IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v6y2019i3p1297-1306.html
   My bibliography  Save this article

Motivation for disclosure of corporate social responsibility: evidence from banking industry in Indonesia

Author

Listed:
  • Atang Hermawan

    (Pasundan University, Indonesia)

  • Ardi Gunardi

    (Pasundan University, Indonesia)

Abstract

This research aims to investigate determining factors that influence corporate social responsibility disclosure (CSR disclosure) by examining the effects of company size, profitability, leverage, public ownership, board of commissioner, independent commissioner, and the size of the audit committee. For this study, the samples are banking firms that are listed in Indonesian Stock Exchange between the year 2010-2014. The data were extracted from audited financial reports, and sustainability reports (if available). Quantitative using secondary data. Multiple regression is the analysis performed. Results from this study showed that profitability, public ownership, board of commissioner, and independent commissioner has a positive impact towards corporate social responsibility disclosure, whilst leverage and audit committee negatively affected the company. Furthermore, there was not enough evidence to prove that the size of the company is affecting companies to disclose their corporate social responsibility activities.

Suggested Citation

  • Atang Hermawan & Ardi Gunardi, 2019. "Motivation for disclosure of corporate social responsibility: evidence from banking industry in Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1297-1306, March.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1297-1306
    DOI: 10.9770/jesi.2019.6.3(17)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/23/Hermawan_Motivation_for_disclosure_of_corporate_social_responsibility_evidence_from_banking_industry_in_Indonesia.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/286
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2019.6.3(17)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dulacha Barako & Alistair Brown, 2008. "Corporate social reporting and board representation: evidence from the Kenyan banking sector," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(4), pages 309-324, November.
    2. Cuadrado-Ballesteros, Beatriz & Rodríguez-Ariza, Lázaro & García-Sánchez, Isabel-María, 2015. "The role of independent directors at family firms in relation to corporate social responsibility disclosures," International Business Review, Elsevier, vol. 24(5), pages 890-901.
    3. Ardi Gunardi & Erie Febrian & Aldrin Herwany, 2016. "The implication of firm-specific characteristics on disclosure: the case of Indonesia," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 9(4), pages 379-387.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando García & Jairo González-Bueno & Javier Oliver & Nicola Riley, 2019. "Selecting Socially Responsible Portfolios: A Fuzzy Multicriteria Approach," Sustainability, MDPI, vol. 11(9), pages 1-14, April.
    2. Fernando García & Jairo González-Bueno & Francisco Guijarro & Javier Oliver, 2020. "Forecasting the Environmental, Social, and Governance Rating of Firms by Using Corporate Financial Performance Variables: A Rough Set Approach," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    3. Armenia Androniceanu, 2019. "Social Responsibility, an Essential Strategic Option for a Sustainable Development in the Field of Bio-Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 503-503, August.
    4. Hafizah Abd-Mutalib & Che Zuriana Muhammad Jamil & Rapiah Mohamed & Nor Atikah Shafai & Saidatul Nurul Hidayah Jannatun Naim Nor-Ahmad, 2021. "Firm and Board Characteristics, and E-Waste Disclosure: A Study in the Era of Digitalisation," Sustainability, MDPI, vol. 13(18), pages 1-14, September.
    5. Bedjo Santoso & Widodo Widodo & Muhammad Taufiq Akbar & Khaliq Ahmad & Rahmat Heru Setianto, 2022. "The Determinant of Sukuk Rating: Agency Theory and Asymmetry Theory Perspectives," Risks, MDPI, vol. 10(8), pages 1-23, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sohel Mehedi & Md. Maniruzzaman & Md Akhtaruzzaman, 2024. "Board Flexibility in Diversity, Experienced CEOs and Corporate Sustainability Disclosure: Evidence from the Emerging Market," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(2), pages 261-282, June.
    2. Cheng Guping & Muhammad Safdar Sial & Peng Wan & Alina Badulescu & Daniel Badulescu & Talles Vianna Brugni, 2020. "Do Board Gender Diversity and Non-Executive Directors Affect CSR Reporting? Insight from Agency Theory Perspective," Sustainability, MDPI, vol. 12(20), pages 1-25, October.
