Diversification and corporate social performance in manufacturing companies

The effects of diversification on financial performance are well-established, less so the way in which diversification influences company behaviour towards stakeholder demand and social concern. This paper investigates the relationship between business diversification and corporate social performance (CSP) in an industrial setting, in Indonesia. CSP is measured with an index constructed from content and disclosure analysis of annual company reports in line with global reporting initiative standards. A sample of 107 listed manufacturing companies from the Indonesian Stock Exchange is used to estimate a lagged multiple regression model to show that industry-level diversification does not have an effect on CSP. However, distinguishing between related and unrelated diversification produces a different outcome whereby, related diversification is negatively and statistically significantly correlated with CSP. Unrelated diversification, on the other hand, shows a positive and statistically significant relationship. It means the relationship between unrelated diversification and CSP is more positive than the relationship between related diversification and CSP. The findings offer a unique insight into industrial diversification and CSP in Indonesia’s expanding manufacturing sector

The Relationship between Corporate Diversification, Corporate Governance and Corporate Social Performance in Indonesian Companies

The effect of corporate diversification on behaviour of business towards stakeholder demands and social concerns has been overlook, especially in product diversification both related and unrelated diversification. This study investigates the relationship between corporate diversification (CD) (i.e. related, unrelated and international diversification) and Corporate Social Performance (CSP) in Indonesian listed companies. It explores the moderating effect of corporate governance (CG) (e.g. independent commissioner and ownership concentration) on the correlation between corporate diversification and CSP. This study takes 203 listed companies from the Indonesian Stock Exchange as the sample. It applied company annual report, Indonesian Capital Market Directory and Osiris database as sourced of data. Moreover, content analysis based on 80 indicators of Global Report Initiative is used to measure CSP, while multiple regression with one-year lag dependent variables is used as the primary data analysis. The result of multi regression analysis shows that related and unrelated diversification produced different outcomes whereby related diversification is negatively correlated with CSP. Unrelated diversification, conversely, reveals a positive relationship with CSP. Moreover, unrelated diversification is more positively correlated to CSP than the related CD, while international diversification also has a positive relationship with CSP. Furthermore, an independent commissioner could strengthen the CD-CSP relationship with regards to unrelated and international diversification. Conversely, ownership concentration could weaken the CD and CSP relationship for related diversification. In conclusion, this study contributes to theoretical development (i.e. it explains the link between product diversification, international diversification and CSP in emerging economies setting. It extends previous studies by considering the role of CG as a moderator, and uses content analysis based on GRI indicators in measuring CSP). Additionally, it has managerial implications, including a manager needs to consider CD and carefully manage the demands of an extensive range of stakeholders to increase CSP. Second, in order to maximise the impact of corporate diversification strategy on CSP, a manager has to think sensibly, based on the CG dimensions in the company, such as the number of independent commissioners and ownership concentration. Third, this study provides input to managers who run their businesses in emerging economies that have some differences with developed economies, for instance local rules, regulations and governmental control. Fourth, it also has an impact on the economy of Indonesia. For example, the government should establish regulations suitable for several types of industry and encourage the listed companies to implement good CG. Finally, limitations and further research directions are discussed

Corporate Diversification and Corporate Social Performance in Indonesia

The relationship between corporate diversification and corporate social performance (CSP) is under-investigated, especially in emerging countries. This study examines the relationship between corporate diversification and CSP in Indonesia setting. Occurrence disclosure analysis has been applied to measure CSP based on 80 indicators of the Global Report Initiative (GRI). This study used multiple regressions with one-year lag dependent variables as the data analysis. The results show that the related diversification is negatively and significantly related to CSP, while, the unrelated diversification reveals a positive relationship with CSP. Besides that, unrelated diversification more correlated to CSP rather than related diversification. Furthermore, international diversification has a positive and significant relationship with CSP. Therefore, this study found that corporate diversification is a significant antecedent of CSP.JEL Classification: L25, M1

