The Influence of Managerial and Family Ownership on Corporate Social Responsibility: Evidence from Indonesia

Rhala Fitria Inayah, Fauzan Fuadi

Abstract


This study aims to examine the impact of managerial ownership and family ownership on Corporate Social Responsibility (CSR) disclosure in companies listed in the LQ45 Index on the Indonesia Stock Exchange during the 2019-2022 period. This study employs a quantitative approach and uses secondary data from annual financial and sustainability reports. Data analysis was carried out using multiple linear regression analysis, and testing was carried out using STATA 14.0 statistical tools to test the effect of managerial ownership and family ownership on corporate social responsibility (CSR) disclosure. The results of this study show that managerial ownership has a negative effect on CSR disclosure, which suggests that higher managerial ownership correlates with less transparency in CSR reporting. In contrast, the results of this study show that family ownership does not significantly affect CSR disclosure, which indicates that family-controlled companies do not necessarily exhibit better CSR reporting practices. This study provides practical implications for policymakers and corporate stakeholders by emphasising the need for a regulatory framework that encourages transparent and fair CSR disclosure.


Keywords


Corporate Social Responsibility (CSR) Disclosure; Family Ownership; Managerial Ownership; Ownership Structure; Agency Theory

Full Text:

PDF

References


Adiputri Singal, P., & Wijana Asmara Putra, I. N. (2019). Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial, dan Kepemilikan Asing Pada Pengungkapan Corporate Social Responsibility. E-Jurnal Akuntansi, 29(1), 468. https://doi.org/10.24843/EJA.2019.v29.i01.p30

Agustia, D., Dianawati, W., & Indah, D. R. A. (2018). Managerial Ownership, Corporate Social Responsibility Disclosure and Corporate Performance. Management of Sustainable Development, 10(2), 67-71. https://doi.org/10.2478/msd-2019-0011

AL-Duais, S., Qasem, A., Wan-Hussin, W., Bamahros, H., Thomran, M., & Alquhaif, A. (2021). CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia. Sustainability, 13(21), 12237. https://doi.org/10.3390/su132112237

Alsaadi, A. (2021). Family ownership and corporate social responsibility disclosure. Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad, 00(00), 1-23. https://doi.org/10.1080/02102412.2021.1904661

Ariswari, P. M. A., & Eka Damayanthi, I. G. A. (2019). Pengaruh Profitabilitas, Leverage, dan Kepemilikan Manajemen pada Pengungkapan CSR dengan Ukuran Perusahaan sebagai Variabel Kontrol. E-Jurnal Akuntansi, 29(1), 372. https://doi.org/10.24843/EJA.2019.v29.i01.p24

Bernard, A. B., Jensen, J. B., & Schott, P. K. (2006). Transfer pricing by U.S-based multinational firms. Working Paper, Tuck School of Business at Dartmouth, 53(9), 1689-1699. https://doi.org/10.3386/w12493

Cho, J., & Ryu, H. (2022). Impact of Managerial Ownership on Corporate Social Responsibility in Korea. Sustainability, 14(9), 5347. https://doi.org/10.3390/su14095347

Esa, E., & Zahari, A. R. (2016). Corporate Social Responsibility: Ownership Structures, Board Characteristics and the Mediating Role of Board Compensation. Procedia Economics and Finance, 35, 35-43. https://doi.org/10.1016/S2212-5671(16)00007-1

Fuadi, F., Rubihani, D., Puspitasari, S., Sinatria, N., & Pasangka, P. H. (2024). The Role of CEO Characteristics in Enhancing Carbon Emission Disclosure: Evidence from Indonesia. Hasanuddin Economics and Business Review, 8(2), 96. https://doi.org/10.26487/hebr.v8i2.5606

Fuadi, F., Sawirti, R. A., Agustina, F. F., Mulyono, A., & Pratiwi, R. T. (2024). Apakah Struktur Kepemilikan Mempengaruhi Penghindaran Pajak? Bukti Empiris Dari Pasar Modal Indonesia. Jurnal Akuntansi dan Keuangan, 29(1), 69-82. https://doi.org/10.23960/jak.v29i1.2053

Gusrianti, Nirmala, M. P., Kamela, H., Djakman, C. D., & Adhariani, D. (2020). Corporate social responsibility disclosure to firm value with family ownership as the moderating variable. International Journal of Innovation, Creativity and Change, 10(11), 674-688.

