Determinants of Social Responsibility Report Disclosure with Company Size As a Moderating Variable
DOI:
10.47353/ecbis.v4i6.581Published:
2026-09-24Downloads
Abstract
This study examines the effects of reporting guidelines, audit assurance, political connections, and government ownership on the quality of CSR disclosures, while controlling for firm size as a moderating variable. The final sample comprised 35 energy companies listed on the Indonesia Stock Exchange between 2021 and 2024, resulting in 140 firm-year observations. The data were analyzed using multiple regression and Moderated Regression Analysis (MRA). The results demonstrate that reporting guidelines, audit opinions, political connections, and government ownership each have a positive effect on CSR disclosure quality. Firm size, measured by the natural logarithm of total assets, does not moderate the relationship between reporting guidelines and disclosure quality, but it does strengthen the effects of audit assurance, political connections, and government ownership. These findings underscore the importance of governance mechanisms, firm characteristics, and ownership structures in improving CSR disclosure quality, with firm size selectively amplifying specific Influences.
Keywords:
CSR Disclosure Firm Size Government Ownership Political Connections Reporting GuidelinesReferences
Abdullah, SN, Mohamad, NR, & Mokhtar, MZ 2011. Board independence, ownership and CSR of Malaysian large firms. Corporate Ownership and Control, 8(2), 467–483.
Anita, R. 2018. Analysis of the influence of ownership structure and company characteristics on Corporate Social Responsibility disclosure. Global Financial Accounting Journal, 2(1), 1–12.
Anugerah, EG, Saraswati, E., & Andayani, W.2018. Quality of disclosure and corporate social responsibility reporting practices in Indonesia. Journal of Accounting, 22(03), 337-353.
Arum, RN, & Amalia, D. 2022. CSR Disclosure Quality: The Impact of Stand-alone Reports, Assurances, Reporting Guidelines, and Stakeholders. Jurnal REKSA: Rekayasa Keuangan, Syariah dan Audit, 9(2), 91-99.
Aviyanti, RD, Devi, HP, Amah, N., Andriani, DN, & Widiastuti, PW 2022. The Influence of Governance, Political Connections, and Board of Directors Compensation on Social Responsibility Disclosure. INVENTORY: ACCOUNTING JOURNAL, 6(2).
Bouten, L., Everaert, P., Van Liedekerke, L., De Moor, L., & Christiaens, J. 2011. Corporate social responsibility reporting: A comprehensive picture?. Accounting Forum, 35(3), 187–204.
Brigham, EF, Gapenski, LC, & Ehrhardt, MC 1997. Financial management: Theory and practice (8th ed.). Dryden Press.
Bronn, PS, & Vidaver-Cohen, D. 2009. Corporate Motives for Social Initiatives: Legitimacy, Sustainability, or the Bottom Line?. Journal of Business Ethics, 87(1), 91–109.
Calderon, R.T., Gurtu, A., & Holly, M.A. 2023. Exploring transparency–sustainability linkage: Analysis of CSR disclosures. Global Business Review. https://doi.org/10.1177/09721509231220298
DeAngelo, LE 1981. Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199.
Edgley, CR, MJ Jones, & JF Solomon. 2010. Stakeholder Inclusivity in Social and Environmental Assurance Reports. Journal of Accounting, Auditing & Accountability, 23 (4), 532-5
Fernandez-Feijoo, B., S. Romero, & S.
Eng, LL, & Mak, YT 2003. Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22(4), 325–345.
Farook, S., Hassan, MK, & Lanis, R. 2011. Determinants of Corporate Social Responsibility Disclosure: The Case of Islamic Banks. Journal of Islamic Accounting and Business Research, 2(2), 114–141.
Francis, J.R. (2004). What do we know about audit quality? The British Accounting Review, 36(4), 345–368.
Fu, J., Shimamoto, D., & Todo, Y. 2017. Can firms with political connections borrow more than those without? Evidence from firm-level data for Indonesia. Journal of Asian Economics, 52.
Gamerschlag, R., Möller, K., & Verbeeten, F. 2011. Determinants of voluntary CSR disclosure: Empirical evidence from Germany. Review of Managerial Science, 5(2–3), 233–262.
Garanina, T. 2024. CSR disclosure and state ownership: Implications for earnings management and market value. Journal of Accounting in Emerging Economies, 14(3), 513–547.
