Corporate Social Responsibility disclosure and Indonesian firm value: The moderating effect of profitability and firm’s size

Handayati, Puji; Sumarsono, Hadi; Narmaditya, Bagus Shandy

doi:10.15549/jeecar.v9i4.940

Cited by 15 publications

(13 citation statements)

References 54 publications

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“…In this regard, Sierra et al (2015) find that the decision to disclose CSR reports depends on whether financial statements are audited by one of the big auditing firms or not. Lim and Phillips (2008) and Handayati et al (2022) report a positive relationship between big four auditing firms and the voluntary disclosure of CSR information by Malaysian companies. Pucheta- Martínez et al (2018) show that the big four auditing firms and the audit and non-audit fees paid by audited firms encourage CSR reporting in Spanish context.…”

Section: Corporate Governance and Sustainability Reportingmentioning

confidence: 98%

Firms’ characteristics, corporate governance, and the adoption of sustainability reporting: evidence from Gulf Cooperation Council countries

Al-Qudah¹,

Houcine

2023

JFRA

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Purpose The purpose of the study is to investigate the factors that influence the adoption of new sustainability reporting (SDG) and external assurance (EXTA) practices. This study also examines the relationship between sustainability reporting activity and corporate economic performance for a sample of 99 companies in Gulf Cooperation Council (GCC) countries that addressed SDGs in their sustainability reports published in 2019. Design/methodology/approach Using a two-stage analysis, this study examines how firms’ characteristics and corporate governance variables affect SDG and economic performance, as well as the firm’s decision to adopt EXTA statements for a sample of companies in that addressed SDGs in their sustainability reports published in 2019. The authors collected data from the Global Reporting Initiative’s (GRI) Sustainability Disclosure database and the Bureau van Dijk for Orbis database. Findings The results show that the variables firm size, profitability, big 4 auditors and government ownership significantly affect SDG and economic performance. The results also reveal that firms operating in the manufacturing sector are positively correlated with SDG and the firm’s decision to adopt EXTA statements. Furthermore, the results indicate that board independence positively affects SDGs and EXTA. Research limitations/implications The results can be particularly relevant and timely in helping large GCC companies promote their engagement to sustainable development practices by adopting more sustainable long-term strategies and policies. The findings could also guide managers in the strategic direction to identify firms’ characteristics and corporate governance features essential to promote sustainability reporting, an increasingly important performance indicator for investors and to enhance their confidence in the capital market. The results may also have practical implications to policymakers and other regulators in GCC countries to define effective frameworks that promote sustainable development reports and the use of EXTA. Originality/value The results make significant contributions by providing new insights to the existing literature on sustainability reporting in emerging markets by examining a unique perspective on the influence of firms’ characteristics and corporate governance features on the adoption of new sustainability reporting practices. The authors further add to the previous literature on the relationship between a firm’s economic performance and sustainable reporting by providing evidence from large companies in GCC countries, which might benefit from the adoption of multiple conceptual lenses, in this case, legitimacy and stakeholder theories. Lastly, through the empirical findings, this study provides economic validity to the 2018 joint initiative of the GRI and the United Nations Global Compact to strengthen corporate actions to achieve the United Nations SDGs.

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Section: Corporate Governance and Sustainability Reportingmentioning

confidence: 98%

Firms’ characteristics, corporate governance, and the adoption of sustainability reporting: evidence from Gulf Cooperation Council countries

Al-Qudah¹,

Houcine

2023

JFRA

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“…Hypothesis Development. CSR disclosure is an effort to provide information about corporate social responsibility activities to the community and the surrounding environment by including it in the annual or company sustainability report (Handayati et al, 2022). There needs to be more than the company's financial condition to guarantee the growth of the company's value.…”

Section: Theoretical Reviewmentioning

confidence: 99%

“…In recent years, companies have introduced corporate social responsibility (CSR) disclosures as a medium to increase company value (Handayati et al, 2022). CSR disclosure is an effort used by companies to provide information on corporate social responsibility activities to the public and other parties who use company financial reports (Chen et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Determinants Of Company Value In Energy Sector Companies

Willy Sri Yuliandhari,

Rishma Nadya Nurramadhani

2024

Jurnal Akuntansi

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Company value is the number of sales obtained through an assessment of the company's ability, which reflects public trust in the company. Company value can be influenced by CSR disclosure, intellectual capital, and capital structure. This study examines the effect of CSR disclosure, intellectual capital, and capital structure on company value in energy sector companies listed on the IDX for 2017 to 2022. The research sample was determined using a purposive sampling technique so that 9 sample companies were obtained. The data used are annual and sustainability reports during the study period. This study uses panel data regression analysis with Eviews 12 software. This study's results indicate that CSR disclosure, intellectual capital, and capital structure simultaneously influence company value. Partially, CSR disclosure and intellectual capital do not affect company value, while capital structure has a negative effect on company value.

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“…This ethical perspective might induce companies to protect stakeholders' interests by supporting audit quality [52,53]. In this regard, focusing on Indonesia, Handayati et al found that firms audited by Big4 auditors are positively related to CSR disclosure [54]. Focusing on the French context, Dakhli found that the positive implications of corporate social responsibility are more obvious in firms audited by Big4 auditors [55].…”

Section: Corporate Social Responsibility (Csr) and Auditor Choicementioning

confidence: 99%

ESG Performance, Auditor Choice, and Audit Opinion: Evidence from an Emerging Market

Diab,

Eissa

2023

Sustainability

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This study examines the effect of environmental, social, and governance (ESG) performance on auditor choice and audit opinion for Egyptian-listed firms. We use univariate and multivariate analyses of 612 firm-year observations for a sample of 68 firms listed on EGX100 over 2014–2022 using binary logistic regression models. Consistent with the ethical perspective of corporate social responsibility, we found that firms listed in the ESG index are more likely to assign one of the Big4 auditors, and less likely to receive a qualified opinion. Through an additional analysis, we found that COVID-19 moderates the relationship between ESG performance, auditor choice, and audit opinion. Our results confirm the value of ESG performance for audit practices in emerging economies. This research indicates that ESG performance can enhance financial reporting quality. Further, it ensures that binding guidelines and regulations are crucial to oversee corporate ESG performance, especially during crisis times, and enhance investors’ protection and firms’ sustainability.

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Corporate Social Responsibility disclosure and Indonesian firm value: The moderating effect of profitability and firm’s size

Cited by 15 publications

References 54 publications

Firms’ characteristics, corporate governance, and the adoption of sustainability reporting: evidence from Gulf Cooperation Council countries

Firms’ characteristics, corporate governance, and the adoption of sustainability reporting: evidence from Gulf Cooperation Council countries

Determinants Of Company Value In Energy Sector Companies

ESG Performance, Auditor Choice, and Audit Opinion: Evidence from an Emerging Market

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