PROFITABILITY, CORPORATE GOVERNANCE, AND FAMILY OWNERSHIP EFFECT ON CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE
DOI:
https://doi.org/10.22225/kr.16.2.2025.259-270Keywords:
profitability, corporate governance, family ownership, corporate social responsibilityAbstract
The aim of this research is to analyze the effect of profitability, corporate governance, and family ownership
on corporate social responsibility disclosure. This research was conducted on manufacturing sector
companies listed on the Indonesia Stock Exchange with the observation year 2021 - 2023. The sample for this
research is family companies (Family Business Enterprise) which are included in the manufacturing industry
group. The sampling method used was the purposive sampling method. This research uses secondary data
obtained from the official website of the Indonesia Stock Exchange, namely www.idx.co.id and the company's
official website. The data collection method used in this research is the non-participant observation method.
The data analysis technique used is multiple linear regression analysis. The findings show that profitability,
corporate governance, and family ownership have a positive effect on corporate social responsibility
disclosure.
References
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Chen, F., Ho pe, OK, Li, Q., and Wang, X. (2011). Financial Reporting Quality and Investment Efficiency of Private Firms in Emerging Markets. Accounting Review, 86(4) , 1255–1288.
Chen, Naiwei, Sung, Hao-Chang and Yang, Jingjing. (2017). Ownership Structure, Corporate Governance and Investment Efficiency of Chinese Listed Firms. Pacific Accounting Review, 29(3) , 266-282.
Cheung, Yan-Leung, Jiang, Ping, and Tan, Weiqiang. (2010). A Transparency Disclosure Index Measuring Disclosures: Chinese Listed Companies. J. Account Public Policy, 29, 259-280.
Chiang, Hsiangtsai, He, Li Jen, and Shiao, Cang Fu. (2015). Financial Reports Quality and Corporate Social Responsibility. Asian Economic and Financial Review, 5(3), 453-467.
Claessenss, S., Djankov, S., and Lang, L. (2000). The Separation of Ownership and Control in East Asian Corporations. Journal of Financial Economics, 58, 81-112.
Cook, Kirsten A, Andrea M Romi, Daniela Sanchez, & Juan Manual Sanchez. (2018). The Influence of Corporate Social Responsibility on Investment Efficiency and Innovation. Texas Tech University, USA.
Dewi, Putu Sri Mei Yanti and Wirama, Dewa Gede. (2017). Pecking Order Theory: The Influence of Profitability and Company Growth on Company Financing Decisions. E-Journal of Accounting, Udayana University, 18(3) , 2423-2450.
Dewi, Ni Komang Sri Istri Okta and Sisdyani, Eka Ardhani. (2022). The Influence of Corporate Governance Mechanisms, Industry Type, and Public Ownership on Corporate Social Responsibility Disclosure. E-Journal of Accounting, Udayana University, 11(8) , 893-902.
Deephouse, David L and Jaskiewicz, Peter. (2013). Do Family Firms have better Reputations than Non-Family Firms? An Integration of Socioemotional Wealth and Social Identity Theories. Journal of management Studies, 50, 337-360.
Ersyafdi, Ilham Ramadhan and Irianti, Putri Widya Dwi. (2022). The Influence of Financial Factors, Corporate Governance, Tax Aggressiveness on Corporate Social Responsibility Disclosure. SAR (Soedirman Accounting Review): Journal of Accounting and Business, 57-72.
Ferrero, Jenniver Martinez, Sanchez, Isabel M. Garcia, and Ballesteros, Beatriz Cuadrado. (2013). Effect of Financial Reporting Quality on Sustainability Information Disclosure. Corporate Social Responsibility and Environmental Management Corp. Published online in Wiley Online Library.
Freeman, R. Edward and Dmytriyev, Sergiy. (2017). Corporate Social Responsibility and Stakeholder Theory: Learning from Each Other. Symphonya Emerging Issues in Management, 1 , 7-15.
