Social and environmental disclosure in Indonesia: Does ownership matter?

Nurnika Asri Dewi, Setianingtyas Honggowati

Abstract


Research aims: This study aims to analyze the effect of ownership structure on social and environmental disclosure in the annual reports of companies in Indonesia.
Design/Methodology/Approach: This study used 208 panel data from 52 companies in the mining and real estate and building construction sectors. The dependent variable in this study was obtained by analyzing the content of the company's annual report. The hypothesis in this study was then tested using multiple linear regression.
Research findings: The regression test results revealed that institutional ownership and managerial ownership had a significant effect on social and environmental disclosure. In contrast, multiple large shareholder structures (MLSS) had an insignificant effect on social and environmental disclosure.
Theoretical contribution/Originality: This study enriches the literature about social and environmental disclosure with a new approach named SEDI. In addition, this research contributes to the scrutiny of the effect of MLSS on social and environmental disclosure, especially in the Indonesian context. This study also provides empirical evidence on the influence of ownership structure on social and environmental disclosure.
Research limitation/Implication: This research was only limited to companies with many contacts with social and environmental issues, namely mining, agriculture, and real estate and building construction. Meanwhile, other companies are expected to be scrutinized in future research.


Keywords


Social and Environment Disclosure Index; MLSS; Ownership Structure

Full Text:

PDF

References


Abdullah, S. N., & Nasir, N. M. (2004). Accrual management and the independence of the boards of directors and audit committees. International Journal of Economics, Management and Accounting, 12(1).

Acar, E., Tunca Çalıyurt, K., & Zengin-Karaibrahimoglu, Y. (2021). Does Ownership Type Affect Environmental Disclosure? International Journal of Climate Change Strategies and Management, 13(2), 120–141. https://doi.org/10.1108/IJCCSM-02-2020-0016

Ahmad, H., Yaqub, M., & Lee, S. H. (2023). Environmental-, social-, and governance-related factors for business investment and sustainability: A scientometric review of global trends. Environment, Development and Sustainability, 1-23. https://doi.org/10.1007/s10668-023-02921-x

Ali, W., Frynas, J. G., & Mahmood, Z. (2017). Determinants of corporate social responsibility (CSR) disclosure in developed and developing countries: A literature review. Corporate Social Responsibility and Environmental Management, 24(4), 273-294. https://doi.org/10.1002/csr.1410

Anissa, C. D., & Machdar, N. M. (2019). Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial dan Profitabilitas Terhada Pengungkapan Tanggung Jawab Sosial Perusahaan. Kalbisocio: Jurnal Bisnis Dan Komunikasi, 6(1), 9–18.

Astuti, F. Y., Wahyudi, S., & Mawardi, W. (2018). Analysis of effect of firm size, institutional ownership, profitability, and leverage on firm value with corporate social responsibility (CSR) disclosure as intervening variables (study on banking companies listed on BEI period 2012-2016). Jurnal Bisnis STRATEGI, 27(2), 95–109.

Attig, N., El Ghoul, S., & Guedhami, O. (2009). Do multiple large shareholders play a corporate governance role? Evidence from East Asia. Journal of Financial Research, 32(4), 395-422. https://doi.org/10.1111/j.1475-6803.2009.01255.x

Cao, F., Peng, S. (Stella), & Ye, K. (2019). Multiple Large Shareholders and Corporate Social Responsibility Reporting. Emerging Markets Review, 38, 287–309. https://doi.org/10.1016/j.ememar.2019.02.004

Edison, A. (2017). Struktur Kepemilikan Asing, Kepemilikan Institusional Dan Kepemilikan Manajerial Pengaruhnya Terhadap Luas Pengungkapan Corporate Social Responsibility (Csr). Bisma: Jurnal Bisnis dan Manajemen, 11(2), 164-175. https://doi.org/10.19184/bisma.v11i2.6311

Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22(4), 325–345. https://doi.org/10.1016/S0278-4254(03)00037-1

Gujarati, N. D & Porter, D. C. 2013. Dasar-dasar Ekonometrika. Buku 1 dan Buku 2 Edisi 5. Penerjemah: Raden Carlus Mangunsong. Jakarta: Salemba Empat

Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of accounting and economics, 31(1-3), 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0

