39
characteristics that inspire MNCs to be more accountable in this regard. This study adopts discrimination analysis to test six hypotheses to
determine which variables influence the MNCs to post their CSED on the web sites. Data from a sample of 49 MNCs were analyzed with
STATISTICA. The independent variables tested include log of total assets size and log of total equity size, return on assets profitability,
debt ratio risk, auditor Big4 and non-Big4, country effect origin the USA or non-USA and industry effect manufacturing versus services.
The results show that companies with a strong equity base and in a good financial condition have a propensity to voluntarily disclose more
environmental information. For social disclosure, company size and the profitability are significant variables that influence CSED on websites..
These results are in line with evidence found in some prior studies.
7. Corporate Social Reporting: Empirical Evidence from Indonesia
Stock Exchange Sylvia Veronica Siregar and Yanivi Bachtiar, 2010
The purpose of this paper is to investigate the effect of board size, foreign ownership, firm size, profitability, and leverage on corporate
social responsibility CSR reporting and the possible effect of CSR reporting
on a firm’s future performance. Evidence was found that board size has a positive and non-linear
quadratic and concave relationship with CSR. This result confirms predictions that a larger board will be able to exercise better monitoring,
but that too large a board will make the monitoring process ineffective.
40
Firm size has a positive effect on CSR. This suggests that larger firms have more resources to devote to social activities and a larger asset
base over which to spread the costs of social responsibility. They also face more pressure to disclose their social activities for various groups in
society. Profitability and leverage, however, do not have significant
influence. Little evidence was found of positive impact of CSR on future performance. This result could encourage firms to disclose their CSR
activities because there seems to be a positive effect on future performance.
8. The Current State of Corporate Social Responsibility Among
Industrial Companies in Malaysia Tamoi Janggu, Corina Joseph, and Nero Madi, 2007
The main aim of the study is to find out the level and trend of CSR disclosure pattern of industrial companies in Malaysia and its relationship
with companies’ characteristics. Content analysis is used to analyse the data from the corporate annual reports of the companies from 1998 to
2003. Samples are selected using simple random sampling technique. Research findings, inter alia, indicate that there is positive
relationship between CSR and companies’ turnover but no apparent relationship is noticed with companies’ capital. Relationship between
CSR and comp anies’ profitability is also found to be positive but weak.
More disclosure by local companies as compared to their foreign counter
41
parts is another noteworthy finding. Overall, CSR level of industrial companies in Malaysia is increasing both in terms of amount of the
disclosure and the number of participating companies.
Continued on the next page
42
Table 2.1 Review of Previous Research
No Researcher
Year Title
Similarity Difference
Result Summary
1 Andre
Christian Sitepu and
Hasan Sakti Siregar 2009.
Faktor-faktor yang Mempengaruhi
Pengungkapan Informasi Sosial dalam
Laporan Tahunan pada Perusahaan Manufaktur
yang Terdaftar di Bursa Efek Jakarta.
1. Variable: Board of
commissioner size, company
size, profitability and leverage.
2. Method: Multiple
Regression Analysis.
1. Categories of CSR reporting using 3
categories Darwin, 2004 those are:
economic, environmental
performance and social performance.
2. Object is manufacturing
companies.
3. Time horizon is cross
sectional.
The result shows that size of commissioner board and
profitability has significant effect of CSR reporting.
Whereas, leverage and company size have
insignificant effect of CSR reporting. Thus, the result of
F test shows all independent variables altogether
influence amount of social information.
2 Arief Rahman
2008 The Analysis of
Company Characteristic Influence
Toward CSR Disclosure: Empirical
Evidence of Manufacturing
Companies. 1. Variable:
Company size proxied by total
asset.
2. Time horizon is time series.
3. Method: Multiple
Regression Analysis.
1. Variable: Profitability net profit
margin, company profile, management
ownership and leverage total liabilitiestotal
assets. The empirical research
shows that there is significant influence
between all company characteristics of CSR
reporting. However, among those variables only
company profile which significantly influence CSR
reporting.
Continued on the next page
43
No Researcher
Year Title
Similarity Difference
Result Summary
2. Categories of CSR reporting using 7
categories from mandatory disclosure
namely company profile, environment
management system, pollution PSAK no.8,
obedient toward law and regulation company
taxation product standardization, cost
related to the environment PSAK
no.32 no.33, company achievement
and stakeholder involvement.
3. Object is manufacturing companies listed in JSX
year 2003-2005. Conversely, the other
variables don’t have significant influence of CSR
reporting.
Continued on the next page
44
No Researcher
Year Title
Similarity Difference
Result Summary
3 Camelo
Reverte 2009 Determinants of
Corporate Social Responsibility
Disclosure Ratings By Spanish Listed
Firms. 1. Dependent
Variable: CSR content
rating CR.
2. Time horizon is time series.
3. Method: Multiple
Regression Analysis.
1. Variable: Add variable of board
size as one of independent variables.
2. Variable: Company size the
natural logarithm of market capitalization,
industry sensitivity, profitability ROA,
ownership structured, international listing,
media exposure and leverage long term debt
to equity ratio.
3. Dependent Variable: Total CSR, CSR content
rating CR, CSR management systems
rating MSR. Firms with higher CSR
ratings present a statistically significant larger size and a
higher media exposure. Also, firms with higher CSR
ratings belong to more environmentally sensitive
industries, and are listed in a higher number of foreign
stock markets. As regards ownership structure, firms
with higher CSR ratings have a less concentrated
ownership. However, neither ROA nor leverage
seems to explain differences in CSR reporting practices
between Spanish listed firms.
Continued on the next page
45
No Researcher
Year Title
Similarity Difference
Result Summary
4. Object is OCSR report listed on the Madrid
Stock Exchange and included in IBEX35
index year 2005 and 2006.
4 Herman
Darwis 2009 Ukuran Perusahaan,
Profitabilitas dan Financial Leverage
Terhadap Pengungkapan
Tanggung Jawab Sosial Perusahaan High
Profile di BEIs. 1. Variable:
Company size log total asset,
leverage DER.
2. Method: Multiple
Regression Analysis.
1. Variable: Profitability EPS.
2. Categories of CSR reporting using 7
categories from research of Sembiring
2005 that are: Environmental, ,
energy, health and safety of workers,
employee, product, community, and other.
3. Object is high profile company in IDX year
2005. 4. Time horizon is cross
sectional Only company size effect on
of level of CSR reporting. While, profitability and
leverage is not influential of level of CSR reporting. In
addition, the result of F test shows all independent
variables altogether influence amount of CSR
reporting.
Continued on the next page
46
No Researcher
Year Title
Similarity Difference
Result Summary
5 Nor hawani,
Mustaffa M. Zain and
Norashfah Hanim Al-Haj
2011 CSR Disclosures and
Its Determinants: Evidence from
Malaysian Government Link Companies.
1. Variable: Company size