Garanina, T., & Kim, O. 2023 . The relationship between CSR disclosure and accounting conservatism: The role of state ownership. Journal of International Accounting, Auditing and Taxation, 50,100522.
Global Reporting Initiative. 2021. GRI standards. Global Reporting Initiative.
Guthrie, J. & L.D. Parker. 1990. Corporate Social Disclosure Practice: A Comparative International Analysis. Advances in Public Interest Accounting, 3, 159-175.
Habek, P. 2017. CSR reporting practices in the Visegrad Group Countries and Disclosure Quality. Sustainability (Switzerland),9 (12), 2322.
Hung, CHD, Jiang, Y., Liu, F.H., Tu, H., & Wang, S. 2017. Bank political connections and performance in China. Journal of Financial Stability, 32.
Husaini, & Trinesia, D. 2020. Determinants of corporate social responsibility disclosure in Indonesia. Journal of Accounting, 10(2), 1–14.
International Organization for Standardization. 2010. ISO 26000: Guidance on social responsibility. ISO.
Juniarti, J. 2020. Does mandatory CSR provide long-term benefits to shareholders? Social Responsibility Journal, 17(6), 776-794.
Khairin, MY, & Firmansyah, A. 2024. Political connection, public ownership, CSR disclosure: The moderating role of company size, Owner: Research & Accounting Journal, 8(4).
Khan, A., Muttakin, M.B., & Siddiqui, J .2013. Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114(2), 207–223.
Kuo, L., Yeh, C., & Yu, H. 2012. Disclosure of Corporate Social Responsibility and Environmental Management: Evidence from China. Corporate Social Responsibility and Environmental Management, 19(5), 273–287. https://doi.org/10.1002/csr.274
Li, J., & Sasaki, M. 2024. Political embeddedness and corporate social responsibility (CSR) in a state-led developing country: Evidence from China. Asian Business & Management, 23, 597–621.
Li, X., Luo, Y., & Zhang, L. 2023 . Corporate Social Responsibility and Environmental Management.
Li, Y., Miao, X., Zheng, D., & Tang, Y. 2019. Corporate public transparency on financial performance: The moderating role of political embeddedness. Sustainability (Switzerland), 11(19).
Mardianti, IV, & Ardini, L. 2020. The effect of corporate social responsibility, profitability, foreign ownership, and capital intensity on tax avoidance. Journal of Accounting Science and Research (JIRA), 9(10).
Martínez-Ferrero, J., & García-Sánchez, I.M. (2017). Sustainability assurance and cost of capital: Does assurance impact credibility? Business Strategy and the Environment, 26(2), 223–239.
Merawati, LK, Yuliastuti, IAN, & Pradnyana, IMA 2022. CSR disclosure in state-owned enterprises in Indonesia: Does public share ownership could effect?. RATIO: Review of Contemporary Indonesian Accounting, 3(2), 92-101.
Michelon, G., S. Pilonato, and F. Ricceri. 2015. CSR Reporting Practices and the Quality of Disclosure: An Empirical Analysis. Critical Perspectives on Accounting, 33, 59-78.
Muliawati, AR, & Hariyati, H. 2021. The Influence of Political Connections and Media Exposure on Social Responsibility Disclosure. Journal of Accounting and Economics, 11(1).
Muttakin, MB, & Subramaniam, N. 2015. Firm ownership and board characteristics: Do they matter for corporate social responsibility disclosure of Indian companies? Sustainability Accounting, Management and Policy Journal, 6(2), 138–165. https://doi.org/10.1108/SAMPJ-10-2013-0042
Nasution, Ryan Muhammad & Adhariani, Desi. 2016. Symbolic or Substantive? Analysis of CSR Reporting Practices and Disclosure Quality. Indonesian Journal of Accounting and Finance, 13(1), 23-51.
Nguyen, T.H., & Tran, P.Q. (2024). Firm size and sustainability reporting quality: Evidence from Asian emerging markets. Journal of Cleaner Production, 428, 139456. https://doi.org/10.1016/j.jclepro.2023.139456
Nugraheni, P., Indrasari, A., & Hamzah, N. 2022. The impact of ownership structure on CSR disclosure: Evidence from Indonesia. Journal of Accounting and Investment, 23(2), 229–243.
Nugroho, MN, & Yulianto, A. 2015. The influence of profitability and corporate governance mechanisms on CSR disclosure of JII listed companies 2011–2013. Accounting Analysis Journal, 4(1).
