An Empirical Examination of the Relationship between corporate social responsibility disclosure and financial performance in an emerging market (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.
SHS Web of Conferences
Of late, there has been growing demand for companies to intensify its corporate social responsibility (CSR). It is no longer one of the responsibilities of the companies but has become the responsibility of companies to give back to the society in which it has been operating and making huge profit. Unfortunately there appears to be a wide gap between the level of CSR awareness between companies from developed countries and those from the developing companies. Companies from developed countries have higher CSR level of awareness and faced no difficulty in disclosing their CSR activities relatively to the companies in the developing countries (including Malaysia). Thus, the aim of this paper is to examine the level of CSR disclosure of consumer products and trading and services industries from Malaysia. In addition, the study also would like to ascertain if the level of CSR disclosure influences the performance of the company in terms of its return on asset (ROA) and firm value (Tobin's Q). The study starts with the development of CSR disclosure index and using the index to determine if company's performance is related to its contribution to the society. Panel data is used to achieve the second objective. Findings of the study provide positive, negative and insignificant results between CSR activities on the company performance.
Sosial Budaya
In today’s business environment, the maximization of shareholders wealth is not the only objective of a company. By engaging in the Corporate Social Responsibility (CSR) program, companies are also responsible for the interest of stakeholders and society at large. CSR disclosure is believed to improve financial performance. In State Owned Enterprises (SOE), however, the validity of this relationship has been called into question. In this paper, the main objective is to investigate the influence of CSR disclosure on financial performance in SOE. In relation to the measurement of financial performance, this study takes into account three indicators: Return on Equity (ROE), Earning Per Share (EPS), and Net Profit Margin (NPM). In this study, data from state owned enterprises, which were listed on the Indonesian Stock Exchange from the period of 2011 to 2015, were analyzed using simple regression method. The data used in this study took the form of financial and sustainability report is...
Company characteristics and corporate social responsibility disclosure of Malaysian listed companies
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Towards realizing Malaysia’s Vision 2020,Corporate Social Responsibility (CSR) has been viewed as an important part for a business to succeed.With the increasing awareness and global demand for better CSR practices, companies need recognize and adopt them into their management practices.However, in today’s emerging market, several factors could influence the adoption of CSR as part of their business strategy. This research aims to identify the focus level of Corporate Social Responsibility Disclosure (CSRD) in Malaysia Meanwhile, four identified factors such as company size, profitability, share return, and industry type were tested to the CSRD.Secondary data obtained from 100 public listed companies across industries were analysed and reported in this study. Constructed CSRD checklist was used to identify the focus level of CSRD, and multiple regression analysis was employed to test the relationships of the above stated variables.In conclusion, the highest and least disclosures wer...
Accounting and Finance Research, 2018
The nexus between Corporate Social Responsibility Disclosure (CSRD) and financial performance is an ongoing debate and a puzzle encountered by business organizations. This study is an attempt to address the question of whether CSRD is linked to financial performance of companies quoted on the Banks, Finance and Insurance sector in Sri Lanka. The sample includes only the companies that devote a separate section to disclose Corporate Social Responsibility (CSR) activities in their annual reports as failure to disclose CSR in the annual reports will have a material effect on findings. Corporate Financial Performance (CFP) is measured through the use of Return on Assets (ROA) and Return on Equity (ROE) controlled for size and leverage. Content analysis was utilized to develop the Corporate Social Responsibility Disclosure Index (CSRDI). Two multiple regression models were analyzed using Stata. Findings of the study revealed that there is a significant association between Corporate Socia...
Future Business Journal
The main objective of this study is to determine the CSR disclosure and to find out the association between CSR and FP by the public companies of Maldives. This study used a mixed-method research choice and is longitudinal research. The study period was from 2014 to 2018. Data were collected from annual reports of the listed companies in MSE. The sampling technique used was judgmental sampling, and the data were analyzed from STATA 15 software by using panel data regression. The finding reveals that diversity and ROA, environment and ROE, diversity, and EPS, and when the size of the firm controlled, there exhibit significant negative relation between CSR and ROA; hence, it can conclude that there exists a significant negative relationship between CSR and FP. This study has implications for the academician and corporate world in understanding CSR and FP in developing countries like the Maldives. One of the main consequences of this study is the CSR framework adopted in this study whi...