Hosny, H. E., Ibrahim, A. H., & Eldars, E. A. (2021). Development of infrastructure projects sustainability assessment model. Environment, Development and Sustainability 24(6), 7493-7531. https://doi.org/10.1007/s10668-021-01791-5

Huafang, X., & Jianguo, Y. (2007). Ownership Structure, Board Composition and Corporate Voluntary Disclosure: Evidence from Listed Companies in China. Managerial Auditing Journal, 22(6), 604–619. https://doi.org/10.1108/02686900710759406

Ikatan Akuntansi Indonesia. (2009). PSAK 15. https://web.iaiglobal.or.id/PSAK-Umum/17

Jensen, M., & Meckling, W. (1976). Theory of the firm: managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1017/CBO9780511817410.023

Jeong, J., & Piao, W. (2019). The Effect of Multiple Large Shareholders on the Firm’s Value in China. Advances in Economics, Business and Management Research, 106(Feb), 15–20. https://doi.org/10.2991/febm-19.2019.4

Jiang, F., Kim, K. A., Nofsinger, J. R., & Zhu, B. (2017). A pecking order of shareholder structure. Journal of Corporate Finance, 44, 1-14. https://doi.org/10.1016/j.jcorpfin.2017.03.002

Jong, H. N. (2021, March 10). Mining sites in Indonesia’s disaster-prone areas a ticking time bomb: Report. Mongabay. https://news.mongabay.com/2021/03/mining-sites-indonesia-disaster-prone-area-report/

Karima, N. (2014). pengaruh Kepemilikan Manajerial, kepemilikan Institusional, dan Kepemilikan Asing terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan. Widya Warta, 2(2), 219–230.

Khan, A., Muttakin, M. B., & Siddiqui, J. (2012). Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy Corporate Governance and Corporate Social Responsibility Disclosures : Evidence from an Emerging Economy. https://doi.org/10.2139/ssrn.2050630

Liu, A. M., Irwansyah, & Fakhroni, Z. (2016). Peran Agency Cost Reduction Dalam Memediasi Hubungan Antara Corporate Social Responsibility dengan Nilai Perusahaan. Jurnal Ekonomi, Manajemen, Dan Akuntansi, 18(2), 141–156. https://doi.org/10.30872/jfor.v18i2.865

Sintyawati, N. L. A., & Dewi, M. R. (2018). Pengaruh kepemilikan manajerial, kepemilikan institusional dan leverage terhadap biaya keagenan pada perusahaan manufaktur. E-Jurnal Manajemen Universitas Udayana, 7(2), 933-1020. https://doi.org/10.24843/EJMUNUD.2018.v7.i02.p16

Mahoney, L., & Roberts, R. W. (2007). Corporate social performance, financial performance and institutional ownership in Canadian firms. 31, 233–235. https://doi.org/10.1016/j.accfor.2007.05.001

NCSR. (2020, December 16). NCSR ASRRAT 2020. NCCR. https://nccr.id/articles/ncsr-asrrat-2020/

Nugroho, M. N., & Yulianto, A. (2015). Pengaruh Profitabilitas dan Mekanisme Corporate Governance Terhadap Pengungkapan CSR Perusahaan Terdaftar di JII 2011-2013. Accounting Analysis Journal, 4(1). https://doi.org/10.15294/aaj.v4i1.7829

Nurleni, N., Bandang, A., Darmawati, & Amiruddin. (2018). The Effect of Managerial And Institutional Ownership On Corporate Social Responsibility Disclosure. International Journal of Law and Management, 60(4), 979–987. https://doi.org/10.1108/IJLMA-03-2017-0078

Oh, W. Y., Chang, Y. K., & Martynov, A. (2011). The effect of ownership structure on corporate social responsibility: Empirical evidence from Korea. Journal of business ethics, 104, 283-297. https://doi.org/10.1007/s10551-011-0912-z

Paek, S., Xiao, Q., Lee, S., & Song, H. (2013). International Journal of Hospitality Management Does Managerial Ownership Affect Different Corporate Social Responsibility Dimensions? An Empirical Examination of U. S. Publicly Traded Hospitality Firms. International Journal of Hospitality Management, 34, 423–433. https://doi.org/10.1016/j.ijhm.2012.12.004

Paramita, A. D., & Marsono. (2014). Pengaruh Karakteristik Corporate Governance Terhadap Luas Pengungkapan Corporate Social Responsibility. Diponegoro Journal of Accounting, 3(1), 1–15.

