Financial Performance from The Perspective of Stakeholder Theory

Abstract

Corporate Social Responsibility (CSR) disclosure represents a manifestation of corporate commitment to environmental responsibility, mandated by legal requirements. Its significance lies in its dual role of enhancing company performance and serving as a pivotal aspect of social accounting. The implementation of CSR is crucial, given its potential to ameliorate social equilibrium and welfare within society. This study seeks to empirically examine the impact of profitability, leverage, and public ownership on CSR disclosure, incorporating the Company Size variable as a control. Employing nonprobability sampling, the research encompasses a sample of 60 companies within the basic materials sector, with data analysis conducted through multiple linear regression analysis. The findings underscore a substantial and statistically significant influence of Profitability, Leverage, and Public Ownership on CSR disclosure. Notably, the research introduces a novel element by integrating the control variable of company size into the research model, differentiating it from prior studies in this domain.