Business, Management and Accounting
4 years ago

Corporations Prioritize Profits Over Social Responsibility, Study Finds

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SSRN Electronic Journal
The Influence of Earning Management and Good Corporate Governance Mechanism to Corporate Social Responsibility Disclosure at Manufacture Companies in Indonesian Stock Exchange
Rowland Bismark Pasaribu

Paper Summary

The goal was to see how companies in Indonesia share info about things they do to help society. They looked at earnings management and good governance methods in firms on the Indonesia Stock Exchange from 2009 to 2013. The study used a tool called multiple linear regressions to analyze the data. What they discovered was that things like how much the managers own, the size of the company's board, and having independent people on the board all make a big difference in how much CSR info companies give out. However, factors like playing around with earnings, how much the public owns the company, and having an audit committee didn't seem to have a big impact on the amount of social responsibility info shared.

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