Vol. 10, No. 1, June 2020, pp. 46-53
ISSN: 2720-9830. 46
Journal homepage: https://jurnal.darmaagung.ac.id/index.php/socio/about
Factors Affecting The Disclosure Of Social Information In Annual Reports On Listed Manufacturing Companies On The Indonesia Stock
Exchange (Idx)
Catrin Valentina Sihombing Universitas Darma Agung
Article Info ABSTRACT
Article history:
Received April 2020 Revised May 2020 Accepted June 2020
This study aims to determine the effect of profitability, board size, leverage and firm size on CSR disclosure in manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2020 period. The sampling method used in this research is purposive sampling method. The number of samples in this study were 18 companies. The data analysis method used is multiple linear regression analysis. The results of the study partially show that the profitability variable (ROA) has no significant effect on CSR disclosure with a significant value of 0.928 > 0.05, so the first hypothesis is rejected. The variable size of the board of commissioners has a significant effect on CSR disclosure with a significant value of 0.002 <0.05, so the second hypothesis is accepted. The leverage variable (DAR) has no significant effect on CSR disclosure with a significant value of 0.604 > 0.05, so the third hypothesis is rejected. Firm size variable has a significant effect on CSR disclosure with a significant value of 0.004 <0.05, so the fourth hypothesis is accepted. The results of the model suitability test showed that the profitability (ROA), board size, leverage (DAR) and firm size had a significant effect on CSR disclosure with a significant value of 0.003 <0.05. In the analysis of the coefficient of determination obtained a value of 0.277 or 27.7% and the remaining 79.6% is influenced outside the model tested in this study.
Keywords:
CSR ROA
This is an open access article under the CC BY-SA license.
Corresponding Author:
Catrin Valentina Sihombing Universitas Darma Agung
Email: CatrinValentinaSihombing@gmail.com INTRODUCTION
The history of the development of accounting, which developed widely after the industrial revolution, caused accounting reporting to be used more as a means of accountability to the owners of capital (capitalists) resulting in the company's orientation being more in favor of the owners of capital. This causes companies to exploit natural resources and society (socially) on a small scale, resulting in damage to the natural environment and ultimately disrupting human life. Capitalism, which is only oriented towards material profit, has disrupted the balance of life by stimulating the excessive development of human economic potential which does not contribute to increasing their prosperity but instead makes them experience a decline in social conditions.
Companies are indeed required to carry out activities related to social responsibility, but CSR disclosure itself is not a must for companies, especially manufacturing companies. Corporate Social Responsibility (CSR) is a theoretical idea about the need for a harmonious relationship between a company and the community in which a company operates. CSR can be defined as responsibility that can be proven as a form of corporate accountability to the public to explain the various social impacts caused by the company and is a managerial tool used to avoid conflicts with the community around the company. The factors that will be tested in this study include
On the basis of the studies above, the researcher wants to know the extent to which companies demonstrate their responsibility to social interests by providing social information and the factors that influence the company's decision to disclose social information in annual reports on manufacturing companies in Indonesia. The researcher chose this type of company to avoid bias that might occur if the companies studied were engaged in different fields, besides that this sector had the largest number of companies. So for this study the title: "Factors Influencing Disclosure of Social Information in Annual Reports on Manufacturing Companies listed on the Indonesia Stock Exchange (IDX)".
Scope of problem
Based on the above background, there are several problems that need to be resolved regarding the factors that affect the disclosure of social information in annual reports on manufacturing companies listed on the Indonesian stock exchange, for that the authors limit the problem of this research by:
Profitability is limited by Return On Assets (ROA)
The size of the board of commissioners is limited by the number of commissioners Leverage limited by Debt to Asset Ratio (DAR)
Company size is limited by Size Formulation of the problem
Based on the description of the background above, the authors formulate the problem in this study as follows:
Does profitability affect the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020?
Does the size of the board of commissioners affect the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020?
Does leverage affect the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020?
Does the size of the company affect the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020?
Do profitability, board of commissioners size, leverage, and company size affect the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020 Research purposes
Based on the formulation of the problem above, the objectives of this study are as follows: To determine the effect of partial and simultaneous profitability on the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange. To determine the effect of the size of the board of commissioners partially and simultaneously on the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange. To determine the effect of partial and simultaneous leverage on the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange. To determine the effect of company size partially and simultaneously on the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange. To determine the effect of profitability, board of commissioners size, leverage, and company size partially and simultaneously on the disclosure of Corporate Social Responsibility in manufacturing companies listed on the Indonesia Stock Exchange.