Hamzah, N., & Abdullah, M. (2018). Stakeholder Power towards Corporate Social and Environmental Responsibility Disclosure: Evidence from Malaysia. Asian Journal of Accounting and Governance, 10, 1-10. https://doi.org/10.17576/AJAG-2018-10-01

Hitt, M. A., & Sirmon, D. G. (2003). Managing Resources. Entrepreneurship Theory and Practice, 27(4), 339-358.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 4, 305-360.

Kholifah, S. (2021). Pengaruh Kepemilikan Manajerial Terhadap Pengungkapan Corporate Social Responsibility. Jurnal Sosial Teknologi, 1(11), 64-76. https://doi.org/10.59188/jurnalsostech.v1i11.236

Kraus, S., Pohjola, M., & Koponen, A. (2012). Linking organizational and managerial innovation. Review of Managerial Science, 6(3), 265-286. https://doi.org/10.1007/s11846-011-0065-6

Labelle, R., Hafsi, T., Francoeur, C., & Ben Amar, W. (2018). Family Firms' Corporate Social Performance: A Calculated Quest for Socioemotional Wealth. Journal of Business Ethics, 148(3), 511-525. https://doi.org/10.1007/s10551-015-2982-9

Laelatus Sholikhah, & Titiek Rachmawati. (2022). Pengaruh Profitabilitas Dan Karakteristik Good Corporate Governance (GCG) Terhadap Pengungkapan Corporate Social Responsibility (CSR). Jurnal Ekonomi Bisnis dan Akuntansi, 2(3), 337-348. https://doi.org/10.55606/jebaku.v2i3.879

Lopez-Gonzalez, E., Martinez-Ferrero, J., & Garcia-Meca, E. (2019). Corporate social responsibility in family firms: A contingency approach. Journal of Cleaner Production, 211, 1044-1064. https://doi.org/10.1016/j.jclepro.2018.11.251

Matten, D., & Moon, J. (2017). "Implicit" and "Explicit" CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Corporate Social Responsibility, 33(2), 257-277. https://doi.org/10.5465/amr.2008.31193458

Nainggolan, Y. T., & Karunia, E. (2022). Leverage, corporate governance dan profitabilitas sebagai determinan earnings management. Akuntabel, 19(2), 420-429. https://doi.org/10.30872/jakt.v19i2.10752

Nurleni, N., Bandang, A., Darmawati, D., & Amiruddin, A. (2017). Article information: International Journal of Law and Management. https://doi.org/10.1108/IJLMA-03-2017-0078

Paek, S., Xiao, Q., Lee, S., & Song, H. (2013). Does managerial ownership affect different corporate social responsibility dimensions? An empirical examination of U.S. publicly traded hospitality firms. International Journal of Hospitality Management, 34, 423-433. https://doi.org/10.1016/j.ijhm.2012.12.004

Poletti-Hughes, J., & Martinez Garcia, B. (2022). Leverage in family firms: The moderating role of female directors and board quality. International Journal of Finance & Economics, 27(1), 207-223. https://doi.org/10.1002/ijfe.2147

Rivandi, M. (2020). Pengaruh Struktur Kepemilikan Terhadap Pengungkapan Corporate Social Responsibility Pada Perusahaan High Profile di BEI. Akuntabilitas, 13(2), 205-220. https://doi.org/10.15408/akt.v13i2.17336

Rohmania, & Erna Lovita. (2020). Pengaruh managerial ownership, audit committee, boards of commissioners dan leverage terhadap corporate social responsibility. Sekolah Tinggi Ilmu Ekonomi Indonesia, 1, 1-24.

