Ex-Auditor CEOs and Corporate Social Responsibility (CSR) Disclosure: Evidence from a Voluntary Period of Sustainability Report in Indonesia

Agnes Aurora Ngelo, Yani Permatasari (), Siti Zaleha Abdul Rasid, Iman Harymawan and Wulandari Fitri Ekasari
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Agnes Aurora Ngelo: Department of Accounting, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60115, Indonesia
Yani Permatasari: Department of Accounting, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60115, Indonesia
Siti Zaleha Abdul Rasid: Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur 54100, Malaysia
Iman Harymawan: Department of Accounting, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60115, Indonesia
Wulandari Fitri Ekasari: Department of Accounting, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60115, Indonesia

Sustainability, 2022, vol. 14, issue 18, 1-23

Abstract: This study examines the relationship between ex-auditor CEOs in companies and corporate social responsibility disclosure in the Indonesian setting, where the presence of ex-auditor CEOs is increasing every year. We use the sample of 581 firm-year observations from 106 firms that published sustainability reports on the Indonesian Stock Exchange from 2010–2020. The results show that CEOs with an auditor background are more likely to disclose CSR information. This suggests that the auditor background of the CEO can affect corporate decision making, specifically the decision of CSR disclosure, because their auditing experience is also related to a monitoring mechanism of voluntary information, such as CSR disclosure. Moreover, auditors are practically accustomed to being required to have professional judgment when carrying out their work, so they are more aware and careful in terms of running a sustainable business by disclosing the CSR. This study enhances the literature by providing insights into the disclosure practice of CSR among firms with ex-auditor CEOs that are robust to Heckman’s two-stage model and the Coarsened Exact Matching test. This study provides empirical evidence of a relationship between ex-auditor CEOs and CSR information disclosure and several additional analyses in the period of a voluntary sustainability report in Indonesia.

Keywords: ex-auditor CEO; CSR disclosure; voluntary reporting; corporate sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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