IDEAS home Printed from https://ideas.repec.org/a/mth/ber888/v6y2016i2p51-64.html
   My bibliography  Save this article

Corporate Social Responsibility (CSR) Performance and Accrual Quality: Case study on Firms Listed on Indonesia Stock Exchange (IDX)

Author

Listed:
  • Ferry Aditya

    ()

Abstract

Research on the impact of corporate social responsibility (CSR) performance to the financial performance have been widely studied previously. However, there were a few studies investigate the effect of CSR on accrual quality which is one of the attributes of earning quality. The aim of this study is to examine the affect of CSR toward accrual quality in the context of Indonesia, where the empirical results of the benefits of CSR implementation are still scant. Research samples are all listed companies in Indonesia Stock Exchange (IDX) in miscellaneous industry sector for period 2009 to 2013. There are 92 firm years included in this study. CSR is measured by scoring CSR activities of the firm based on GRI Index guideline version 3.1, whereas attributes of earning quality used in this study is accrual quality. We include two control variables in this research model i.e. firm size and leverage. The results show that CSR performance do not explain the changes in accrual quality. Leverage has no effect on accrual quality as well. On the other hand firm size has a significant effect on CSR performance however the sign of association is contrary with the expected.

Suggested Citation

  • Ferry Aditya, 2016. "Corporate Social Responsibility (CSR) Performance and Accrual Quality: Case study on Firms Listed on Indonesia Stock Exchange (IDX)," Business and Economic Research, Macrothink Institute, vol. 6(2), pages 51-64, December.
    • Handle: RePEc:mth:ber888:v:6:y:2016:i:2:p:51-64
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/ber/article/view/9752/7913
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/ber/article/view/9752
    Download Restriction: no

    References listed on IDEAS

    as
    1. Julie Pirsch & Shruti Gupta & Stacy Grau, 2007. "A Framework for Understanding Corporate Social Responsibility Programs as a Continuum: An Exploratory Study," Journal of Business Ethics, Springer, vol. 70(2), pages 125-140, January.
    2. Mohammad Badrul Muttakin & Arifur Khan & Mohammad I Azim, 2015. "Corporate social responsibility disclosures and earnings quality: Are they a reflection of managers’ opportunistic behavior?," Managerial Auditing Journal, Emerald Group Publishing, vol. 30(3), pages 277-298, March.
    3. Vicente Lima Crisóstomo & Fátima de Souza Freire & Felipe Cortes de Vasconcellos, 2011. "Corporate social responsibility, firm value and financial performance in Brazil," Social Responsibility Journal, Emerald Group Publishing, vol. 7(2), pages 295-309, June.
    4. Chen, Lujie & Feldmann, Andreas & Tang, Ou, 2015. "The relationship between disclosures of corporate social performance and financial performance: Evidences from GRI reports in manufacturing industry," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 445-456.
    5. Denise Luethge & Helen Guohong Han, 2012. "Assessing corporate social and financial performance in China," Social Responsibility Journal, Emerald Group Publishing, vol. 8(3), pages 389-403, July.
    6. Paul Dunn & Barbara Sainty, 2009. "The relationship among board of director characteristics, corporate social performance and corporate financial performance," International Journal of Managerial Finance, Emerald Group Publishing, vol. 5(4), pages 407-423, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Corporate social responsibility; Earning quality; Accrual quality;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:ber888:v:6:y:2016:i:2:p:51-64. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Technical Support Office) The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct email address. General contact details of provider: http://www.macrothink.org/journal/index.php/ber .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.