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In this study, researcher use debt to equity ratio DER. According to Kasmir 2012:157, debt to equity ratio is a ratio used
to assess the debt to equity. This ratio is useful to know the amount of funds provided by creditors with the owner of the company and
also provides a general indication of the companys financial viability and risk.
Formula for calculating leverage DER is as follows:
B. Previous Research
1. Factors Affecting Social Disclosure in Annual Report on
Manufacturing Companies Listed in the Jakarta Stock Exchange Andre Christian Sitepu and Hasan Sakti Siregar, 2009
The purpose of this research is to examine the effect of corporate characteristics, consist of size of board of commisioner, leverage,
company size and profitability to corporate social responsibility disclosure. This research can explain the decision making about the
corporate social responsibility disclosure done by manufacturing companies listed in JSX for the year 2007. The data used are in form of
annual reports from 33 companies used as sample for the year 2007. The statistical methods use in this research is multiple regressions.
The result of this research shows that size of board of commisioner and
Debt to Equity Ratio DER
=
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profitability have significant effect to corporate social responsibility disclosure , while leverage and company size have insignificant efect to
corporate social responsibility disclosure. 2.
The Analysis of Company Characteristic Influence toward CSR Disclosure: Empirical Evidence of Manufacturing Companies Arif
Rahman, 2008
This research investigates the influence of company characteristic toward CSR disclosure. The research is using the proxy of management
ownership, leverage, size, profitability and company profile as the variable of company characteristic, while the CSR disclosure, unlike the
previous researches, is proxied by dummy score from the companies’
mandatory disclosure based on the items of Public Environmental Reporting Initiative PERI and Global Reporting Initiative Social
Performance GRISP issued by Global Reporting Initiative GRI. It found that simultaneously, company characteristics significantly
influence CSR disclosure. Whereas based on the partial test, among the characteristics observed, only company profile which significantly
influences CSR disclosure. The result indicates that legitimacy from the society is the big concern of companies and therefore drives the actions
of companies. However, the disclosure presumably depends on the awareness of the management toward social and environmental
prosperity because the pressure from investors and market is still weak.
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3. Determinants of Corporate Social Responsibility Disclosure Ratings
