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Corporate Social Responsibility and Factors Affecting It: An Empirical Evidence from the Indonesian Capital Market

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  • Roni Budianto
  • Eko Suyono

Abstract

Purpose: This study aims to evaluate the influence of family ownership and profitability on corporate social responsibility disclosure with firm size as a control variable in manufacturing companies listed on the Indonesia Stock Exchange. Design/Approach/Methodology: Implementing a purposive sampling method, this study ended up with 32 manufacturing companies as a sample for the 2014-2018 periods (i.e., 160 observations). Findings: By using OLS regression, the findings show that profitability has a positive influence on CSR disclosure, meanwhile for family ownership does not. Moreover, firm size as a control variable influences positively on CSR disclosure. Practical Implications: With its limitation such as the relatively low number of samples, this study contributes to providing empirical evidence on factors influencing CSR disclosure in an emerging market context, i.e., Indonesia. Originality/Value: There is not a similar research using data from Indonesia neither the firm size as a control variable in the proposed model.

Suggested Citation

  • Roni Budianto & Eko Suyono, 2020. "Corporate Social Responsibility and Factors Affecting It: An Empirical Evidence from the Indonesian Capital Market," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 239-253.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:1:p:239-253
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    2. Sofia Brunelli & Salvatore Sciascia & Massimo Baù, 2024. "Nonfinancial reporting in family firms: A systematic review and agenda for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 162-179, February.

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    More about this item

    Keywords

    CSR; family ownership; profitability; firm size.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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