    3. Faisal Hameed & Mohammad Alfaraj & Khizar Hameed, 2023. "The Association of Board Characteristics and Corporate Social Responsibility Disclosure Quality: Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 15(24), pages 1-23, December.
    4. Mehmoona Sharif & Kashif Rashid, 2014. "Corporate governance and corporate social responsibility (CSR) reporting: an empirical evidence from commercial banks (CB) of Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2501-2521, September.
    5. Laura Girella & Paola Rossi & Stefano Zambon, 2019. "Exploring the firm and country determinants of the voluntary adoption of integrated reporting," Business Strategy and the Environment, Wiley Blackwell, vol. 28(7), pages 1323-1340, November.
    6. Samara, Georges & Jamali, Dima & Sierra, Vicenta & Parada, Maria Jose, 2018. "Who are the best performers? The environmental social performance of family firms," Journal of Family Business Strategy, Elsevier, vol. 9(1), pages 33-43.
    7. Rupjyoti Saha & K. C. Kabra, 2020. "Corporate Governance and Voluntary Disclosure: A Synthesis of Empirical Studies," Business Perspectives and Research, , vol. 8(2), pages 117-138, July.
    8. Nooraisah Katmon & Zam Zuriyati Mohamad & Norlia Mat Norwani & Omar Al Farooque, 2019. "Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market," Journal of Business Ethics, Springer, vol. 157(2), pages 447-481, June.
    9. Veronica Tibiletti & Pier Luigi Marchini & Katia Furlotti & Alice Medioli, 2021. "Does corporate governance matter in corporate social responsibility disclosure? Evidence from Italy in the “era of sustainability”," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 896-907, March.
    10. Andewi Rokhmawati & Ardi Gunardi & Matteo Rossi, 2017. "How Powerful is Your Customers Reaction to Carbon Performance? Linking Carbon and Firm Financial Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 85-95.
    11. Elisa Menicucci & Guido Paolucci, 2022. "Board Diversity and ESG Performance: Evidence from the Italian Banking Sector," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    12. Douglas A. Adu & Naheed N. Roni, 2024. "Bank climate change initiatives, ownership structures, and corporate governance mechanisms: Evidence from emerging economies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3039-3077, May.
    13. Ahmed Ayman & Moataz El-Helaly & Nermeen Shehata, 2019. "Board diversity and earnings news dissemination on Twitter in the UK," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 715-734, September.
    14. Giuseppe Nicolò & Gianluca Zanellato & Benedetta Esposito & Adriana Tiron‐Tudor, 2024. "Cultural dimensions and sustainability disclosure in the banking sector: Insights from a qualitative comparative analysis approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8086-8101, December.
    15. Valentina Lagasio & Marina Brogi, 2021. "Market reaction to banks’ interim press releases: an event study analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(1), pages 95-119, March.
    16. Truc (Peter) Do & Kathleen Herbohn, 2024. "The impact of board ethnic diversity and Chief Executive Officer role on corporate social responsibility," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(1), pages 575-605, March.
    17. Eduardo Ortas & Igor Álvarez & Eugenio Zubeltzu, 2017. "Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis," Sustainability, MDPI, vol. 9(6), pages 1-26, June.
    18. Amin, Marian H. & Mohamed, Ehab K.A. & Elragal, Ahmed, 2021. "CSR disclosure on Twitter: Evidence from the UK," International Journal of Accounting Information Systems, Elsevier, vol. 40(C).
    19. Javier Parra-Domínguez & Fátima David & Tania Azevedo, 2021. "Family Firms and Coupling among CSR Disclosures and Performance," Administrative Sciences, MDPI, vol. 11(1), pages 1-13, March.
    20. Ozbek, O. Volkan, 2021. "Market Performance of Spun-Off Subsidiaries: Effects of Board Independence and Directors’ Industry Experience," American Business Review, Pompea College of Business, University of New Haven, vol. 24(1), pages 249-267, May.

    More about this item

    Keywords

    corporate social responsibility disclosure; company characteristic; corporate governance; banking firms;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    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:ssi:jouesi:v:6:y:2019:i:3:p:1297-1306. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.