Nurleni, N., Bandang, A., Darmawati, D., & Amiruddin, A. 2018. The effect of managerial and institutional ownership on corporate social responsibility disclosure. International Journal of Law and Management, 60(4), 979–987.
Oh, WY, Chang, YK, & Martynov, A. 2011. The Effect of Ownership Structure on Corporate Social Responsibility: Empirical Evidence from Korea. Journal of Business Ethics, 104(2), 283–297.
Financial Services Authority. 2017. Financial Services Authority Regulation Number 51/POJK.03/2017 concerning the implementation of sustainable finance for financial services institutions, issuers, and public companies. OJK.
Pratama, I., Pratama, K., Atrizka, D., & Dalimunthe, MI 2024. The attributes of corporate governance to the quality of corporate social responsibility disclosure. AFRE Accounting and Financial Review, 7(2), 117-130.
Ratmono, D., Nugrahini, P., & Cahyonowati, N. 2019. The effect of corporate governance on corporate social responsibility disclosure and performance. Journal of Accounting and Investment, 20(1), 1–15.
Reimsbach, D., Braam, G., & Wang, Z. 2018. Political embeddedness and the diffusion of corporate social responsibility practices in China: A trade-off between financial and CSR performance?. Journal of Cleaner Production, 198.
Republic of Indonesia. 2007. Law Number 40 of 2007 concerning Limited Liability Companies. State Gazette of the Republic of Indonesia 2007 Number 106.
Reverte, C. 2009. Determinants of corporate social responsibility disclosure ratings by Spanish listed firms. Journal of Business Ethics, 88(2), 351–366.
Rudyanto, A., & Siregar, SV 2018. The effect of stakeholder pressure and corporate governance on the sustainability report quality. International Journal of Ethics and Systems, 34(2), 233–249.
Shahid, MS, Nawaz, S., & Ali, L. 2018. Does Ownership Structure Influence Financial Decisions: Evidence from Pakistan. NUML International Journal of Business & Management, 13(2), 2410–5392.
Simnett, R., Vanstraelen, A., & Chua, W.F. (2009). Assurance on sustainability reports: An international comparison. The Accounting Review, 84(3), 937–967.
Sucahyati, D., Harymawan, I., & Nasih, M. 2022. Corporate Social Responsibility (CSR) Disclosure on Politically Connected-Family Firms. Journal of Accounting and Investment, 23(2), 281–309.
Suchman, MC 1995. Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571-610.
Sulistyowati, N., & Prabowo, TJW 2020. The Influence of Political Connections on Environmental Performance and Profitability. Diponegoro Journal of Accounting, 9(53).
Surono, & Mayangsari, S. 2022. The Influence of Political Connections, Family Ownership, and Company Size on Corporate Social Responsibility Disclosure. Trisakti Accounting Journal, 9(1), 1–26
Swandari, F., & Sadikin, A. 2016. The Effect of Ownership Structure, Profitability, Leverage, and Firm Size on Corporate Social Responsibility (CSR). Binus Business Review, 7(3), 315–320.
Sylvia, Rustan, DM, & Idris, M. 2022. Moderation of firm size: Financial performance on disclosure of corporate social responsibility. Atestasi: Jurnal Ilmiah Akuntansi, 5(1), 296–320.
Tessema, A. 2019. The impact of corporate governance and political connections on information asymmetry: International evidence from banks in the Gulf Cooperation Council member countries. Journal of International Accounting, Auditing and Taxation, 35.
Tista, KWN, Rahman, AF, & Prastiwi, A. 2021. The Implications of Organizational Slack-Resources Heterogeneity toward CSR Expenditures. Journal of Accounting and Investment, 22(2), 361–374.
Waluyo, W. 2017. Firm size, firm age, and firm growth on corporate social responsibility in Indonesia: The case of real estate companies. European Research Studies Journal, 20(4).
Wang, D., Ma, G., Song, X., & Liu, Y. 2016. Political connections and business transformation in family firms: Evidence from China. Journal of Family Business Strategy, 7(2).
Wati, LN, Ramdany, & Momon. 2020. Does corporate governance financial affect reporting quality of politically connected firms? . Entrepreneurship and Sustainability Issues, 7(3).
Wu, W., Wu, C., Zhou, C., & Wu, J. 2012. Political connections, tax benefits and firm performance: Evidence from China. Journal of Accounting and Public Policy, 31(3).
License
Copyright (c) 2026 Nur Saban, Lilis Ardini
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Downloads
How to Cite