Pasaribu, M. Y., Topowijono, & Sulasmiyati, S. (2016). Pengaruh struktur modal, struktur kepemilikan dan profitabilitas terhadap nilai perusahaan pada perusahaan sektor industri dasar dan kimia yang terdaftar di BEI tahun 2011-2014. Jurnal Administrasi Bisnis (JAB), 35(1), 154-164.

Puspitaningsih, R. W., & Pohan, H. T. (2016). Pengaruh Struktur Kepemilikan, Profitabilitas, Ukuran Perusahaan, dan Umur Perusahaan Terhadap Pengungkapan Corporate Social Responsibility (Studi Empiris pada Perusahaan Manufaktur Yang Tercatat di Bursa Efek Indonesia Tahun 2014). Jurnal Magister Akuntansi Trisakti, 3(1), 95-120. https://doi.org/10.25105/jmat.v3i1.4966

Qa’dan, M. B. A., & Suwaidan, M. S. (2018). Board composition, ownership structure and corporate social responsibility disclosure: the case of Jordan. Social Responsibility Journal, 15(1), 28-46. https://doi.org/10.1108/SRJ-11-2017-0225

Rivandi, M. (2020). Pengaruh struktur kepemilikan terhadap pengungkapan corporate social responsibility pada perusahaan high profile di BEI. Akuntabilitas: Jurnal Ilmu Akuntansi, 13(2), 205-220. https://doi.org/10.15408/akt.v13i2.17336

Said, R., Zainuddin, Y., & Haron, H. (2009). The relationship between corporate social responsibility disclosure and corporate governance characteristics in Malaysian public listed companies. Social Responsibility Journal, 5(2), 212–226. https://doi.org/10.1108/17471110910964496

Salehi, M., Tarighi, H., & Rezanezhad, M. (2017). The relationship between board of directors’ structure and company ownership with corporate social responsibility disclosure: Iranian angle. Humanomics, 33(4), 398-418. https://doi.org/10.1108/H-02-2017-0022

Singal, P. A., & Putra, I. N. W. A. (2019). Pengaruh kepemilikan institusional, kepemilikan manajerial, dan kepemilikan asing pada pengungkapan corporate social responsibility. E-Jurnal Akuntansi, 29(1), 468-484. https://doi.org/10.24843/eja.2019.v29.i01.p30

Singhania, M., & Gandhi, G. (2015). Social and environmental disclosure index: Perspectives from Indian corporate sector. Journal of Advances in Management Research, 12(2), 192-208. https://doi.org/10.1108/JAMR-12-2013-0069

Sutedja, S. (2006). Pengungkapan (Disclosure) Laporan Keuangan Sebagai Upaya Mengatasi Asimetri Informasi. Infestasi, 2(2), 113-125. https://doi.org/10.21107/infestasi.v2i2.1196

Wang, X. X., Pan, H. Y., & Xue, K. K. (2021). Can multiple large shareholders promote corporate social responsibility?. Chinese Management Studies, 15(1), 99-116. https://doi.org/10.1108/CMS-08-2019-0304

Wei, F., & Zhou, L. (2020). Multiple large shareholders and corporate environmental protection investment: Evidence from the Chinese listed companies. China Journal of Accounting Research, 13(4), 387-404. https://doi.org/10.1016/j.cjar.2020.09.001

Yasa, A. (2020, February 19). Pembebasan Lahan Jadi Kendala Utama Proyek Strategis Nasional. Bisnis.com. https://ekonomi.bisnis.com/read/20200219/45/1203014/pembebasan-lahan-jadi-kendala-utama-proyek-strategis-nasional




DOI: https://doi.org/10.18196/jai.v24i3.18740

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Office:
Ruang Jurnal Fakultas Ekonomi dan Bisnis UMY
Gedung Ki Bagus Hadikusuma (E4) Lantai 2, Kampus Terpadu Universitas Muhammadiyah Yogyakarta,
Jalan Brawijaya (Lingkar Selatan), Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia, 55183
Website: journal.umy.ac.id/index.php/ai - E-mail: jai@umy.ac.id

Journal of Accounting and Investment is licensed under Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License

View My Stats