ACCOUNTING & FINANCE CORNER
Friday July 19th 2019

The Impact of Good Corporate Governance on The Corporate Social Responsibility Disclosure

Salis Musta Ani
salismusta@yahoo.co.id

Dwi Martani
dwimartani@yahoo.com

Luluk Widyawati
widyawati.luluk@gmail.com

Abstract

The study examines the effect of corporate governance on the disclosure of Corporate Social Responsibility. This study uses Corporate Social Disclosure Index (CSDI) with reference to the Global Report Initiative (GRI) Index and the index based on disclosures made by ASTRA which is considered as a benchmark for CSR disclosure in Indonesia. Control variables used in this study are the size of the company, leverage, and profitability to represent the political hypothesis, debt covenants, and bonuses. The sample is 108 non-financial companies listed on the Jakarta Stock Exchange (JSE) in 2004 to 2005. Data is collected from company annual reports obtained from the JSE website, Indonesia capital market directory, and JSE reference center. The analysis is done using regression testing with panel data analysis.

The result shows that the Corporate Governance Index (CGI) has a significant positive correlation to both the CSDI GRI and CSDI ASTRA. This result verifies that the paradigm which emerged in a variety of discourses about the correlation of Corporate Governance and CSR Disclosure is proven in empirical research. It also provides broad opportunities for GRI to develop and become a useful guide in Indonesia. The result is supported by a significant increase in CSDI GRI between 2004 and 2005. However, the small average of CSDI ASTRA suggests that CSR disclosures have not received priority in corporate disclosure by companies in Indonesia so that transparency regulations did not be well implemented.

The result of this study supports the research by Khomsiyah (2003) who found relationship between corporate governance and disclosure. Moreover, this study supports research by Haniffa and Cooke (2005), Sembiring (2005), Chapple and Ucbasaran (Working Paper, University of Nottingham), and Sayekti (2006) who found a significant positive relationship between some governance proxy with CSR disclosures. The only significant control variable is company size, while profitability and leverage are not significant.

Keyword: Corporate Social Responsibility, CSR, Corporate Governance, GRI

Dipresentasikan pada 23rd Asian-Pacific Conference on International Accounting Issues, Di Beijing – China, 16 – 19 Oktober 2011, Penyelenggara: Craig School of Business. The Impact of Good Corporate…

Latest Topics

Kurikulum Akuntansi Publik

Saat diminta bicara kurikulum akuntansi publik, saya pribadi merasa kurang percaya diri. Pertama karena pemahaman saya [Read More]

Overview PSAK 71 Instrumen Keuangan, PSAK 72 Pendapatan dari Kontrak Pelanggan, PSAK 73 Sewa

Berikut sedikit update overview PSAK baru. fokus pada PSAK 71, 72 dan 73   salam Perkembangan Standar & [Read More]

Overview Standar Akuntansi Keuangan Terbaru – UDINUS

PSAK baru tidak akan pernah selesai diajarkan sampai dengan standar tersebut efektif. Bahkan saat PSAK tertentu efektif [Read More]

AKUNTANSI BADAN LAYANAN UMUM / BLU

BLU adalah badan yang berada di bawah Pemerintah Pusat atau Pemerintah Daerah yang mengemban tugas untuk memberikan [Read More]

Perkembangan PSAK dan PSAK 46 Akuntansi Pajak Penghasilan

PSAK 46 Akuntansi Pajak Penghasilan, sering dilupakan dalam pembelajaran akuntansi keuangan, namun pada sisi lain Dosen [Read More]

Popular Topics

Dokumen Publikasi puisi

Pages

Insider

Archives