THE ROLE OF FAMILY OWNERSHIP TOWARD CORPORATE SOCIAL RESPONSIBILITIES: GOVERNANCE AS A MODERATING VARIABLE in INDONESIA

Authors

DOI:

https://doi.org/10.18533/ijbsr.v11i1.1349

Keywords:

CSR Performance, Internal CSR, External CSR, Corporate Governance, Stochastic Frontier Approach (SFA),

Abstract

This study examines the financial implications of corporate social responsibility (CSR) in family firms in Indonesia and the role of corporate governance (CG) in improving the CSR performance of family-controlled firms. Family firms, on the one hand, are known as firms that only care about families, are run privately and ignore wider CSR. On the other hand, it is precisely because it really maintains the "name" so that the family firms will strive to do CSR well to its stakeholders. Corporate governance is measured by using the Stochastic Frontier Approach (SFA). The research sample consists of 102 firm years. The data analysis method uses moderated regression analysis (MRA). The results of this study show that family ownership in manufacturing companies in Indonesia increases CSR disclosure, regardless of whether the stakeholders come from internal or external parties. The results also show that corporate governance, both effectively and efficiently, has no effect on CSR disclosure in general in family firms. However, effective corporate governance can strengthen the relationship between family ownership and CSR disclosure if it is based on internal and external stakeholders. Meanwhile, efficient corporate governance is proven to be unable to enhance the influence of family ownership on CSR disclosure, both in general and in separated way between internal and external stakeholders.

 

Author Biography

Bambang Hariadi Dr, Brawijaya University

Accounting Department

Faculty Economic and Business

References

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2021-03-14

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