Rovelli, P., Ferasso, M., De Massis, A., & Kraus, S. (2021). Thirty years of research in family business journals: Status quo and future directions. Journal of Family Business Strategy, 12, 100422. https://doi.org/10.1016/j.jfbs.2021.100422

Safitry, F., Indra, A. Z., & Agustina, Y. (2022). Pengaruh Struktur Kepemilikan, Dewan Komisaris, dan Leverage terhadap Pengungkapan Social Responsibility. Review of Applied Accounting Research (RAAR, 2(2), 129. https://doi.org/10.30595/raar.v2i2.13021

Sahasranamam, S., Arya, B., & Sud, M. (2020). Ownership structure and corporate social responsibility in an emerging market. Asia Pacific Journal of Management, 37(4), 1165-1192. https://doi.org/10.1007/s10490-019-09649-1

Saptowinarko Prasetyo, M. (2023). Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial, Dan Kepemilikan Asing Terhadap Pengungkapan Corporate Social Responsibility. Jurnal Ekonomi dan Bisnis, 15(2), 61-69. https://doi.org/10.55049/jeb.v15i2.224

Sibuea, R. M. F., & Arieftiara, D. (2022). Pengaruh kepemilikan manajerial, kepemilikan institusional, dan budaya organisasi terhadap pengungkapan corporate social responsibility dengan komite audit sebagai variabel moderasi. Veteran Economics Management and Accounting Review, 1(1), 133-148. https://doi.org/10.59664/vemar.v1i1.4836

Stock, C., Pütz, L., Schell, S., & Werner, A. (2024). Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field. Journal of Business Ethics, 190(1), 199-259. https://doi.org/10.1007/s10551-023-05382-4

Suartama, M. B., & Sukartha, I. M. (2020). The effect of managerial ownership on earnings management of acquirers on the Indonesian stock exchange. American Journal of Humanities and Social Sciences Research, 4(7), 31-34.

Sucahyati, D., Harymawan, I., & Nasih, M. (2022). Corporate Social Responsibility (CSR) Disclosure on Politically Connected-Family Firms. Journal of Accounting and Investment, 23(2), 281-309. https://doi.org/10.18196/jai.v23i2.14865

Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif dan R&D. Penerbit Alfabeta.

Sukasih, A., & Sugiyanto, E. (2017). Pengaruh Struktur Good Corporate Governance Dan Kinerja Lingkungan Terhadap Pengungkapan Corporate Social Responsibility (Studi Pada Perusahaan Manufaktur di Bursa Efek Indonesia Periode 2011-2015). Riset Akuntansi dan Keuangan Indonesia, 2(2), 121-131. https://doi.org/10.23917/reaksi.v2i2.4894

Sumilat, H., & Destriana, N. (2017). Faktor-Faktor Yang Mempengaruhi Pengungkapan Corporate Social Responsibility. Jurnal Analisa Akuntansi dan Perpajakan, 1(2), 129-140. https://doi.org/10.25139/jaap.v1i2.144

Surono, & Mayangsari, S. (2022). Koneksi Politik, Kepemilikan Keluarga dan Ukuran Perusahaan Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan. Scholar.Archive.Org, 0832, 1-26.

Syaraswati, D., & Setiany, E. (2022). Political connection, family ownership, board commissioners and market orientation on the corporate social responsibility disclosure. Review of Integrative Business and Economics Research, 11, 135-144.




DOI: http://dx.doi.org/10.26487/hebr.v8i3.6043

Refbacks

  • There are currently no refbacks.


Copyright (c) 2025 Hasanuddin Economics and Business Review

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

______________________________________________________________________

Hasanuddin Economics and Business Review (ISSN Print: 2549-3221 | ISSN Online: 2549-323X ) is licensed under a Creative Commons Attribution 4.0 International License. Preserved in LOCKSS, based at Stanford University Libraries, United Kingdom, through PKP Private LOCKSS Network program.

 

Indexing and Abstracting: