ownership, foreign ownership, Indonesia sustainability, reporting awards, corporate social responsibility

References
[1] Amran, Azlan., Susela Devi, (2008) “The Impact of Government and Foreign Affiliate Influence on Corporate Social Reporting in Malaysia.” Accounting, Auditing and Accountability Journal, Volume Vol, 23, No.4, pp. 356-370


[2] Belkaoui, Ahmed., Philip G Karpik, (1989) “Determinants of the Corporate Decision to Disclose Social Information”, Accounting, Auditing and Accountability Journal, Vol. 2, No. 1,pp 36- 51.


[3] Carroll, A.B. (1991) “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders”. Business Horizons. Edisi JuliAgustus 1991. hal 39-48.


[4] Chariri, A. (2008). “Organizational Culture and Financial Reporting Practice in an Indonesian Insurance Company”. The 14th Euro-Asia Conference and The 3rd International Conference on Business and Management Research (ICBMR) Denpasar, Bali. 27-29 Agustus 2008.


[5] Dalilawati Zainal., Suria Zainuddin, (2013),Corporate Social Responsibility Reporting In Malaysia: A Research Note, Journal of Accounting Perspectives, Vol. 6, pp. 21-36


[6] Deegan, Craig., Michaela Rankin. (1996). “Do A Australian Companies Report Environmental News Objectively? An Analysis of Environmental Disclosures Firms Prosecuted Successfully by the Environmental Protection Authority”. Accounting Auditing and Accountability Journal.


[7] Faizah Darus, Engku Artini Che Ku Hamzah, Haslinda Yusoff (2013),CSR Web Reporting: The Influence of Ownership Structure and Mimetic Isomorphism, Procedia Economics and Finance 7,pp. 236 – 242


[8] Freeman, R.E., 1994, The Politics of Stakeholder Theory: Some Future Directions, Business Ethics Quarterly, Vol. 4/4, pp. 409-421.


[9] Freeman, R.E., 1999, Divergent Stakeholder Theory, Academy of Management Review, Vol. 24/2, pp.233-236.


[10] Global Reporting Initiative.(2014) Sustainability Reporting Guidelines.


[11] Graaf land, J. dan Bert van de Ven. (2006) “Strategic and Moral Motivation for CSR”. The Journal of Corporate Citizenship. Vol. 22. No.1,hal 111-123.


[12] Hartikayanti, Heni Nurani, Dessy Maryani (2015), The Influence Of Industry Profile, Growth Opportunities, And Public Ownership Due To The Corporate Social Responsibility Disclosure, International Journal Of Applied Business and Economic Research, Vol. 13, No. 7, pp. 5845-5868


[13] Hartikayanti, Heni Nurani, M. Ryan Trisyandi dan ER Budhi S, (2016) Effect of Corporate Characteristics on Environmental Disclosure, International Journal of Applied Business and Economic Research, Vol. 14. No.10. pp. 6111-6134


[14] Hayam Wahba, Khaled Elsayed. (2015). The mediating effect of financial performance on the relationship between social responsibility and ownership structure, FutureBusinessJournal,pp.1–12


[15] Isabelle Ducassya, Sophie Montandrau. Ducassy, S. Montandrau,(2015), Corporate social performance, ownership structure, and corporate governance in France, Research in International Business and Finance 34, pp.383–396


[16] Lindblom, C. K. (1994), “The Implications of Organizational Legitimacy for Corporate Social Performance and Disclosure”, Critical Perspectives on Accounting Conference, New York.


[17] Lois Mahoney, Robin W. Roberts (2007), Corporate social performance, financial performance and institutional ownership in Canadian firms, Accounting Forum 31,pp. 233–253


[18] Machmud dan Djakman. (2008). “Pengaruh Struktur Kepemilikan terhadap Luas Pengungkapan Tanggung Jawab Sosial (CSR Disclosure) pada Laporan Tahunan Perusahaan: Study Empiris pada Perusahaan Publik yang Tercatat di Bursa Efek Indonesia 2006.” Simposium Nasional Akuntansi 11.


[19] Mackling, William H. and Jensen, Michael C. 1976, “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of Financial Economics ( JFE), Vol. 3,No. 4, pp. 305-360


[20] Miriam Jankalova (2016), Approaches to the evaluation of Corporate Social Responsibility, Procedia Economics and Finance 39, pp. 580 – 587


[21] Mohamed Moustafa Soliman, Mohamed Bahaa El Din, and Ahmed Sakr (2012), Ownership Structure And Corporate Social Responsibility (CSR): An Empirical Study Of The Listed Companies In Egypt, International Journal of Social Sciences Vol 5 No 1, pp. 63 - 74


[22] Mukhtaruddin, Relasari, Messa Felmina (2014). Good Corporate Governance Mechanism, Corporate Social Responsibility Disclosure on Firm Value: Empirical Study on Listed Company in Indonesia Stock Exchange. International Journal of Finance & Accounting Studies. Vol. 2 No. 1 pp. 135-166.


[23] Peraturan Pemerintah No. 47 Tahun 2012 Tentang Tanggung Jawab Sosial dan Lingkungan Perseroan Terbatas (PT).


[24] Pour, Bahman Saeidi, Kamran Nazari, Mostafa Emami (2014). Corporate social responsibility: A Literature review. African Journal of Business Management. Vol. 8 (7) pp. 228-234.


[25] Qinghua Zhu, Junjun Liu, Kee-hung Lai, Zhuetal (2016).,Corporate social responsibility practices and performance improvement among Chinese national state-owned enterprises. Int. J. Production Economics 171,pp.417–426


[26] Republik Indonesia. (2007) Undang-undang No. 40 Tahun 2007 tentang Perseroan Terbatas. Departemen Hukum dan Hak Asasi Manusia Republik Indonesia.


[27] Roberts, R.W. (1992) “Determinants Of Corporate Social Responsibility Disclosure: An Application Of Stakeholder Theory”. Accounting, Organisations and Society. Vol. 17 No. 6. pp. 595-612.


[28] Suchman, M. C. (1995) “Managing Legitimacy: Strategic and Institutional Approaches”, Academy of Management Journal, Vol. 20, No. 3, pp. 571 - 610.


[29] Sufian, Mohammad Abu, Muslima Zahan (2013). Ownership Structure and Corporate Social Responsibility Disclosure In Bangladesh. International Journal of Economics and Financial Issues Vol. 3 No. 4 pp 901-909.


[30] Sugiyono. 2016. Metode Penelitian Bisnis. Bandung: Alfabeta


[31] Supriti Mishra, Damodar Suar. 2010. Does Corporate Social Responsibility Influence Firm Performance Of Indian Companies? Journal of Business Ethics (2010) 95. pp. 571-601.

[32] Undang Undang No. 23 Tahun 1997 tentang Pengelolaan Lingkungan Hidup


[33] Winarti, 2013, Pengaruh Kepemilikan Pemerintah (BUMN) Dan Kepemilikan Asing Terhadap Luas Pengungkapan Tanggungjawab Sosial Perusahaan Pada Laporan Tahunan Perusahaan, Jurnal TEKUN Volume IV, No.02, pp. 305-316


[34] Yongjia Rebecca Lina, Xiaoqing Maggie Fub (2017),Does institutional ownership influence firm performance? Evidence from China, International Review of Economics and Finance 49,pp. 17–57