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EFFECT OF MANAGERIAL OWNERSHIP, RETURN ON ASSETS,
AND COMPANY SIZE ON DISCLOSURE OF CORPORATE
SOCIAL RESPONSIBILITY
Serli Marlina
Faculty of Economics and Business, Kuningan University, Indonesia
PAPER INFO ABSTRACT
Received:
September,1th 2022
Revised:
September, 9th 2022
Approved:
September,10th2022
Background: This research is motivated by the gap between companies
that are required to play an active role in the preservation and welfare of
the environment around the company. Corporate Social Responsibility can
be an advantage for various parties, including the government, companies,
employees, and the surrounding community. Corporate Social
Responsibility is an accounting concept that emphasizes corporate
responsibility to the environment and society.
Aim: Analyzing the effect of Managerial Ownership, Return On Assets, and
Company Size on Corporate Social Responsibility Disclosures
simultaneously or partially in textile and garment sub-sector companies
listed on the Indonesia Stock Exchange (IDX) in 2016-2020.
Method: The method used in this research is a descriptive method and
verification method. The data analysis technique in this study used panel
data regression analysis.
Findings: Based on the results of the t-test (partial) show that Managerial
Ownership, Return On Assets, and Company Size have a significant positive
effect on the Disclosure of Corporate Social Responsibility. Based on the F
(simultaneous) test, shows that Managerial Ownership, Return On Assets,
and Company Size together have a significant effect on Corporate Social
Responsibility Disclosure.
KEYWORDS
Managerial Ownership, Return On Assets, Company Size And Corporate Social,
Responsibility Disclosure
INTRODUCTION
At the moment this company sued for playing a role active in the preservation and well-
being environment around the company (Cohen, 2017). Corporate Social Responsibility is an
accounting concept that emphasizes corporate responsibility to the environment and society.
Corporate social information is reflected in corporate social responsibilities. Application CSR by a
company could be realized with CSR disclosure that is socialized to the public in the annual report
company (Mirfazli, 2008). CSR becomes mandatory because the company is not only company-
oriented to owners of capital (investors and creditors), but also obligations to other parties who are
interested, like consumers, employees, the Public, government, and suppliers (Yılmaz, 2011).
According to there are several factors that can influence CSR disclosures including
profitability, company size, and share ownership (Rahman & Widyasari, 2008). The research
according to reveals the factors Other factors that influence CSR disclosure are the current ratio, debt
to equity, total assets turnover, net profit margin, and firm size. The research conducted that factors
that influence disclosure CSR among them ownership managerial, profitability, and size company
(Swandari & Sadikin, 2016).
The study which was conducted states that profitability takes an effect positive to the
disclosure of corporate social responsibility research (Machmuddah, Sari, & UTOMO, 2020). failed
to prove the influence of managerial ownership on CSR disclosure. Different results conducted
Effect of Managerial Ownership, Return On Assets, And Size Company Against Corporate Social
Responsibility Disclosure
2 Return: Study of Management, Economics and Bussines, Vol(1), Sep 2022
(Budiharta & Kacaribu, 2020), say that ownership managerial has a positive effect on the disclosure
of corporate social responsibility (CSR).
The second factor namely Return On Assets or profitability is one of the factors which can
affect CSR disclosure (Atidhira & Yustina, 2017). A high ROA indicates the performance company
is better.The third factor is company size. Company size can show whether companies are included
in the category of small, medium, and large companies. Big or small company size can be based on
total asset value, total sales, market capitalism, and several workers, and large-scale companies
usually tend to be more disclose not quite enough social responsibility than a company which has a
small scale.
Results study conducted showing the existence significant effect of firm size on corporate
social enterprise. However different results are shown (Zdravkovic & Jost, 2018). Who say that the
size of the company no take effect against disclosure is not quite enough to answer corporate social.
Study this is different from the study in on the because study this discusses the Influence of
Ownership managerial, Return On Asset and Size Company To Disclosure Responsibility Corporate
Social (Habbash, 2016).
Based on the background behind on and a lot study before which not yet consistent, the
researcher is interested in the title "The Effect of Managerial Ownership, Return On" Assets and
Company Size on Corporate Social Responsibility Disclosure (In the Textile & Garment Subsector
Listed on the Indonesia Stock Exchange 2016- 2020)”.
METHODS
Study this use method descriptive and verification. Because by the purpose of the research that the
author is doing, which in this research is a study which aims for making a description of something
subject or object by systematic, factual as well as accurate facts, traits, as well as connections
Among phenomena, investigated (Flick, 2015).
A.Technique Collection Data
1. Observation No Participate
In this study, the technique used to collect data The method used is non-participating
observation, namely observations made by researchers by not involving themselves or participating
directly in observation activities but looking for it (Holloway & Ehui, 2002).
2. Overview of Literature
Studying existing theories or literature related to the problem which is researched well
from a book, creates scientific in the form of a thesis, thesis, and the like. Articles, journals,
the internet, or other literature related to the problem researched. A method by conducting a
review of reading sources or literature related to the problem that will be discussed as a
source for support composing this research (Randolph, 2009).
B. Technique Analysis Data
Analysis of data is wrong one part which is important because analyzing something
data could give meaning and meaning useful for the problem of this research specifically
(Angelides, 2001). The data analysis process begins by reviewing all available data from
various sources such as interviews, personal documents, documents official, etc. To could
formulate the problem, one must understand methods of data analysis and be able to interpret
the results of the analysis (King, Tomz, & Wittenberg, 2000). Method The analysis used in
this study uses the E-mail data processing program. Views (Econometric Views).
