What Really Drives Corporate Social Responsibility Disclosure? Role of Firm Size, Profitability, Board Size, and Ownership Structure
DOI:
https://doi.org/10.61656/sbamr.v8i1.130Keywords:
firm size, profitability, board of commissioners, ownership structure, corporate social responsibility disclosureAbstract
Purpose: This study aims to examine and analyze the effect of firm size, profitability, board of commissioners’ size, public ownership, and foreign ownership on the extent of corporate social responsibility disclosure among manufacturing companies listed on the Indonesia Stock Exchange.
Method: This study applies a quantitative explanatory approach. The population consists of manufacturing companies listed on the Indonesia Stock Exchange during the 2020 to 2022 period. Using a purposive sampling technique, 67 companies were selected, producing 201 firm year observations. Secondary data were obtained from annual reports published on the official website of the Indonesia Stock Exchange, and the data were analyzed using multiple linear regression with the assistance of SPSS version 25.
Findings: The results show that firm size has a significant positive effect on corporate social responsibility disclosure, while profitability, board of commissioners’ size, public ownership, and foreign ownership do not significantly affect the extent of disclosure when tested individually. Simultaneously, all five variables significantly influence corporate social responsibility disclosure and jointly explain 38.9 percent of its variation.
Implications: For regulators and standard setters, the dominant role of firm size suggests that disclosure monitoring and support mechanisms should be calibrated according to company scale, while the limited role of governance and ownership variables indicates that structural regulation alone may not be sufficient to induce broader social responsibility reporting. For managers, the results imply that larger firms carry a heavier legitimacy burden and should treat disclosure as an integral part of stakeholder management rather than a compliance formality.
Originality: Unlike prior studies that generally examine a single determinant or a narrow set of governance variables in isolation, this study integrates firm characteristics, board governance, and two distinct ownership dimensions, namely public and foreign ownership, within one coherent explanatory model applied to a three year panel of Indonesian manufacturing firms, offering a more holistic account of why disclosure extent varies among firms operating under the same regulatory environment.
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