The Quality of CSR Disclosure: Effect of Environmental Performance, Slack Resources, and Sensitivity Classification
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 09
Abstract
This study aims to analyze the influence of slack resources, environmental performance, and industry sensitivity on the quality of Corporate Social Responsibility Disclosure (CSRD) in Energy and Basic Materials sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2017 to 2023. Using a quantitative approach and explanatory research design, data was collected from annual reports, sustainability reports, and PROPER ratings from the Ministry of Environment. The results show that slack resources have a positive and significant effect on the quality of CSRD. Companies with higher slack resources tend to have better quality CSR disclosures. Environmental performance also has a positive effect on CSRD quality, where companies that achieve higher PROPER ratings show better CSR reporting. In addition, industry sensitivity has a positive effect on CSRD quality, which suggests that firms in environmentally sensitive industries tend to provide higher quality CSR disclosures to maintain legitimacy and reputation. Control variables Institutional Ownership and Company Size are not able to control the influence of the relationship between Environmental Performance, Slack Resources and Industry Sensitivity on the quality of Corporate Social Responsibility Disclosure (CSRD). These findings provide empirical evidence on the importance of slack resources, environmental performance, and industry sensitivity in improving the quality of CSRD, and offer valuable insights for corporate management and policy makers.
Authors and Affiliations
Ni Wayan Yantiari , Putu Sri Harta Mimba,
Keywords
Related Articles
- EP ID EP744537
- DOI 10.47191/jefms/v7-i9-17
- Views 22
- Downloads 0
Inter-Relationship between Buffettology and Several Companies in the LQ-45 Index, Period of 2010-2021
This study is intended to investigate whether the Indonesian Reference Index, in this case, the LQ 45, consistently applies the principles of prudent investment, known as the Buffettology principle. Buffettology which is...
The Governance-FDI Nexus: A Factor-Augmented Fixed Effect Analysis of ASEAN World Governance Indicators and Foreign Direct Investment Inflows
Utilizing a factor-augmented fixed effect model, this study investigates the intricate relationship between governance indicators and Foreign Direct Investment (FDI) inflows. Panel data from six ASEAN countries covering...
Finding the Interrelation between Smart City Initiatives and International Development Cooperation: A Critical Analysis of Current Project Processes and Underlying Motivations
This paper aims to explore the interplay between smart city projects and international development cooperation initiatives while identifying potential challenges associated with their ongoing processes. Numerous studies...
Implementation of Image Management with Cyber Public Relations to Generation Z by Government Organization
The purpose of this study was to analysis Government Public Relation strategies in the Indonesian Ministry of Health to managing their positive image using the Cyber PR strategy by David Phillips and Philip Young, the Im...
A Study on Performance Evaluation of Gold Exchange Traded Funds in India: Pre & Post Covid Scenario
For centuries, Indians have had a strong affinity for gold. However, it was only in the year 2007 when India launched its first gold ETF (Gold BeES). The underlying asset of these ETFs is gold. Also, gold ETFs give you e...