Determinant of Corporate Social Responsibility Disclosure and its Impact on Company's Market Performance

Abstract

This study examined the effect of firm performance, risk, and foreign ownership on Indonesian public manufacturing companies’ CSR disclosure and market performance. A quantitative method, the multiple linear regression two stage, was used to analyze four hypotheses. The sample was 221 firm years in the 2015-2019 period. The results showed that the financial performance and financial risk variables affected the scope of corporate social responsibility disclosure. Foreign ownership structure has no significant effect on disclosure of corporate social responsibility. The size of corporate social responsibility disclosure influenced the market performance. The research implication is that management can use CSR as a market value leverage. To be able to expand disclosure, the company must have a good performance. An increase in corporate debt increases the risk faced by the company. Management can use CSR for reduce the impact of the increasing financial risk.