Determinants of Corporate Social and Environmental Disclosures in Indonesian Listed Companies

Abstract

-The intention of this research study is to examine and analyze the determinants of corporate social and environmental disclosures (CSED) produced by the top Indonesian companies. The population of this study is the companies listed in LQ45 index, which is issued annual and sustainability reports from 2015 to 2017. The sample selection method uses purposive, which resulted 102 samples. Methods of data analysis is using multiple linear regression proceeded by Eviews with 5% significance level. Capital intensity, company profile, firm size, net profit margin, and return on asset will be prepared from the annual reports. Information related to CSED will be handled from annual reports and sustainability reports. Content analysis technique is used to measure CSED, one score given if the item is disclosed, otherwise assigned zero. Firm size has positive significant relationship with CSED, and it is found that capital intensity and net profit margin have negative significant relationship with CSED. On the other hand, return on asset and company profile has no significant relationship with CSED. It indicates that size, experience, and investment still consider as the determinants of CSED in Indonesia case. Keywords--Capital intensity; CSED; Firm size; NPM