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CHAPTER V CONCLUSION
A. Conclusion
This research examines of board size, company size, profitability, and leverage on corporate social responsibility reporting in the annual report.
Analyses are performed using multiple regression analysis with the program Statistical Package for Social Science SPSS 20.0. The data in this research
include 16 mining companies period 2009 – 2011 where the total of samples
are 48 mining companies.
Test results and discussion in the previous chapter can be concluded as follows:
1. Based on the multiple regression result, board size does not have significant influence towards the CSR reporting. The results of this
research support the research that has been done by Collier and Gregory
1999 cited in Bachtiar and Siregar 2010:244.
2. Based on the multiple regression result, company size has significantly positive influence towards the CSR reporting. The results of this research
support the researches that have been done by Al-Haj et al. 2011, Bachtiar and Siregar 2010, Darwis 2009, Gao and Joshi 2009, Janggu
et al. 2007 and Reverte 2009.
3. Based on the multiple regression result, profitability does not have significant influence towards the CSR reporting. The results of this
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research support the researches that have been done by Al-Haj et al. 2011, Bachtiar and Siregar 2010, Darwis 2009, Rahman 2008 and
Reverte 2009.
4. Based on the multiple regression result, leverage does not have significant influence towards the CSR reporting. The results of this research support
the researches that have been done by Al-Haj et al. 2011, Bachtiar and Siregar 2010, Darwis 2009, Janggu et al. 2007, Rahman 2008,
Reverte 2009, Siregar and Sitepu 2009.
B. Research Finding Implication
1. Board size variable is insignificant factor in measuring the relation with CSR reporting. It implies that board size board commissioner in mining
companies is very large so that could limit the communication and coordination among board members and consequently will hamper
monitoring process. So, larger board size will have negative influence on
CSR reporting.
2. Company size significantly affects CSR reporting. it can be concluded that company size is significant factor to measure disclosure of CSR
information, especially mining companies with high total assets tend to disclose more CSR information in annual report than mining companies
with lower total assets. It implies that large firms have greater agency costs. To reduce the agency costs, company tend to disclose more extensive
information. Theoretically, larger companies tend to receive more attention
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from the public and are under greater public pressure to exhibit social responsibility. Larger companies can be expected to disclose more social
and environmental information to prove their corporate citizenship, thereby
legitimizing their existence.
3. Profitability measured by ROE is insignificant factor to measure disclosure of CSR information in annual report of mining companies. It implies that
based on legitimacy theory, namely one of the arguments in the relationship between profitability and level of CSR reporting is that when a company
has a high rate of profitability, the company management considers not need to report things that can disturb the information about the companys
financial success. Conversely, when low rate of profitability, company hopes to the users of report will read good news of companys performance,
for example in the social sphere and thus investors will still invest in the company and also other investors will be interested to investee in its
company. It can be concluded that profitability has a negative relationship
of the level of CSR reporting.
4. Leverage measured by DER is insignificant factor to measure disclosure of CSR information in annual report of mining companies. It implies that
company with high leverage should reduce its CSR reporting to avoid creditor scrutiny.
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C. Limitation and Suggestion
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