The Effect of Company Size, Return on Assets and Leverage on the Disclosure of Corporate Social Responsibility by the Companies that Present Sustainability Reporting on the Indonesia Stock Exchange

Masayu Mikial, Nina Fitriana, Meti Zuliyana, Rizal Effendi and Sasiska Rani
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Masayu Mikial: Tridinanti University, Palembang, Indonesia
Nina Fitriana: Tridinanti University, Palembang, Indonesia
Meti Zuliyana: Tridinanti University, Palembang, Indonesia
Rizal Effendi: Tridinanti University, Palembang, Indonesia
Sasiska Rani: Tridinanti University, Palembang, Indonesia

Oblik i finansi, 2022, issue 2, 111-117

Abstract: The organization's positive and negative impacts on the environment, society and economy are disclosed in the sustainability report. In Indonesia, a sustainable report is not a company obligation, so not many companies have published it. To meet the demands of stakeholders, companies usually express the corporate social responsibility in Sustainability Reporting. There are many factors that influence the disclosure of social responsibility, including company size, profitability and leverage. The purpose of this study is to empirically examine the effect of Company Size, Return on Assets and Leverage on The Disclosure of Corporate Social Responsibility in the company that presents Sustainability Reporting on the Indonesia Stock Exchange. This study uses secondary data obtained from annual reports and sustainability reports. The sample used is 80 companies listed on the Indonesia Stock Exchange in 2015-2018. This study analyzes the data using Partial Least Square. The results of this study indicate that Company size has no effect on corporate social responsibility disclosure. There is an effect of company profitability on corporate social responsibility disclosure. The direction of influence is positive which means if profitability increases it will be followed by an increase in corporate social responsibility disclosure. Leverage has no effect on corporate social responsibility disclosure. The findings in this study relate to Indonesian companies that publish sustainability reports and disclose social responsibility according to the GRI G4 standard.

Keywords: company size; return on assets; leverage; corporate social responsibility disclosure; sustainability reporting (search for similar items in EconPapers)
JEL-codes: M14 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2022:i:2:p:111-117

DOI: 10.33146/2307-9878-2022-2(96)-111-117

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