METHOD Research Place
This study uses data taken from consumption sector companies listed on the Indonesia Stock Exchange.
The data used is financial report data from 2018-2019.
Population and Sample
The population used in this study is the consumption sector companies listed on the Indonesia Stock Exchange. The population of this research is 30 companies.
Based on the characteristics of the sampling in Table 3.1, the sample selection is carried out, namely the purpose sampling method, which is as many as 18 companies.
Research variable
This study was conducted to examine the factors that influence the disclosure of social information in annual reports on manufacturing companies listed on the Indonesia Stock Exchange. The independent variables consist of profitability (X1), board of commissioners size (X2), leverage (X3) and firm size (X4) and the dependent variable is CSR disclosure (Y).
Data Analysis Method
Multiple linear regression model is used to determine whether there is a significant effect of one dependent variable (dependent) and more than one independent variable (independent).
Jurnal Ilmiah Socio Secretum, Vol. 10, No. 1, June 2020: 46-53 Y = a+b1X1+b2x2+b1x3+b4X4+e
Information:
Y = CSR Disclosure a = constant
b1,,,,b4 = regression coefficient X1 = ROA
X2 = size of the board of commissioners X3 = DAR
X4 = company size E = residual error (error)
RESULTS AND DISCUSSION (10 PT) Research result
Descriptive statistics
Table 1: descriptive statistics
Based on the results of the analysis in table 4.2, it can be explained that:
Profitability variable (ROA), has a minimum value of 0.00, a maximum value of 0.98, a mean value of 0.1596 with a standard deviation of 0.193. The amount of data studied was 54.
Variable Size of Members of the Board of Commissioners, has a minimum value of 2, a maximum value of 6, a mean value of 3.46 with a standard deviation of 1.193. The amount of data studied was 54.
Leverage variable (DAR), has a minimum value of 0.00, a maximum value of 0.64, the mean value is 0.3329 with a standard deviation of 0.17233. The amount of data studied was 54.
Firm Size variable has a minimum value of 13.97, a maximum value of 18.66, a mean value of 15.9378 with a standard deviation of 1.38213. The amount of data studied was 54.
The CSR Disclosure variable has a minimum value of 0.67, a maximum value of 97, a mean value of 0.8718 with a standard deviation of 0.07383. The amount of data studied was 54.
Classic assumption test Normality test
Tabel 2 : HasilUji Kolmogorov Smirnov
The Kolmogorov-Smirnov test results give the Asymp value. Sig 0.200 > 0.05 it can be concluded that the data is normally distributed.
Multicollinearity test
Table 3: multicollinearity test results
The tolerance value of Profitability (ROA) is 0.861 > 0.1 and the VIF value is 1.162 < 10, so it is declared free from multicollinearity.
The tolerance value of the members of the Board of Commissioners is 0.868 > 0.1 and the VIF value is 1.152
< 10, so it is declared free from multicollinearity.
The tolerance value of Leverage (DAR) is 0.951 > 0.1 and the VIF value is 1.051 < 10, so it is declared free of multicollinearity.
The tolerance value of Company Size is 0.927 > 0.1 and the VIF value is 1.079, so it is declared free of multicollinearity.
Thus, it can be concluded that in this study there were no symptoms of multicollinearity between the independent (independent) variables.
Heteroscedasticity Test
Source: SPSS version 25 output, processed by writer (2021) Figure 1: Heteroscedasticity Test Results
From Figure 1 above, it can be seen that the data spreads around the diagonal line and follows the direction of the diagonal line, so it can be concluded that the data pattern is normally distributed and fulfills the assumption of heteroscedasticity.
Autocorrelation Test
Table 4. Autocorrelation Test Results
Source: SPSS version 25 output, processed by writer (2021)
Based on Table 4.5 above, it is known that the Durbin-Waston value is 1.200 with dl of 1.4069, du of 1.7234, 4-dl of 2.5931 and 4-du of 2.2766. Thus, it can be concluded that there is no positive and negative
Jurnal Ilmiah Socio Secretum, Vol. 10, No. 1, June 2020: 46-53
Table 5 Multiple Linear Regression Analysis
Source: SPSS output version 25, processed by the author (2021)
From the results of the study in Table 4.3 above, the multiple regression equation model and its interpretation results can be obtained as follows:
Y = 0.627+ 0.004 X1- 0.026 X2 + 0.028 X3 + 0.020 X4 Information:
The constant value is 0.0627, which means that if there are no independent variables, namely Profitability (X1), Size of the Board of Commissioners (X2), leverage (X3) and Company Size (X4), CSR Disclosure (Y) itself is 1,142.