UPAYA PENINGKATAN INCOME GENERATING MELALUI PELATIHAN INOVASI PRODUK BAGI MASYARAKAT NELAYAN

Nagari Mandeh merupakan salah satu nagari yang sangat potensial di Sumatra Barat, baik dari sektor pariwisita maupun dari sektor perikanan. Salah satu hasil tangkapan yang paling dominan di Nagari Mandeh adalah ikan-ikan kecil (ikan teri). Bahkan, Nagari Mandeh dikenal sebagai salah satu sentra penghasil ikan teri dengan citra rasa yang khas di Sumatra Barat. Namun, kondisi sosial masyarakat Nagari Mandeh sungguh kontras dengan potensi dan sumber daya yang dimiliki. Masyarakat nelayan di Nagari Mandeh masih terbelenggu kemiskinan. Masyarakat nelayan Nagari Mandeh dicirikan dengan tebknologi penangkapan ikan yang rendah sehingga hasil tangkapan mereka juga rendah. Mayoritas para nelayan juga tidak mengenal teknologi pascapanen, yang dapat mengubah ikan dan hasil tangkapan laut lainnya menjadi produk olahan yang terjaga mutunya dengan usia produk yang lebih lama. Oleh karena itu, tujuan kegiatan pengabdian ini adalah untuk meningkatkan pengetahuan dan kreativitas serta inovasi masyarakat nelayan di Nagari Mandeh dalam melakukan usaha pengolahan hasil tangkapan laut menjadi aneka produk sebagai upaya untuk meningkatkan penghasilan keluarga (income generating). Pelaksanaan kegiatan dilakukan melalui metode ceramah dan tanya jawab serta demonstrasi. Setelah pelaksanaan pelatihan, terlihat peningkatan pengetahuan dan pemahaman serta keterampilan peserta tentang inovasi produk berbahan dasar hasil tangkapan laut

HUBUNGAN PENDIDIKAN ORANG TUA DENGAN SIKAP WIRAUSAHA MAHASISWA

The purpose of the study was to determine the relationship of parental education to student entrepreneurship attitudes. The research method uses associative quantitative approaches. Sampling technique with purposive sampling as many as 160 students who have attended Entrepreneurship courses. The results of the study using the Product Moment correlation test shows that there is a relationship between parental education with entrepreneurship attitudes in students of 0.643 with a significant level based on tcount = 10.55. Keywords: Entrepreneurial attitude student, Parents' Education, Entrepreneurship   Abstrak Tujuan penelitian untuk mengetahui hubungan pendidikan orang tua terhadap sikap berwirausaha mahasiswa. Metode penelitian menggunakan pendekatan kuantitatif asosiatif. Teknik pengambilan sampel dengan Purposive Sampling sebanyak 160 mahasiswa yang sudah mengikuti mata kuliah Kewirausahaan. Hasil penelitian dengan menggunakan uji korelasi Product Moment menunjukkan bahwa terdapat hubungan antara pendidikan orang tua dengan sikap berwirausaha pada mahasiswa sebesar 0,643 dengan tingkat seignifikan berdasarkan nilai thitung sebesar 10,55 Kata kunci: Sikap Berwirausaha Mahasiswa, Pendidikan Orang tua, Kewirausahaa

Corporate Diversification and Corporate Social Performance in Indonesia

Hubungan antara diversifikasi perusahaan dan kinerja sosial perusahaan (CSP) sedang diselidiki, terutama di negara-negara berkembang. Studi ini meneliti hubungan antara diversifikasi perusahaan dan CSP dalam pengaturan Indonesia. Analisis pengungkapan kejadian telah diterapkan untuk mengukur CSP berdasarkan 80 indikator Global Report Initiative (GRI). Penelitian ini menggunakan regresi berganda dengan variabel dependen lag satu tahun sebagai analisis data. Hasil penelitian menunjukkan bahwa diversifikasi yang terkait secara negatif dan signifikan terkait dengan CSP, sementara, diversifikasi yang tidak terkait mengungkapkan hubungan positif dengan CSP. Selain itu, diversifikasi yang tidak terkait lebih berkorelasi dengan CSP daripada diversifikasi terkait. Lebih jauh, diversifikasi internasional memiliki hubungan positif dan signifikan dengan CSP. Oleh karena itu, penelitian ini menemukan bahwa diversifikasi perusahaan merupakan anteseden CSP yang signifikan

THE EFFECT OF CORPORATE GOVERNANCE ON CAPITAL STRUCTURE IN COMPANIES LISTED ON THE IDX

This study aims to analyze the influence of corporate governance on the capital structure of companies listed on the IDX. Data collection is done by the method of documentation with secondary data. The population of this study are real estate and property companies listed on the IDX, as many as 59 real estate and property companies listed on the IDX from 2017-2021. Determination of the sample using purposive sampling with a final sample of 119 observations after outliers . Analysis of the research data used multiple linear regression analysis using the SPSS Version 23 program. The results showed that foreign ownership, institutional ownership and independent commissioners had a significant effect, while managerial ownership, shareholders and the number of commissioners had no significant effect on capital structure

THE EFFECT OF CORPORATE GOVERNANCE ON CAPITAL STRUCTURE IN COMPANIES LISTED ON THE IDX

This study aims to analyze the influence of corporate governance on the capital structure of companies listed on the IDX. Data collection is done by the method of documentation with secondary data. The population of this study are real estate and property companies listed on the IDX, as many as 59 real estate and property companies listed on the IDX from 2017-2021. Determination of the sample using purposive sampling with a final sample of 119 observations after outliers . Analysis of the research data used multiple linear regression analysis using the SPSS Version 23 program. The results showed that foreign ownership, institutional ownership and independent commissioners had a significant effect, while managerial ownership, shareholders and the number of commissioners had no significant effect on capital structure