36
3. Determinants of Corporate Social Responsibility Disclosure Ratings
by Spanish Listed Firms Camelo Reverte, 2009
This paper is to analyze whether a number of firm and industry characteristics, as well as media exposure, are potential determinants of
corporate social responsibility CSR disclosure practices by Spanish listed firms. Empirical studies have shown that CSR disclosure activism
varies across companies, industries, and time which is usually justified by reference to several theoretical constructs, such as the legitimacy,
stakeholder, and agency theories. It findings evidence that firms with higher CSR ratings present a
statistically significant larger size and a higher media exposure, and belong to more environmentally sensitive industries, as compared to
firms with lower CSR ratings. However, neither profitability nor leverage seem to explain differences in CSR disclosure practices between Spanish
listed firms. The most influential variable for explaining firms’ variation in CSR ratings is media exposure, followed by size and industry.
Therefore, it seems that the legitimacy theory, as captured by those variables related to public or social visibility, is the most relevant theory
for explaining CSR disclosure practices of Spanish listed firms.
37
4. Company Size, Profitability and Financial Leverage on Social
Responsibility Disclosure of High Profile Companies in Indonesia Stock Exchange year 2005 Herman Darwis, 2009
This study aimed to give empirical evidence that company size, profitability and financial leverage influenced social responsibility
disclosure. Research finding proved that company size significantly and positively influence CSR disclosure. It was based on agency theory that
the bigger a company was the bigger its agency theory cost was. To reduce such agency cost, a company tended to disclose information
extensively. Company’s profitability had negative and insignificantl
association. This study was in conflict with legitimacy theory that profitability had a negative influence to corporate social responsibility
disclosure. Financial leverage had no influence to corporate social
responsibility disclosure this study failed to support agency theory that predicted a company with higher leverage ratio would disclose more
information because agency cost of a company with such capital structure would be higher.
38
5. CSR Disclosures and Its Determinants: Evidence from Malaysian