Re-examining Firm Size and Corporate Social Responsibility: The Visibility Approach

 In a previous study on the firm size and corporate social responsibility (CSR) participation conducted by Golrida, et al (2017), different result is reported with Udayasankar’s hypothesis (2008) which states a U-shape relationship of firm size and CSR participation.  However, it is arqued that Udayasankar hyppothesis is better applicable in developed countries, while in developing countries an inverted - U shape relationship is found. But, Golrida et al (2017) can only prove the form of relationship using two perspectives stated by Udayasankar, which are operating scale and resourcess access.  The proxy of visibility could not capture the inverted U shape relationship due to measurement problem in the previous study. This study aims at re-examining the relationship between firm size and CSR participation from the visibility perpective by employing two proxies of visibility, which are analyst coverage and news coverage respectively.  Indonesian companies are chosen to capture the context of developing country. Content analysis is done in obtaining CSR data of 433 companies listed on Indonesian Stock Exchange on 2012, while the data of visibility proxies are  extracted from Thomson Reuters and selected news portal namely, Detik.com. The result of study shows that both visibility proxies, which are Analysts Coverage and Media Coverage form inverted U- shape relationship with CSR participation. The findings in this study contribute to the literature that, the form of firm size and CSR participation relationship in the context of developing countries is different than those in developed countries

The Complexity of Relationship between Corporate Social Responsibility (CSR) and Financial Performance

This study argues that, inconsistent results of the Corporate Social Responsibility (CSR) relationship with financial performance is due to the complexity of relationship between two variables. The complexity of relationship stems from the nature of CSR, which is unseparable from its environment. This nature of relationship brings unfavourable impact on empirical research. The conclusion obtained from empirical evidents of such relationship will be highly contextual and lack generalization. This study proposes variables that led to the complexity of CSR relationship and financial performance, which are country characteristics as well as CSR forms and dimensions. Country characteristics determine the tendency of CSR practices, which finally influence the strength of CSR relationship with financial performance. The selection of CSR forms and dimensions to be done is part of a company’s strategy in an effort to achieve legitimacy

Hubungan Corporate Social Responsibility (CSR) Dengan Kinerja Keuangan - Sebuah Analisis Meta

Penelitian ini berargumentasi bahwa inkonsistensi hasil peneltian terdahulu mengenai hubungan CSR dan kinerja keuangan adalah disebabkan kompleksitas hubungan CSR dan kinerja keuangan. Oleh sebab itu, untuk mendapatkan gambaran hubungan CSR dan kinerja keuangan yang komprehensif, variabel-variabel penyebab kompleksitas hubungan tersebut harus turut dianalisis. Penelitian ini bertujuan untuk mengungkap kompleksitas hubungan CSR dan kinerja keuangan dengan mengintegrasikan 55 studi terdahulu menggunakan Analisis Meta. Koefisien korelasi digunakan sebagai effect size mengukur kekuatan hubungan CSR dan kinerja keuangan. Hasil Analisis Meta membuktikan bahwa CSR berhubungan positif dengan kinerja keuangan dalam segala konteks studi. Hasil analisis lebih lanjut menunjukan bahwa hubungan CSR dengan kinerja keuangan adalah sangat heterogen. Hasil analisis ini membuktikan eksistensi variabel-variabel pemoderasi dalam hubungan CSR dan kinerja keuangan, yakni: karakteristik negara, dimensi dan bentuk CSR, keragaman pengukuran CSR, dan keragaman pengukuran kinerja keuangan

Re-examining Firm Size and Corporate Social Responsibility: The Visibility Approach

In a previous study on the firm size and corporate social responsibility (CSR) participation conducted by Golrida, et al (2017), different result is reported with Udayasankar’s hypothesis (2008) which states a U-shape relationship of firm size and CSR participation. However, it is arqued that Udayasankar hyppothesis is better applicable in developed countries, while in developing countries an inverted - U shape relationship is found. But, Golrida et al (2017) can only prove the form of relationship using two perspectives stated by Udayasankar, which are operating scale and resourcess access. The proxy of visibility could not capture the inverted U shape relationship due to measurement problem in the previous study. This study aims at re-examining the relationship between firm size and CSR participation from the visibility perpective by employing two proxies of visibility, which are analyst coverage and news coverage respectively. Indonesian companies are chosen to capture the context of developing country. Content analysis is done in obtaining CSR data of 433 companies listed on Indonesian Stock Exchange on 2012, while the data of visibility proxies are extracted from Thomson Reuters and selected news portal namely, Detik.com. The result of study shows that both visibility proxies, which are Analysts Coverage and Media Coverage form inverted U- shape relationship with CSR participation. The findings in this study contribute to the literature that, the form of firm size and CSR participation relationship in the context of developing countries is different than those in developed countries