Profitability coefficient value (X1) is 0.004 which means that for every one unit decrease in Profitability (X1), CSR Disclosure (Y) will decrease by 0.004 or 00.4% and other factors are considered constant.
The coefficient value of the Size of the Board of Commissioners (X2) is -0.026, which means that for every decrease in the Size of the Board of Commissioners (X2) by one unit, CSR Disclosure (Y) will decrease by - 0.026 or 02.6% and other factors are considered constant.
The value of the leverage coefficient (X3) is 0.028, which means that for every one unit decrease in Leverage (X3), CSR Disclosure (Y) will decrease by 0.028 or 02.8% and other factors are considered constant.
The coefficient value of Company Size (X4) is 0.020, which means that for every decrease in Company Size (X4) by one unit, CSR Disclosure (Y) will decrease by 0.020 or 02.0% and other factors are considered constant.
Individual Parameter Significant Test (t-test)
Table 6. Individual Parameter Significant Test Results (t-test)
Source: SPSS output version 25, processed by the author (2021)
For the t-test criteria, it is sought at the significance level = 5% so two sides of 2.5% or 0.025% with degrees of freedom (df) n-k or 54-4 = 50 (n is the number of data and k is the number of independent variables), the results obtained for ttable of 2,403.
From the data management above, it can be seen that the value of tcount is as follows:
The results of the profitability variable test (ROA) partially obtained a tcount value of 0.91 < ttable 2.403, where the significant value was 0.928 > 0.05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that Profitability (ROA) partially affects CSR Disclosure.
The results of the test for the variable size of the Board of Commissioners partially obtained the tcount –3.236
< ttable 2.403, where the significant value was 0.002 <0.05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that the size of the Board of Commissioners partially affects CSR Disclosure.
The results of the Leverage variable test (DAR) partially obtained a tcount value of 0.065 < ttable 2.403, where the significant value was 0.604 > 0.05. Thus it means that Ha is rejected and H0 is accepted. It can be concluded that Leverage (DAR) partially has no effect on CSR Disclosure.
The results of the partial test of the Firm Size variable obtained the value of tcount –0.382 < ttable 2.403, where the significant value was 0.004 <0.05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that company size partially influences CSR disclosure.
Simultaneous Parameter Significance Test (F-Test)
Table 7. Simultaneous Parameter Significant Test Results (F-Test)
Source: SPSS output version 25, processed by the author (2021)
For criteria, the f test was carried out at a significant level = 5% with an F value for Ftable (n-k-1) = 54-4-1 = 49 and the results obtained for Ftable of 3.73 were used as decision making criteria.
From the results of the management of Table 4.8 above, it can be seen that Fcount 4.695 > from Ftable is 3.73 and a significant value is 0.003 <0.05. Thus H0 is rejected and Ha is accepted. With this, it can be concluded that the variables of Profitability (ROA), Board of Commissioners Size, Leverage (DAR) and Company Size simultaneously have a significant effect on CSR Disclosure.
Result Interpretation
The Effect of Partial ROA on Information Disclosure
Profitability is a factor that makes management free and flexible to disclose social responsibility to shareholders. In this study, based on the results of the individual parameter significance test (t-test) which resulted in a tcount value of 0.091 < ttable 2.403, where the significant value was 0.928 > 0.05. Thus, it means that H0 is accepted and Ha is rejected. It can be concluded that ROA partially has no effect on CSR disclosure.
The results of this study indicate that profitability has no significant effect on CSR disclosure. The results of this study are in line with the results of research conducted by Fristi (2011), where profitability has a significant influence on CSR disclosure. The results of this study are not in line with the results of Cristian's (2015) research which proves that profitability does not have a significant effect on CSR disclosure.
Partial Influence of Board of Commissioners Size on CSR Disclosure
The larger the number of members of the board of commissioners, the easier it will be to control the CEO and the monitoring will be more effective. Associated with CSR disclosure, the pressure on management will also be greater to disclose it. In this study, based on the results of the individual parameter significant test (t-test) which resulted in the value of tcount –3.236 < ttable 2.403, where the significant value was 0.002 <0.05.