Garas, Samy and ElMassah, Suzanna. (2018). Corporate Governance and Corporate Social Responsibility Disclosures: The Case of GCC Countries. Critical Perspectives on International Business https://doi.org/10.1108/cpoib-10-2016-0042
Gomariz, FC and Ballesta, JPS (2014). Financial Reporting Quality, Debt Maturity and Investment Efficiency. Journal of Banking and Finance, 40, 494-506.
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Hanazaki, M., and Liu, Q. (2007). Corporate Governance and Investment in East Asian Firms Empirical Analysis of Family Controlled Firms. Journal of Asian Economics, 18, 76–97.
Jain, Bharat A and Shao, Yingying. (2014). Family Involvement and Post IPO Investment Policy. Family Business Review, 1-20.
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Lei, Qianhua and Chen, Huili. (2019). Corporate Governance Boundaries, Debt Constraints, and Investment Efficiency. Emerging Markets Finance and Trade, 55, 1091-1108.
Lu, Weisheng, Chau, KW, Wang, Hongdi and Pan, Wei. (2014). A Decade's Debate on The Nexus Between Corporate Social and Corporate Financial Performance: A Critical Review of Empirical Studies 2002-2011. Journal of Cleaner Production, 79, 195-206.
Lamb, Nai H. and Frank C. Butler. (2016). The Influence of Family Firms and Institutional Owners on Corporate Social Responsibility Performance. Business and Society, 1-33. DOI: 10.1177/0007650316648443
Lin, Chan Jan, Pan, Chao Jun and Wang, Tawei. (2015). Financial Reporting Quality and Investment Decisions for Family Firms. Asia Pacific Journal of Management. DOI: 10.1007/s10490-015-9438-8
Maharani, Ni Luh Ari and Sudana, I Putu. (2023). Profitability, Leverage, Management Ownership, and Corporate Social Responsibility Disclosure. E-Journal of Accounting, Faculty of Economics and Business, Udayana University, 33(11) , 3086-3103.
Marcello, M., Mariani, Khowlah Al ,- Sultan and Alfredo De Massis. (2023). Journal of Small Business Management. https://doi.org/10.1080/00472778.2021.1955122 21 92 ): 1192-1246
Mohammadi, Seyed Moosa. (2014). The Relationship between Financial Reporting Quality and Investment Efficiency in Tehran Stock Exchange. International Journal of Academic Research in Business and Social Sciences, 4(6) , 104-113.
Nasih, Mohammad, Nadia Anridho, Nadia Klarita Rahayu, John Nowland. (2023). CEO Masculinity and CSR disclosure: evidence from Indonesia. Asian Journal of Accounting Research, 8(2), 157-169.
Nor, NHM, Nawawi, A. and Salin, ASAP (2017). The Influence of Board Independence, Board Size and Managerial Ownership on Firm Investment Efficiency. Social Science and Humanities, 25(3), 1039-1058.
Prabowo, Ramadhan. (2022). Relationship and Implementation of the Influence of Leverage and Profitability on CSR of Automotive Industry Companies Listed on the IDX. Sintaksis: Scientific Journal of Education, 2(3), 37-44.
Pradhan, Radhe S., Shh, Mukesh Kumar, Bhandari, Nabin, Mahato, Prasad Nagendra, Adikari, Namaraj, and Bam, Nirajan. (2019). The Impact of Corporate Governance on Efficiency of Nepalese Commercial Banks. Business Governance and Society. https://doi.org/10.1007/978-3-319-94613-9_20
Now, Uma and Bougie, Roger. (2009). Research Method for Business A Skill Building Approach, First Edition. John Wiley and Sons, Inc.
Shahzad, Faisal, Rehman, Ijaz Ur, Nawaz Mir, Faisal, and Nawad, Noman. (2018). Does Family Control Explain Why Corporate Responsibility Affects Investment Efficiency? Corporate Social Responsibility and Environmental Management. DOI: 10.1002/csr.1504
Shahzad, Faisal, Rehman, Ijaz Ur, Colombage, Sisira, and Nawaz, Faisal. (2019). Financial Reporting Quality, Family Ownership, and Investment Efficiency: An Empirical Investigation. Managerial Finance. Doi.Org/10.1108/MF-02-2018-0081
Siregar, Farhan Habib, Syahyunan, and Zuwina Miraza. (2022). Financial Performance, Environmental Costs and Company Size on Financial Performance with Corporate Social Responsibility as an Intervening Variable. Journal of Economics, Management, Accounting, Digital Business and Entrepreneurship, 1(2), 187-205.
