The Effect of Corporate Governance on Corporate Social Responsibility Disclosure and Performance

• 발행기관: 한국유통과학회
• 저자명: Dwi RATMONO Dian Essa NUGRAHINI Nur CAHYONOWATI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.2, 933~941쪽, 전체 9쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.02.28

영문 초록

This research aims to test the effect of corporate governance factors on corporate social responsibility (CSR) disclosure and its impact on a company’s financial performance. The factors of corporate governance referred to in this research are foreign ownership, state ownership, number of board of commissioners, the proportion of independent commissioners, and educational background of commissioners’ board. Based on the purposive sampling method, 194 companies were selected with a total of 582 observations. The data analysis used in this study was the Structural Equation Model (SEM) approach by using the alternative Partial Least Square (PLS) method. The results of this research indicated that state ownership, number of board of commissioners, and the proportion of independent commissioners had a significant positive effect on CSR disclosure. While the foreign ownership and the educational background of the commissioners’ board have had an insignificant effect on CSR disclosure. Then, CSR disclosure had a significant positive effect on the companies’ financial performance. The findings of this study suggest that the positive effect of the CSR disclosure on performance is because the disclosure is able to improve the company’s reputation; the more social activities are carried out will improve the customers’ loyalty as well as the support from other stakeholders which in turns will improve the company’s performance.

목차

1. Introduction

2. Literature Review and Hypotheses Development

3. Research Method

4. Results and Discussion

5. Conclusion

키워드

Corporate Governance CSR Disclosure Financial Performance