Corporate governance, corporate social responsibility and performance with the moderating role of board equity ownership: Evidence from Indonesia’s oil palm companies

2020 ◽  
Vol 7 (11) ◽  
pp. 1-15
Author(s):  
Asna Asna
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Oil Palm ◽  
Company Performance ◽  
Corporate Governance Mechanisms ◽  
Equity Ownership ◽  
Corporate Social ◽  
The Relationship

The Oil Palm Companies is one of the highest contributions towards Indonesia economic development. However, the company performance in the oil palm companies is far from expectation which is related to how they responsible on their shareholders as well as stakeholders. Thus, the study purpose is to examine the relations between corporate governance mechanisms, corporate social responsibility and board equity ownership on performance in Indonesia’s Oil Palm Companies. The findings highlight a positive relationship between board equity ownership, corporate social responsibility and company performance. Furthermore, the moderating role of board equity ownership has a significant positive on the relationship between independence director and company performance as well as corporate social responsibility. The relationship between female director and company performance shows the same result with the interaction of board equity ownership. Currently studies have found that corporate governance mechanisms, corporate social responsibility have significant effect on company performance. Nevertheless, this evidence showed that direct relationship between corporate governance, social responsibility and company performance have mix results. Admittedly, the indirect relationship revealed that board equity ownership contributes significant effect on the relations between corporate governance, social responsibility and company performance particularly in Indonesia’s oil palm companies. Based on the author knowledge, a few studies have been done in oil palm companies which it provides a prominent issue in corporate governance mechanism particularly on board equity ownership which majority is held by family member ownership. Keywords Corporate governance, social responsibility, board equity ownership, company performance

scholarly journals CORPORATE SOCIAL RESPONSIBILITY AND EARNINGS MANAGEMENT: THE ROLE OF CORPORATE GOVERNANCE

2019 ◽  
Vol 7 (5) ◽  
pp. 1338-1347
Author(s):  
Gemi Ruwanti ◽  
Grahita Chandrarin ◽  
Prihat Assih
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Firm Size ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

Purpose: The purpose of this paper is to examine the role of corporate governance in the relationship of Corporate Social Responsibility (CSR) and firm size to earnings management of manufacturing firms in Indonesia. Methodology: The study draws on data from 66 firms listed in Indonesian Stock Exchange from 2014 to 2017, using a multiple regression model. The present study examines the influence of CSR on earnings management, and the impact of corporate governance on the relationship between CSR and firm size with earnings management. Main Findings: The finding showed that the effect of CSR on earnings management was significant and positive. The study also finds a statistically significant negative relationship between firm size and earnings management. The evidence also shows the role of corporate governance in the relationship of CSR and firm size to earnings management is significant and negative, it means that when the firm has good corporate governance, the firms that allocate CSR funds are relatively large, then it will tend not to practice earnings management, likewise large firms with good corporate governance will tend not to do earnings management. Research limitations/implications: The present study does not include all possible other variables that influence earnings management. Further research might increase the scope of research objects by extending the study period and need to pay attention to the firm's macro factors or economic risk factors outside of financial performance so as to provide a more comprehensive picture of the results of the study. Originality/value: The study focuses on the role of corporate governance issues such as the independence and activity of the boards and their influence on earnings management. The subject analyses the possible impact of CSR and firms size-related earnings management that has received much attention from academic research, which has largely focused on studying the publications of corporate governance in Indonesia context and can be contributes thoughts about the importance of corporate social responsibility activities that are reported as a basis for consideration incorporate policy-making to further enhance corporate awareness in the social environment, as well as the importance of corporate governance to minimize earnings management practices.

The Relationship Between Corporate Governance and Corporate Social Responsibility Expenditure in Bangladesh: Moderating Role of Firm Value

2020 ◽  
Vol 13 (2) ◽  
pp. 190-209
Author(s):  
Md Sajjad Hosain
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Banking Sector ◽  
Gender Diversity ◽  
Annual Reports ◽  
Corporate Social ◽  
The Relationship

This article aims at identifying the relationship between corporate governance (CG) and corporate social responsibility expenditure (CSRE) for the Bangladeshi banking sector. CG has been considered as the single independent variable divided into three components: board size (BS), gender diversity (GD) and board members’ interrelationship (BMI), and CSRE has been considered as the dependent variable. Further, a single moderator—firm value (FV) as been employed in order to test the moderating influence. Annual reports from 2015 to 2019 (5 years) of 35 banking firms have been used as samples. The study utilized Pearson’s correlation coefficient in order to test the direct relationships and regression analysis to test the moderating effects. The analysis has revealed that BS and GD are positively associated with CSRE while BMI has a negative association with CSRE. Furthermore, has been revealed that FV can moderate all the direct relationships. The study is expected to aid researchers in further empirical investigation over this important issue and guide policymakers to obtain more representative outcomes to make constructive decisions regarding CG and CSRE that would, in turn, increase FV.