Sucahyati, Diarany., Iman Harymawan, and Mohamad Nasih. (2022). Corporate Social Responsibility (SCR) Disclosure on Politically Connected-Family Firms. Journal of Accounting and Investment, 23(2) , 281-309. DOI: 10.18196/jai.v23i2.14865
Sumertiasih, Ni Luh Putu Lia and Gerianta Wirawan Yasa. (2022). The Effect of Profit Growth, Profitability and Company Size on Earnings Quality. E-Journal of Accounting, 32(5), 1301-1316. DOI: 10.24843/EJA.2022.v32.i05.p14
Thasya, Noriko, Lisah, Gozal, Natasyah, Veronika , and Rahmi, Namira Ufrida. (2020). The Influence of Good Corporate Governance on Corporate Social Responsibility in Transportation Sub-Sector Companies. Journal of Ocean Economics and Business, 11 (1), 69-82.
Zhong, Ma and Lucia Gao . (2017). Does Corporate Social Responsibility Disclosure Improve Firm Investment Efficiency? Evidence from China. Review of Accounting and Finance. https://Doi.Org/10.1108/RAF-06-2016-0095
Aulia, Darlin and Veronica Siregar. (2018). Financial Reporting Quality, Debt Maturity and Chief Executive officer Career Concern on Investment Efficiency. Brazilian Administrative Review, 5(2) , 1-16.
Benlemlih, M and Bitar, M. (2018). Corporate Social Responsibility and Investment Efficiency. Journal of Business Ethics, 148, 647-671.
Berrone, P., Cruz, C., Gomez-Mejia, L.R., and Larraza-Kintana, M. (2010). Socioemotional Wealth and Corporate Responses to Institutional Pressures: Do Family Controlled Firms Pollute Less?. Administrative Science Quarterly, 5, 82-113.
Campopiano, Giovanna and De Massis, Alfredo. (2014). Corporate Social Responsibility Reporting: A Content Analysis in Family and Non-Family Firms. Journal of Business Ethics. DOI 10.1007/s10551-014-2174-z
Chen, F., Ho pe, OK, Li, Q., and Wang, X. (2011). Financial Reporting Quality and Investment Efficiency of Private Firms in Emerging Markets. Accounting Review, 86(4) , 1255–1288.
Chen, Naiwei, Sung, Hao-Chang and Yang, Jingjing. (2017). Ownership Structure, Corporate Governance and Investment Efficiency of Chinese Listed Firms. Pacific Accounting Review, 29(3) , 266-282.
Cheung, Yan-Leung, Jiang, Ping, and Tan, Weiqiang. (2010). A Transparency Disclosure Index Measuring Disclosures: Chinese Listed Companies. J. Account Public Policy, 29, 259-280.
Chiang, Hsiangtsai, He, Li Jen, and Shiao, Cang Fu. (2015). Financial Reports Quality and Corporate Social Responsibility. Asian Economic and Financial Review, 5(3), 453-467.
Claessenss, S., Djankov, S., and Lang, L. (2000). The Separation of Ownership and Control in East Asian Corporations. Journal of Financial Economics, 58, 81-112.
Cook, Kirsten A, Andrea M Romi, Daniela Sanchez, & Juan Manual Sanchez. (2018). The Influence of Corporate Social Responsibility on Investment Efficiency and Innovation. Texas Tech University, USA.
Dewi, Putu Sri Mei Yanti and Wirama, Dewa Gede. (2017). Pecking Order Theory: The Influence of Profitability and Company Growth on Company Financing Decisions. E-Journal of Accounting, Udayana University, 18(3) , 2423-2450.
