Corporate Social Responsibility Disclosure and Financial Performance: A State Owned Enterprises Case Study (original) (raw)
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Studi Ilmu Manajemen dan Organisasi (SIMO, 2022
To see if corporate social responsibility (CSR) is linked to financial performance in Indonesian enterprises. Despite the fact that CSR was first revealed in Indonesia. Method: This study, which is based on a longitudinal information study, consists of the two hundred most famous organizations, which were chosen from 672 recorded corporations that lead Bursa Indonesia between 2010 and 2020 by content Analysis. Secondary data analysis of recorded market data from Indonesia was used in this study. The necessary information was retrieved and recorded so that it could be analyzed subsequently. Additionally, SPSS was used to analyze the filtered data from which a generalized linear regression model was adopted. Result: The linearity test reveals a linear link between Corporate Social Responsibility and Firm Performance. Leverage, income per share, firm size, resource turnover, and corporate social responsibility have all been identified as critical indicators of an organization's financial performance in past studies. The present results corroborate this. Limitation: Expanding the specimen estimate, possibly to different agencies not fundamentally recorded; probably to 250 best organizations in Indonesia may consider a preferred measure of the impact that CSR has on the financial performance of Indonesian agencies. Contributions: Through its observations and discussions, this research contributes to theoretical and methodological advancements in the field of business. The report reinforces and advises businesses on the importance of corporate responsibility in their quest to increase financial performance, particularly in Indonesia. If enterprises follow the study's recommendations, they can achieve unprecedented levels of financial enactment.This research makes significant contributions to both theoretical and methodological advancements in the field of business, particularly regarding corporate responsibility and financial performance. By highlighting the critical role of corporate responsibility, the study provides valuable insights for businesses, especially in Indonesia, aiming to enhance their financial outcomes. The findings underscore the positive impact of adopting responsible business practices, offering practical recommendations that, if implemented, can lead to substantial improvements in financial performance. The research serves as a guide for enterprises seeking sustainable growth, positioning corporate responsibility as a key driver of long-term success.
Interaction between Corporate Social Responsibility Disclosure and Profitability of Indonesia Firms
2012
Corporate Social Responsibility has a positive impact to the financial performance of the firm. Besides, to implement the corporate social responsibility programs the firm needs funds that obtained from its revenue and profit. This paper studies the interaction between the social performance of the firms and the profitability of the firms. Social performance is measured by corporate social responsibility disclosure score and the profitability is measured by Return on Asset (ROA). Corporate responsibility disclosure gives information about the concern of the company to the use of energy, the environment, employee relations, product, and community involvement. Using a sample of 25 firms from SRI-KEHATI Index and covering the period 2005 -2010, the OLS model uses in this study. SRI-KEHATI Index is stock market index that consist of 25 Indonesia firms that have excellent performance in promoting sustainable businesses, as well as having an awareness of environmental, social and good corporate governance. During the period of [2005][2006][2007][2008][2009][2010] there are evidences that the social performance of firms is increase and the profitability of the firms also increase except in year 2008 as an impact of financial crisis in US. This study finds that there is positive impact of the social performance to the profitability of the firms and also there is positive impact of the profitability of the company to the social performance of the firms. The result of this study indicates that there is a positive interaction between corporate social responsibility disclosure and profitability of firms.
Proceedings of the 1st International Conference on Science, Health, Economics, Education and Technology (ICoSHEET 2019), 2020
This study aims to analyze and explain the effect of Corporate Social Responsibility (CSR) on firm value, CSR on financial performance, and financial performance as a mediator of the effect of CSR on firm value. Data collection method used in this study is documentation of annual report and Indonesia Capital Market Directory (ICMD) issued by the company. The sampling method using purposive sampling method obtained 23 companies as the final sample. The data analysis used was path analysis. The population of this study is all mining companies listed in Indonesia Stock Exchange over the period 2013-2016. The results show that CSR does not affect on financial performance that measured by return on asset (ROA), CSR affects the financial performance that measured by Return on Sales (ROS), CSR has an effect on firm value that measured by Tobin's Q, financial performance that measured by ROA as a mediator of the effect of CSR on firm value, ROS does not mediate the effect of CSR on firm value.
al-Uqud : Journal of Islamic Economics, 2020
The influence of social care by business entities to their financial performance has been continuously debated in previous management reseearch. Nevertheless, studies about the influence of CSR on Islamic banks financial performance were rarely done. Therefore, this studyaims to examine the influence of Corporate Social Responsibility Disclosure (CSRD) on profitability as measured by Return On Assets (ROA), Return On Equity (ROE), Net Profit Margin (NPM) and Investment Account Holders (IAH) by debt and financing ratio. Data was obtained from Islamic banks in Indonesia through observation from 2012 to 2018 that analyzed by panel data regression and Fixed Effect Model (FEM). The results showed that the CSRD did not have a positive influence on ROA, ROE, NPM, IAH, Debt, and Financing Ratio. Therefore, the legitimacy theory was not proven in this study.
