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Voluntary Disclosure and Earning Responses Coefficient and with Corporate Social Responsibility as Intervening Variable

Author

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  • Arna Suryani

    (Batanghari University, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective � This research aims to find out how corporate social responsibility as an intervening variable on voluntary disclosure and earning responses coefficient.Methodology/Technique � The research sample was retrieved from LQ45 companies listed on the Indonesia Stock Exchange which consistently disclosure annual reports and sustainability reports for the period of 2017-2018. In analyzing the data, Structural Equation Modelling (SEM) with the support of SmartPLS (Partial Least Square) are used.Findings � Results show that voluntary disclosure has a positive and significant effect towards earning responses coefficient while voluntary disclosure has a negative effect towards corporate social responsibility. Moreover, corporate social responsibility also shows a negative effect towards Earning responses coefficient. Voluntary disclosure with corporate social responsibility as an intervening variable also shows a negative effect towards Earning responses coefficient.Voluntary disclosure can explain the variability of corporate social responsibility construct of 13,2%. Meanwhile, voluntary disclosure and corporate social responsibility can explain the variability of earning response coefficient construct of 22,7%, so that those two values are categorized as weak.Novelty � The results indicate that investors did not pay attention to the information of ccorporate social responsibility (CSR) that are shown in the annual financial reports. However, they give a positive response to voluntary disclosure of the company so that it effects the increase of Earning response coefficient.Type of Paper: Empirical

Suggested Citation

  • Arna Suryani, 2019. "Voluntary Disclosure and Earning Responses Coefficient and with Corporate Social Responsibility as Intervening Variable," GATR Journals afr177, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr177
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    References listed on IDEAS

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    1. Haniffa, R.M. & Cooke, T.E., 2005. "The impact of culture and governance on corporate social reporting," Journal of Accounting and Public Policy, Elsevier, vol. 24(5), pages 391-430.
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    3. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    4. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
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    More about this item

    Keywords

    Voluntary Disclosure; Corporate Social Responsibility; Earning Responses Coefficient.;
    All these keywords.

    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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