Pramesti Nyoman, Postgraduate Student of Economy Faculty, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0002-9061-8511
e-mail: nyomanpramesti@pusri.co.id

Wahyudi Tertiarto, Doctor of Economics, Lecturer of Economy Faculty, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0003-4056-5105
e-mail: tertiwahyudi@gmail.com

Azwardi, Doctor of Economics, Lecturer of Economy Faculty, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0003-0066-2445
e-mail: azwardi_unsri@yahoo.com

Corporate Social Responsibility Disclosure in 45 Liquid Companies

Abstract. Introduction. Company characteristics are divided into three groups. There are structured related variables (likes company size, leverage and type of stock ownership), performance related variables (like profitability, company type and company basis) and market related structured (like industry type). The company characteristics in this study consisted of company size, leverage, and profitability. The company size was measured by the Natural Logarithm from the total assets, leverage was assessed by Debt to Equity Ratio, profitability was evaluated by Earning Per Share, and corporate social responsibility disclosure was observed by the Global Reporting Initiative Generation 4 checklist. The obtained data were secondary data from the annual reports of 45 liquid companies listed on the Indonesia Stock Exchange in 2016-2018. The sampling method in this study was purposive sampling. Hypotheses testing in this study used multiple regression analysis in SPSS version 16.

Purpose. The purpose of this study was to provide empirical evidence about the influence of company size, leverage, and profitability on corporate social responsibility disclosure.

Results. The results showed that company size affected corporate social responsibility disclosure in Indonesia’s 45 liquid companies with Sig. 0.003 < 0.005. Leverage did not affect corporate social responsibility disclosure in 45 liquid companies with Sig. 0.104 ≥ 0.005. Profitability did not influence corporate social responsibility disclosure in 45 liquid companies with Sig. 0.399 ≥ 0.005. Concurrently, all independent variables affect 0.215 of the corporate social responsibility disclosure, while other factors controlled the rest 0.785.

Conclusions. The results showed that company size affected corporate social responsibility disclosure in Indonesia’s 45 liquid companies. Leverage and profitability did not affect corporate social responsibility disclosure in 45 liquid companies. Concurrently, all independent variables affect 0.215 of the corporate social responsibility disclosure.

Keywords: company size; leverage; profitability; corporate social responsibility disclosure; Global Reporting Initiative Generation 4.

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