Corporate Governance and Islamic Corporate Social Responsibility Disclosures : Shari’ah Compliant Companies in Malaysia

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Syahiza Arsad ◽  
Roshima Said ◽  
Haslinda Yusoff ◽  
Rahayati Ahmad
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Annual Reports ◽  
Return On Equity ◽  
Corporate Governance Mechanisms ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship

The paper attempts to examine the relationship between six (6) Corporate Governance mechanisms (namely board matters, nomination matters, audit matters, remuneration matters, communication matters and risk management matters) of Shari’ah Compliant Companies (ShCC) with Islamic Corporate Social Responsibility (i-CSR) disclosure. The i-CSR disclosure index was developed by incorporated the five values of Maqasid Shari’ah and Maslahah. While, this study employed the corporate governance index based on the Malaysian Code on Corporate Governance (MCCG) 2007 (Securities Commission, 2007b), MCCG 2012 (Securities Commission, 2012), Corporate Governance Guide issued by Bursa Malaysia (Bursa Malaysia, 2012), and MCCG Index 2011 from the Minority Shareholder Watchdog Group (MSWG, 2011); Omar & Abdul Rahman, (2009) and Mohammed et al. (2009).  The research used content analysis and a sample of 187 ShCC annual reports from 2008 to 2013. STATA was used to assess the relationship between CG mechanisms and i-CSR disclosure in this analysis. The result of the relationship between CG mechanisms and i-CSR disclosure after statistically control by firm size (proxy by total assets) and profitability (proxy by return on assets, net profit margin and return on equity) showed that only remuneration matters (RM), communication matters (CM) and risk management matters (RK) positive and significantly influenced the i-CSR disclosure.

Corporate Governance and Corporate Social Responsibility

2009 ◽  
Author(s):  
Ann K. Buchholtz ◽  
Jill A. Brown ◽  
Kareem M. Shabana
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Goals ◽  
Governance Framework ◽  
Use Of Resources ◽  
Corporate Social ◽  
The Relationship ◽  
Expected Outcomes

Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. This article outlines the relationship between corporate governance and corporate social responsibility (CSR). It begins by examining the role of corporate governance in creating value for shareholders. It focuses on the actions of the corporation and the board toward its shareholders and other stakeholders, i.e., how corporate governance serves or fails to serve their interests. It covers the assumptions that underlie theories of corporate governance and the expected outcomes of various board structures and compositions. It then examines the state of corporate democracy, the issue of accountability, and key legislation relative to corporate governance.

scholarly journals The Interaction Between Corporate Social Responsibility and Earnings Management Using Board Characteristics as Moderating Variable

2019 ◽  
Vol 7 (1) ◽  
pp. 1415
Author(s):  
Fiola Finomia Honesty
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Stock Exchange ◽  
Educational Background ◽  
Manufacturing Companies ◽  
Corporate Governance Mechanisms ◽  
Corporate Social ◽  
The Relationship

This study aims to examine the moderating effect of the characteristics of the board of commissioners on the relationship between corporate social responsibility disclosure and earnings management. The research sample consisted of 30 manufacturing companies listed on the Indonesia Stock Exchange during the period 2010-2015. The results obtained show a significant effect of corporate social responsibility on earnings management. In addition, the characteristics of the board of commissioners such as the board of commissioner's educational background and the frequency of board of commissioners meetings strengthen the relationship between corporate social responsibility and earnings management Keywords: corporate social responsibility, corporate governance mechanisms, earnings management, characteristics of the board of commissioners

scholarly journals Does Corporate Social Responsibility Reduce Earnings Management? The Moderating Role of Corporate Governance and Ownership

2019 ◽  
Vol 23 (2) ◽  
pp. 45-55 ◽  
Author(s):  
Aymen Ajina ◽  
Faten Lakhal ◽  
Sabrine Ayed
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

The purpose of this paper is to investigate the relationship between corporate social responsibility and earnings management and the moderating effect of corporate governance and ownership structure on this relationship. Using panel data for a sample of French listed companies between 2010 and 2013, we find that CSR engagementconstrain earnings management practices suggesting that managers would comply with the ethical requirements and satisfy stakeholders’ interests. The results also show that the effect of CSR on earnings management is particularly stronger in more independent boards and with high institutional ownership structure. These corporate governance devices help mitigating managerial opportunistic behavior.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

Corporate Social Responsibility and Government: The Role of Discretion for Engagement with Public Policy

2021 ◽  
pp. 1-29
Author(s):  
Jette Steen Knudsen ◽  
Jeremy Moon
Keyword(s):  
Public Policy ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Integrated Framework ◽  
The Law ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

We investigate the relationship of corporate social responsibility (CSR) (often assumed to reflect corporate voluntarism) and government (often assumed to reflect coercion). We distinguish two broad perspectives on the CSR and government relationship: the dichotomous (i.e., government and CSR are / should be independent of one another) and the related (i.e., government and CSR are / should be interconnected). Using typologies of CSR public policy and of CSR and the law, we present an integrated framework for corporate discretion for engagement with public policy for CSR. We make four related contributions. First, we explain the dichotomous and the related perspectives with reference to their various assumptions and analyses. Second, we demonstrate that public policy for CSR and corporate discretion coexist and interact. Specifically, we show, third, that public policy for CSR can inform and stimulate corporate discretion and, fourth, that corporations have discretion for CSR, particularly as to how corporations engage with such policy.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

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