THE EFFECT OF FINANCIAL PERFORMANCE ON CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE: STUDY OF INDONESIA’S MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE IN THE YEAR 2015-2017
Abstract
This research relied on an abundant phenomenon of the CSR disclosure on
companies’ annual report in the manufacturing sector since the CSR concept was more
on the business organization agenda, due to its ability to increase the competitiveness
of a firm, especially in the manufacturing sector as one of the major sectors which
dominate the business environment in Indonesia. In addition, this research aimed to
examine the effect of financial performance on corporate social responsibility
disclosure by conducting a quantitative study of Indonesia’s manufacturing companies
listed in Indonesia Stock Exchange in the year 2015-2017. This issue attracted the
researcher to deeply examine on the relationship between the companies’ financial
performance and CSR disclosure in their annual reports, by considering the companies’
financial performance measurement including the company’s profitability (Return on
Equity), Leverage (Debt to Assets), and Firm Size. To examine those measurement,
this research also used the adoption of General Reporting Initiative (GRI) as a based
on the checklist of Corporate Social Responsibility disclosure items that companies
had been disclosed in their annual report.
In this research, data were collected by obtaining the 146 companies’ annual
report YEAR 2015-2017 of all manufacturing companies that listed in Indonesia Stock
Exchange via the website www.idx.co.id and analyzes the annual report to determine
the suitable companies and all the data regarding the characteristics of the purposive
sampling method. 30 manufacturing companies which fulfill all the criteria included as
the samples to obtain the data for this research. As the result, this research showed that
all of the variables of company’s profitability (Return on Equity), Leverage (Debt to
Assets), and Firm Size affected the Corporate Social Responsibility Disclosure.
Collections
- Akuntansi [4660]