Corporate Social Responsibility Disclosure in Indonesian Energy Companies: The Role of Ownership Structure and Environmental Performance
Keywords:
Managerial Ownership, Institutional Ownership, Environmental Performance, Corporate Social Responsibility DisclosureAbstract
Abstract:
Research aims: This study aims to analyze whether managerial ownership, institutional ownership, and environmental performance influence corporate social responsibility disclosure in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period.
Design/Methodology/Approach: This study uses a quantitative with 16 energy firms (2020-2023), totaling 64 observations. CSRD is measured by the GRI index. Managerial and Institutional Ownership are measured as shareholding percentages. Environmental Performance uses PROPER ratings (1-5). Data analysis employs SEM-WarPLS via WarpPLS 8.0..
Research findings: Empirical results show that Managerial ownership and environmental performance positively and significantly affect CSR disclosure, while institutional ownership has a negative and significant effect. The three variables explain 23.4% of CSR disclosure variation
Theoretical contribution/ Originality: This study enriches agency and legitimacy theory with evidence from Indonesia's energy sector. Findings show managerial ownership and environmental performance drive CSR disclosure, while institutional ownership has a negative effect, indicating a shift from public accountability to private monitoring
.Practitioner/Policy implication: : Regulators need to tighten oversight of firms with high institutional ownership due to the risk of reduced CSR transparency. Conversely, strengthening incentive programs such as PROVER has proven effective in encouraging broader CSR disclosure through improved environmental performance.
Research limitation/Implication: This study is limited to the 2020-2023 period and a restricted sample due to PROPER criteria. The R-square value of 23.4% indicates many other factors influence CSR disclosure. Future research is recommended to add variables, expand sectors, and extend the observation period.
Keywords: Managerial Ownership, Institutional Ownership, Environmental Performance, Corporate Social Responsibility Disclosure.
