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

Ferry Aditya ()

Business and Economic Research, 2016, vol. 6, issue 2, 51-64

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.

Keywords: Corporate social responsibility; Earning quality; Accrual quality (search for similar items in EconPapers)
Date: 2016
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