1. Analysis Descriptive
Effect of Managerial Ownership, Return On Assets, And Size Company Against Corporate Social
Responsibility Disclosure
3 Return: Study of Management, Economics and Bussines, Vol(1), Sep 2022
Descriptive analysis is used to find out about the description of the variables variable
which there is in the study. With analysis descriptive they could obtain information including
the minimum value or the lowest value in the data, the value of maximum or the highest
value in the data, and the mean (mean) and standard deviation of each variable. The mean is
used to find out how much relevant data varies from the mean as well as to identify with
standard size of each variable. Score maximum used for use tool help in the form of software
computer data processing program e-views.
A.Analysis Statistics Descriptive Variable Return On Asset
Return on assets is a ratio that shows how much net income is which obtained by the
company when measured by asset value
B. Analysis Statistics Descriptive Variable Size Company
According to ferry and jones (Sujianto, 2001:97) size company describe as a big or
small something company which showed by total assets, amount of sales, average total sales,
and average total assets.
2. Analysis verify
a. Test Normality
The normality test aims to test whether, in a regression model, variable dependent
have distribution normal or no
b.Test Autocorrelation
The purpose of the autocorrelation test is to be able to find out the presence or
absence of correlation in the independent variable.
c.Test Multicollinearity
The Muctilinearity test aims to be able to test whether the regression model found a
correlation between the independent variables (independent). The regression model that well
there should be no correlation between independent variables. If variables are independent of
each other correlated, so variables this not orthogonal. Orthogonal variables are independent
variables whose correlation values between each other variable independent same as zero.
d.Test Heteroscedasticity
The heteroscedasticity test aims to test whether the regression model occurs variance
inequality from the residual of one observation to another observation. The regression model which
is good is not occurring heteroscedasticity that is with To do test White Heteroskedasticity.
Interpretation of the test result is as follows:
-
H 0: Not there is heteroscedasticity
-
H a: there is heteroscedasticity
If score P-Value Obs*Square < a (0.05) then H 0 Rejected
Table 1
Test Heteroscedasticity
Heteroskedasticity Tests: White
F-statistics
2.191238
Prob. F(3.76)
0.0959
Obs*R-squared
6.368821
Prob. Chi-Square(3)
0.0950
Scaled explained SS
4.134097
Prob. Chi-Square(3)
0.2473
Source: Results Output E-views 9.0
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Responsibility Disclosure
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RESULTS AND DISCUSSION
The population of this study is the textile and garment sub-sector companies registered
in Indonesia Exchange Effect Indonesia (IDX) year 2016–2020 which amount to 20
company. After the sample was selected using the quota sampling method, then it was
obtained The research sample was 16 companies with a balance of certain criteria.
1. Analysis Descriptive
Descriptive analysis is used to describe the research variables which consist of
disclosure of social responsibility, managerial ownership, return on assets, and size company.
Descriptive four variables researched on textile and garment manufacturing companies listed
on the Stock Exchange Indonesia in 2016-2020 processed using the application. Descriptive
Statistical Analysis of Social Responsibility Disclosure variables company
Corporate social responsibility is a form of corporate concern to the Public caused by
the existing company that produces an impact or result from the company's operations, in
addition, the form of responsibility given can provide benefits to the community which is the
environment around the company. In studying this, disclosure. corporate social responsibility
using the CSRIj formula which is the ratio of information disclosed by the company to the
amount of disclosure that is required in the Global Reporting Initiative (GRI) is 91 items.
2. Analysis Statistics Descriptive Variable Ownership Managerial
Managerial ownership is the manager as a shareholder in the company and owns shares
in the company. A manager who owns company shares will of course align his interests as a
manager with his interests as a shareholder. Managerial ownership in this study uses a
formula with KM which is the number of managerial shares from the total outstanding shares
of the company. The example of calculating managerial ownership at PT Polychem Indonesia
Tbk (ADMG) in 2016 is as follows:
Managerial Ownership = Total Management Shares X 100% Total Outstanding Stock
KMADMG = 1,987,500 X 100%
3,889,179,559
KMADMG = 0.05%
CONCLUSION
Managerial ownership, return on assets, and company size is together influential and
significant to the disclosure of social responsibility. It means that the increasing managerial
ownership, return on assets, and company size, the more will increase disclosure not quite
enough to answer social company and significance means This research can be generalized to
all companies in the textile and garment sub-sector registered in Exchange Effect Indonesia
in 2016-2020.
Ownership managerial take to effect positive and significant to disclosure not quite
enough answer social company. It means when ownership managerial experience increases so
will be followed by increased disclosure of not quite enough answer social company and vice
versa if managerial ownership decreases it will be followed by a drop in disclosure not quite
Effect of Managerial Ownership, Return On Assets, And Size Company Against Corporate Social
Responsibility Disclosure
5 Return: Study of Management, Economics and Bussines, Vol(1), Sep 2022
enough answer social company. It means This research can be generalized to all companies in
the textile and garment sub-sector registered in Exchange Effect Indonesia in 2016-2020.
Return on Assets has a positive and significant effect on the disclosure of
responsibilities corporate social responsibility. This means that when the Return on Assets
increases, it will be followed by an increase in the disclosure of corporate social
responsibility, and vice versa if Return on Assets has decreased, it will be followed by a
decrease in disclosure of corporate social responsibility and significant meaning that this
research can be generalized for all textile and garment sub-sector companies listed on the
Indonesia Stock Exchange year 2016-2020.
Size company takes effect positively and significantly to the disclosure of corporate
social responsibility. This means that when the size of the company increases it will be
followed by an increase in the disclosure of corporate social responsibility and on the
contrary if the size company experiences a drop so will be followed by decreased disclosure
of corporate social responsibility and significant research meaning this could generalized for
all company subsector textile and garment which registered in Exchange Effect Indonesia
year 2016-2020.Consists of the overall conclusion of the research along with suggestions for
future research.
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