The Effect of CSR Disclosure On Firm Risk In Mining Companies Listed On IDX

Thanaya, Sayu Aryantini; Widanaputra, Anak Agung Gde Putu

doi:10.24843/eja.2019.v29.i02.p07

Cited by 4 publications

(19 citation statements)

References 17 publications

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“…Cheng and Christiawan (2011) stated that the disclosure of corporate activities related to CSR can send a positive signal to the market and company stakeholders regarding the prospects for the company's future sustainability. The results of this study are supported by research conducted by Sun, Salama, Hussainey andHabbash (2010), Jo, Kim andPark, (2016), , Haryono and Rusdiah (2015) and Thanaya and Widanaputra (2019); the last research gives the same results where CSR disclosure has a significant effect on firm risk (SD) in mining companies on the Indonesia Stock Exchange. The results of this study are not in line with the research conducted by Tumurin and Kusuma (2003), where CSR disclosure by companies does not affect market risk.…”

Section: Discussionsupporting

confidence: 81%

“…Previous research on market performance represented by aspects of market risk (SD) was conducted by Sjafrudin Redjab et al (2014) the results of the study showed that market reactions were not related to earnings management. Research by Haryono and Rusdiah (2015), Thanaya and Widanaputra (2019), these two researchers gave the same results where CSR disclosure has a significant effect on firm risk (SD) in the mining company, this research had different company with Sjafrudin Redjab et al (2014). Previous research on market performance proxied by the aspect of market value (MVE) was carried out by Suhardjanto, Nugraheni, and Accounting (2012), the results of the study showed that CSR disclosure had a positive effect on MVE, this result was supported by research conducted by Husser and Evraert-Bardinet (2015) and Reverte (2016), Corporate social responsibility disclosure and market valuation: evidence from Spanish listed firms.…”

Section: Previous Studiesmentioning

confidence: 99%

“…Cheng andChristiawan (2011), Miller andWikstrom (2016), Ender and Brinckmann (2019), investors tend to react positively to disclosures related to society and the environment. Haryono and Rusdiah (2015), Thanaya and Widanaputra (2019) state that CSR disclosure has a significant effect on corporate risk (SD) in the mining sector.…”

Section: Introductionmentioning

confidence: 99%

“…This research also adds to the observation period of the cumulative abnormal value of the 30-day span to calculate the abnormal return value, with the object of research being manufacturing companies. Manufacturing companies were chosen because researchers also wanted to see whether income smoothing had an effect on market performance as calculated by SD in manufacturing sector companies where previous studies of Haryono and Rusdiah (2015) Thanaya and Widanaputra (2019) stated that CSR disclosure has a significant effect on market risk (SD) in the mining sector.…”

Section: Introductionmentioning

confidence: 99%

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2021

IJBESAR

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Based on signal theory and legitimacy theory, this paper examines whether firms with financial reporting misstatements (restatements) would prefer conservative financial reporting to send signals regarding their determinants of improving financial reporting credibility and legitimate organizational image in Taiwan. This paper further examines whether these firms reduce the demand for conservative financial reporting after replacing managers in the reveal of restatements. Design/methodology/approach: This paper adopts the ordinary least squares (OLS) regression models to estimate the hypotheses and uses different measures of earnings conservatism, such as the Basu's (1997) asymmetric timeliness of earnings measure based on a one-year period and the Basu's (1997) asymmetric timeliness of earnings measure based on a multi-year period. Finding:The results show that financial reporting behavior of restating firms would become more conservative in the reveal of restatements. However, when restating firms make replacement decisions for managers following restatements, they would demand less conservative financial reporting. This suggests that earnings conservatism and corporate governance may be substitutes in the context of restatements in Taiwan. Research limitations/implications:The findings have essential implications for Taiwanese security regulators and those who are debating the value of earnings conservatism for capital markets. When Taiwanese security regulators make regulations in relation to corporate governance and financial reporting, they must consider how to encourage firms to strengthen corporate governance and financial reporting credibility. Furthermore, to some extent, the findings of this paper support the efforts made by security regulators to enhance manager turnover disclosure transparency. Originality/value: By extending and advancing past research on restatements and earnings conservatism, this paper contributes to support that restating firms would enhance earnings conservatism following restatements in Taiwan. Moreover, this paper also contributes to support that earnings conservatism may be the substitute of governance mechanisms such as manager replacement in the context of restatements in Taiwan. Due to different institutional backgrounds and governance strength between Western countries and Asian countries, it's important to examine what post-restatement actions would be taken by Taiwanese firms and how they select optimal governance structure in the reveal of restatements. The findings of this paper facilitate to enhance the understanding of the relationship between restatements and earnings conservatism and how corporate governance affects the above relationship following restatements in Taiwan.

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Section: Discussionsupporting

confidence: 81%

Section: Previous Studiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Untitled

2021

IJBESAR

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“…Second, we find that CSR has recently received much attention in developing countries, but institutions and practices differ from country to country may make findings from one research in a country unfit for the generalization to others. Importantly, even though there are numerous studies on CSR in emerging markets, there is relatively limited research on the link between CSR disclosure and firm risk [21]. Third, CSR has now become a norm and can be seen as a link between business and social and economic growth in Vietnam.…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility Disclosure and Its Effect on Firm Risk: An Empirical Research on Vietnamese Firms

2021

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The purpose of the study was to gather empirical evidence on the influence of corporate social responsibility (CSR) disclosure on firm risk of Vietnam’s publicly listed companies. We used adjusted OLS estimation and regression analysis with adjusted panel data for heteroskedasticity and/or autocorrelation to analyze the correlation using data from 225 listed companies on Vietnam’s stock market from 2014 to 2019. The study’s sample period is relatively recent in the emerging market, especially considering regulatory differences and the availability of voluntary disclosure requirements. The findings of research on the relationship between CSR and corporate risk are mixed, particularly in developing markets. Research findings reveal a negative and significant association between CSR and firm risk, implying that stronger CSR performance lowers a company’s risk. This aims to strengthen a research perspective of this connection in emerging countries. Following that, we discuss some policy implications for listed firms and regulators in CSR disclosure.

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Determinants of Profitability of Indonesia Palm Oil Industry

Mutasowifin,

Dwitaningsih

2022

JIMKES

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Palm oil is one of Indonesia's leading sectors. Palm oil companies on the IDX experi-enced a decline in profitability from 2016-2019. Some even had negative profits. One indicator to assess the company's performance is to look at the level of profitability. This study aims to analyze the effect of leverage, activity, liquidity, and sales growth on the profitability of palm oil companies for the 2016-2020 period. The sampling method used is non-probability sampling with a purposive sampling technique. This study uses panel data regression analysis. The results showed that Debt to Asset Ratio, Total Asset Turnover, and Current Ratio had a negative effect on ROA, while Working Capital Turnover had no effect on ROA, and sales growth had a positive effect on ROA.

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The Effect of CSR Disclosure On Firm Risk In Mining Companies Listed On IDX

Cited by 4 publications

References 17 publications

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Untitled

Corporate Social Responsibility Disclosure and Its Effect on Firm Risk: An Empirical Research on Vietnamese Firms

Determinants of Profitability of Indonesia Palm Oil Industry

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