The Journal of Asian Finance, Economics and Business, 2021
Corporate Social Responsibility (CSR) is the obligations that the company must carry out. It follows Law no. 40 of 2007 concerning limited liability company article 74, which regulates the obligation to carry out social and environmental responsibility. CSR is needed so that stakeholders, including the community, know all forms of corporate responsibility to society and the environment. Company characteristics such as company size, company type, and leverage are factors why a company must disclose its CSR. CSR will gain the community's trust so that it will have an impact on improving company performance. The purpose of this study is to obtain evidence and to draw conclusions on whether the factors of company size, leverage, and type of company affect CSR disclosure. The data in this study uses multiple regression analysis with secondary data and purposive sampling. The results suggest that type and leverage significantly affect CSR disclosure; the size variable does not affect CSR disclosure. The CSR variable does not affect return on assets (ROA). Company characteristics variables (type, leverage, and size) do not affect ROA. This research is expected to contribute both academically and practically to increasing the academic community's expertise, competence, and knowledge.
2020
Corporate social responsibility disclosure on company performance will have an impact on the longterm investment decisions of stakeholders. This study tested whether CSR disclosure had an influence on the financial performance and market of banking companies. This study utilized corporate social responsibility disclosure (CSRD) as the independent variable. Reports from 10 companies for four years (2015-2018) that have been listed on the Indonesia Stock Exchange were selected using purposive sample method. Data analysis utilized regression with SPSS 21. The result showed that CSR disclosure had an influence on the financial performance of banking companies as the financial performance determined by Return on Investment (RoI). Meanwhile, CSR disclosure had no influence on company market performance, but this was affected by leverage, company size, and company age. This was because stakeholders had difficulties in getting the information needed by companies for decisionmaking and they ...
This study, using longitudinal data analysis, attempts to address the question of whether CSR is linked to financial performance for PLCs in Malaysia. Despite CSR disclosure being at a nascent stage in Malaysia, the findings of this study solidly support the outcome of the majority of results in developed markets. It was found to be positively related to financial performance. This suggests that local firms can achieve advanced levels of financial performance if they engage in social activities. The findings also confirm that there is limited evidence of a significant effect of CSR on financial performance in a long-term relationship.
Profitability and Corporate Social Responsibility: An Analysis of Indonesia’s Listed Company
Asian Law eJournal, 2013
The purpose of this study is to test whether companies’ profitability contributes to Corporate Social Responsibility in the financial report. The research includes company’s profitability of net profit margin, ROA and ROE, in relation to number of lines in CSR disclosure. Firm’s size, Kompas100 companies and industry-specific are included as control variables. The samples are taken from 543 listed companies in Indonesia from 2007 to 2009 after fulfilling certain requirements. The result suggests not all profitability ratios are significantly correlated to CSR disclosure. Kompas100 and industry-specific tend to have a relationship with number of lines in the CSR report. This study suggests large size firms disclose more CSR activities those of smaller ones.
This study aims to analyze and explaining effect of corporate social responsibility information disclosure on financial performance and firm value in banking industry listed at Indonesia Stock Exchange. This study uses quantitative methods with positivism approach. Research objects were 15 banking companies listed at Indonesia Stock Exchange based on population criteria with observation period 2008-2011. This study uses secondary data derived from annual reports and financial statements. Data analysis used was Path Analysis. Research results show corporate social responsibility information disclosure affects on all financial performance measurement namely Return on Assets (ROA), Return on Equity (ROE) and Return on Sales (ROS). Corporate social responsibility information disclosure affect on firm value that measured by Tobin's Q. Financial performance that measured by ROA and ROE affect on firm value that measured by Tobin's Q, but ROS did not affect on firm value that measured by Tobin's Q.
Corporate Social Responsibility Disclosure (CSRD) Quality in Indonesian Public Listed Companies
Polish Journal of Management Studies, 2019
Corporate social responsibility disclosure (CSRD) research trends shows a growing absence of information thoroughness and a decline in its trustworthiness, creating apprehension about the whole practice in reporting. The objective of this study is to determine the quality of the current CSRD on environmental and social information disclosure of Indonesian public listed companies (PLC) in the 2017 annual report, according to the latest GRI standards which is effective in 2018 as a guideline comprised of 25 items which is comply in Indonesia. The data collected were based on the environment and social items disclosed in annual reports published by all sectors of the company excluding banking and financial firms and companies with missing data of the year 2017. Descriptive analysis and multiple regression model are applied in this study and estimated using SPSS version 22. We found that the score of CSRD quality among the Indonesian PLC is mediocre. The average score of CSRD quality indicates that Indonesian PLC struggle to satisfy stakeholders' expectation.