The impact of type of industry, company size and leverage on the disclosure of corporate social responsibility: Case on Companies listed in Indonesia Stock Exchange 2009-2012

Abstract

Many scholars are interested in the disclosure of corporate social responsibility (CSR). Several international publications proves that the disclosure of corporate social responsibility is determined by type of industry, company size, and leverage. There are few CSR research conducted in the Indonesian context. This research is conducted to give perspective on Indonesia companies disclosing their corporate social responsibility. Understanding how Indonesian companies are disclosing their corporate social responsibility will help the government in encouraging them to implement their CSR according to the regulations. 86 companies listed on Indonesia Stock Exchange (IDX) in the year of 2009-2012 were choosen under purposive sampling technique. Regression analysis, F test and t test were used to examine factors influencing the company disclose of their corporate social responsibility. The results indicate that type of industry, company size and leverage have an influence on the disclosure of CSR. It is providing evidence that most of the Indonesian companies operating in Indonesia perceive that corporate social responsibility has only benefit in the long run and little advantage in the short term.