Dewi, Ni Komang Sri Istri Okta and Sisdyani, Eka Ardhani. (2022). The Influence of Corporate Governance Mechanisms, Industry Type, and Public Ownership on Corporate Social Responsibility Disclosure. E-Journal of Accounting, Udayana University, 11(8) , 893-902.
Deephouse, David L and Jaskiewicz, Peter. (2013). Do Family Firms have better Reputations than Non-Family Firms? An Integration of Socioemotional Wealth and Social Identity Theories. Journal of management Studies, 50, 337-360.
Ersyafdi, Ilham Ramadhan and Irianti, Putri Widya Dwi. (2022). The Influence of Financial Factors, Corporate Governance, Tax Aggressiveness on Corporate Social Responsibility Disclosure. SAR (Soedirman Accounting Review): Journal of Accounting and Business, 57-72.
Ferrero, Jenniver Martinez, Sanchez, Isabel M. Garcia, and Ballesteros, Beatriz Cuadrado. (2013). Effect of Financial Reporting Quality on Sustainability Information Disclosure. Corporate Social Responsibility and Environmental Management Corp. Published online in Wiley Online Library.
Freeman, R. Edward and Dmytriyev, Sergiy. (2017). Corporate Social Responsibility and Stakeholder Theory: Learning from Each Other. Symphonya Emerging Issues in Management, 1 , 7-15.
Garas, Samy and ElMassah, Suzanna. (2018). Corporate Governance and Corporate Social Responsibility Disclosures: The Case of GCC Countries. Critical Perspectives on International Business https://doi.org/10.1108/cpoib-10-2016-0042
Gomariz, FC and Ballesta, JPS (2014). Financial Reporting Quality, Debt Maturity and Investment Efficiency. Journal of Banking and Finance, 40, 494-506.
Ghozali, I. (2018). Multivariate Analysis Application with IBM SPSS 25 Program (9th Edition) . Semarang: Diponegoro University.
Hanazaki, M., and Liu, Q. (2007). Corporate Governance and Investment in East Asian Firms Empirical Analysis of Family Controlled Firms. Journal of Asian Economics, 18, 76–97.
Jain, Bharat A and Shao, Yingying. (2014). Family Involvement and Post IPO Investment Policy. Family Business Review, 1-20.
Jin, Xin and Yu, Junli. (2017). Government Governance, Executive Networks and Corporate Investment Efficiency. China Finance Review International. https://Doi.Org/10.1108/CFRI-06-2016-0053
Khan, A., Muttakin, M. and Siddiqui, J. (2013). Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy. Journal of Business Ethics, 114(2) , 207-223.
Laili, Nur Isra and Apramilda, Riesna. (2023). Analysis of the Influence of Company Size, Leverage, and Profitability on Corporate Social Responsibility Disclosure. Realible Accounting Journal, 2(2) , 27-38.
Lei, Qianhua and Chen, Huili. (2019). Corporate Governance Boundaries, Debt Constraints, and Investment Efficiency. Emerging Markets Finance and Trade, 55, 1091-1108.
Lu, Weisheng, Chau, KW, Wang, Hongdi and Pan, Wei. (2014). A Decade's Debate on The Nexus Between Corporate Social and Corporate Financial Performance: A Critical Review of Empirical Studies 2002-2011. Journal of Cleaner Production, 79, 195-206.
Lamb, Nai H. and Frank C. Butler. (2016). The Influence of Family Firms and Institutional Owners on Corporate Social Responsibility Performance. Business and Society, 1-33. DOI: 10.1177/0007650316648443
Lin, Chan Jan, Pan, Chao Jun and Wang, Tawei. (2015). Financial Reporting Quality and Investment Decisions for Family Firms. Asia Pacific Journal of Management. DOI: 10.1007/s10490-015-9438-8
Maharani, Ni Luh Ari and Sudana, I Putu. (2023). Profitability, Leverage, Management Ownership, and Corporate Social Responsibility Disclosure. E-Journal of Accounting, Faculty of Economics and Business, Udayana University, 33(11) , 3086-3103.