Thus it means that H0 is rejected and Ha is accepted. It can be concluded that the size of the board of commissioners partially has a significant effect on CSR disclosure. These results are in line with Fakhri's (2015) research, where the number of commissioners can affect CSR disclosure. The results of this study are not in line with the results of Yuliana's (2013) research, there is no significant effect between the size of the board of commissioners and CSR disclosure.
Partial Effect of DAR on CSR Disclosure
Companies with high leverage ratios have an obligation to make wider disclosures than companies with low leverage ratios. Conversely, the higher the leverage, the more likely the company will experience a violation of debt contracts, so managers will try to report higher current earnings than future earnings. In this study, based on the results of the individual parameter significant test (t-test) which resulted in a tcount value of 0.523 > ttable 2.403, where the significant value was 0.604 > 0.05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that DAR partially has no significant effect on CSR disclosure. These results are in line with Karina's (2013) research, where leverage does not have a significant effect on CSR disclosure.
The results of this study are not in line with Sitepu (2013), there is a significant effect between DAR and CSR disclosure
Partial Effect of Firm Size on CSR Disclosure
Company size is a dominant characteristic in CSR disclosure practices because of the pressure experienced by the company both from within and from outside. The bigger the company, the higher the agency
Jurnal Ilmiah Socio Secretum, Vol. 10, No. 1, June 2020: 46-53
and Ha is accepted. It can be concluded that the size of the company partially has a significant effect on CSR disclosure. These results are in line with the research of Idris (2015), where company size has a significant influence on CSR disclosure. The results of this study are not in line with Sugiarto (2013), there is no significant effect of company size on CSR disclosure.
The Effect of Profitability, Board of Commissioners Size, Leverage and Company Size on CSR Disclosure.
Based on the results of the simultaneous parameter significant test (F-test), which resulted in a Fcount of 4.695
> Ftable of 3.73 and a significant value of 0.003 <0.05. Thus H0 is rejected and Ha is accepted. With this, it can be concluded that the variables of profitability (ROA), size of the board of commissioners, leverage (DAR) and firm size simultaneously have a significant effect on CSR disclosure.
CONCLUSION
The purpose of this study was to examine the effect of indicators of Profitability, Board of Commissioners Size, Leverage and Company Size on CSR disclosure in manufacturing companies listed on the Indonesia Stock Exchange. Profitability (ROA) partially (t-test) obtained a value of tcount 0.091 < ttable 2.403, where the significant value is 0.928 > 0.05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that profitability (ROA) partially has no significant effect on CSR disclosure in manufacturing consumption companies listed on the Indonesia Stock Exchange. The size of the board of commissioners partially obtained the tcount –3.236 < ttable 2.403, where the significant value was 0.002 <0.05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that the size of the board of commissioners partially has a significant effect on CSR disclosure in manufacturing consumption companies listed on the Indonesia Stock Exchange. Leverage (DAR) partially obtained tcount 0.523 < ttable 2.403, where the significant value is 0.604 > 0.05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that partial leverage (DAR) has no significant effect on CSR disclosure in manufacturing consumption companies listed on the Indonesia Stock Exchange. The size of the company partially obtained t count 3,024 > t table 2,403, where the significant value is 0,004 < 0,05. Thus it means that H0 is rejected and Ha is accepted. It can be concluded that the size of the company partially has a significant effect on CSR disclosure in manufacturing consumption companies listed on the Indonesia Stock Exchange. Profitability, board of commissioners size, leverage and firm size simultaneously (F-test), obtained Fcount 4.695 < from Ftable worth 3.73 and significant value 0.003
<0.05. Thus H0 is rejected and Ha is accepted. With this, it can be concluded that the variables of profitability (ROA), size of the board of commissioners, leverage (DAR) and firm size simultaneously have a significant effect on CSR disclosure. From the results of multiple linear regression, the regression equation Y = 0.627+
0.004 X1- 0.026 X2 + 0.028 X3 + 0.020 X4 From the results of the coefficient of determination Adjust R Square in the regression model for consumption manufacturing companies, it is obtained by 0.277 or 27.7%.
This means that 27.7% CSR disclosure is influenced by the four independent variables, namely profitability, board of commissioners size, leverage and firm size. While the remaining 72.3% is influenced by other factors not examined in this study
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