CSR Disclousure and Performance Financial: Interactionof Stakeholder Influence Capacity
ERINA SUDARYATI, HERU TJARAKA

ACCOUNTING DEPARTMENT, ECONOMIC AND BUSINESS FACULTY OF AIRLANGGA UNIVERSUTY

Abstract

CSR and Performance Financial: Interactionof Stakeholder Influence Capacity



ABSTRACT
This research examines the interplay between Stakeholder Influence Capacity (SIC), Corporate Social Responsibility (CSR), and financial performance in a sample of 487 non-financial firms listed on the Indonesia Stock Exchange during the period 2014-2018. Our findings reveal that greater disclosure of CSR programs by firms is associated with improved financial performance. Additionally, we observe a significant positive relationship between investor and customer support and firm financial performance, while creditor support exhibits a negative association. However, contrary to expectations, our study does not provide evidence to support the notion that SIC strengthens the relationship between CSR disclosure and financial performance. This study contributes to the existing literature on CSR disclosure, SIC, and financial performance, and offers practical implications for enhancing financial performance by leveraging CSR programs.

Keywords: Corporate Social Responsibility, Return on Assets, Return on Equity, Stakeholder Influence Capacity

Topic: Sustainability accounting