Marcello, M., Mariani, Khowlah Al ,- Sultan and Alfredo De Massis. (2023). Journal of Small Business Management. https://doi.org/10.1080/00472778.2021.1955122 21 92 ): 1192-1246
Mohammadi, Seyed Moosa. (2014). The Relationship between Financial Reporting Quality and Investment Efficiency in Tehran Stock Exchange. International Journal of Academic Research in Business and Social Sciences, 4(6) , 104-113.
Nasih, Mohammad, Nadia Anridho, Nadia Klarita Rahayu, John Nowland. (2023). CEO Masculinity and CSR disclosure: evidence from Indonesia. Asian Journal of Accounting Research, 8(2), 157-169.
Nor, NHM, Nawawi, A. and Salin, ASAP (2017). The Influence of Board Independence, Board Size and Managerial Ownership on Firm Investment Efficiency. Social Science and Humanities, 25(3), 1039-1058.
Prabowo, Ramadhan. (2022). Relationship and Implementation of the Influence of Leverage and Profitability on CSR of Automotive Industry Companies Listed on the IDX. Sintaksis: Scientific Journal of Education, 2(3), 37-44.
Pradhan, Radhe S., Shh, Mukesh Kumar, Bhandari, Nabin, Mahato, Prasad Nagendra, Adikari, Namaraj, and Bam, Nirajan. (2019). The Impact of Corporate Governance on Efficiency of Nepalese Commercial Banks. Business Governance and Society. https://doi.org/10.1007/978-3-319-94613-9_20
Now, Uma and Bougie, Roger. (2009). Research Method for Business A Skill Building Approach, First Edition. John Wiley and Sons, Inc.
Shahzad, Faisal, Rehman, Ijaz Ur, Nawaz Mir, Faisal, and Nawad, Noman. (2018). Does Family Control Explain Why Corporate Responsibility Affects Investment Efficiency? Corporate Social Responsibility and Environmental Management. DOI: 10.1002/csr.1504
Shahzad, Faisal, Rehman, Ijaz Ur, Colombage, Sisira, and Nawaz, Faisal. (2019). Financial Reporting Quality, Family Ownership, and Investment Efficiency: An Empirical Investigation. Managerial Finance. Doi.Org/10.1108/MF-02-2018-0081
Siregar, Farhan Habib, Syahyunan, and Zuwina Miraza. (2022). Financial Performance, Environmental Costs and Company Size on Financial Performance with Corporate Social Responsibility as an Intervening Variable. Journal of Economics, Management, Accounting, Digital Business and Entrepreneurship, 1(2), 187-205.
Sucahyati, Diarany., Iman Harymawan, and Mohamad Nasih. (2022). Corporate Social Responsibility (SCR) Disclosure on Politically Connected-Family Firms. Journal of Accounting and Investment, 23(2) , 281-309. DOI: 10.18196/jai.v23i2.14865
Sumertiasih, Ni Luh Putu Lia and Gerianta Wirawan Yasa. (2022). The Effect of Profit Growth, Profitability and Company Size on Earnings Quality. E-Journal of Accounting, 32(5), 1301-1316. DOI: 10.24843/EJA.2022.v32.i05.p14
Thasya, Noriko, Lisah, Gozal, Natasyah, Veronika , and Rahmi, Namira Ufrida. (2020). The Influence of Good Corporate Governance on Corporate Social Responsibility in Transportation Sub-Sector Companies. Journal of Ocean Economics and Business, 11 (1), 69-82.
Zhong, Ma and Lucia Gao . (2017). Does Corporate Social Responsibility Disclosure Improve Firm Investment Efficiency? Evidence from China. Review of Accounting and Finance. https://Doi.Org/10.1108/RAF-06-2016-0095
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Published
2025-01-15
How to Cite
I Made Gde Kamal Mulia, Jati, I. K., Widhiyani, N. L. S., & Sisdyani, E. A. (2025). PROFITABILITY, CORPORATE GOVERNANCE, AND FAMILY OWNERSHIP EFFECT ON CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE. KRISNA: Kumpulan Riset Akuntansi, 16(2), 259–270. https://doi.org/10.22225/kr.16.2.2025.259-270
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