Institutional Ownership and Corporate Social Performance: Empirical Evidence from Indonesian Companies

Prior research on the relationships of institutional ownership and corporate social responsibility has focused on North American (U.S. and Canada) and European companies. With the passage of Indonesian Law No. 40 in 2007, Indonesian companies are now obligated to conduct CSP. As these companies objected to the passage of this law, awareness of how CSP may benefit Indonesian companies in terms of its positive impact on institutional investors needs to be in- vestigated. Thus, this paper examines the relationships of IO and CSP for Indonesian compa- nies. Unfortunately, contrary to the results for North American and European companies, we found no relationships between institutional ownership and corporate social responsibility for Indonesian companies. This finding suggests that most institutional investors do not include CSP as part of their investment decisions. Keywords: Institutional ownership, Corporate social performance (CSP), corporate social responsibility (CSR), Indonesian companie

Management Control Systems and Contextual Variables in the Hospitality Industry

Purpose – The paper examined management control systems (MCS) in Indonesian hospitality sector. This study examines the impact of six contextual factors at one time to determine the importance of each factor on the design of MCS. Design/methodology/approach – The paper is based upon data collected through a survey sent to “star” hotels in Central Java, Indonesia. Using Chenhall (2003) design, a regression equation is run to examine the relationship between MCS and the contextual variables of environment, technology, structure, size, strategy and culture. Findings – The paper finds that higher levels of the contextual variables of technology, structure, and culture are related to more sophisticated MCS while size is related to more traditional MCS. Research limitations/implications –These findings are related to the hospitality industry in Indonesia. Future research could examine different settings (i.e. country, industry, etc) and investigate the effect of each contextual variable on the relationships between MCS and firm performance. Originality/value – The present study extends the scope of MCS system in accounting literature by testing Chenhall (2003) works on the relationship between contextual variables and MCS. It attempts to fill the gap in contingency-based studies that have previously focused on one aspect of contingency by considering six contextual factors. Furthermore, this paper also contributes to a fuller understanding of MCS practices in Indonesia and the hospitality industry and helps management in determining its most effective design. Keywords Hospitality management, Management Control Systems, Indonesia, Contextual Variable

Standalone CSR Reports: A Canadian Analysis

This research examines whether firms who issue these reports are really more sociallyresponsible or if they are merely trying to convince stakeholders that they are. We use theCSID index as an independent evaluation of firms’ level of CSR and find that firms that issuestandalone CSR reports every year do have significantly higher Total CSR, CSR Strengths andCSR Weaknesses than firms that never issue these reports. Additionally, we find that firms thatissue standalone CSR reports in some years have higher Total CSR and CSR Strengths scoresthan firms that never issue standalone CSR reports. Our results provide support for theexplanation that firms who issue standalone CSR reports do so as a signal of their superiorcommitment to social responsibility actions. We found minimal support for the argument thatfirms who issue standalone CSR reports are more profitable.Keywords: Corporate Social Responsibility, Sustainability Report

Corporate Social Performance, Financial Performance for Firms that Restate Earnings

This study examines corporate social performance (CSP) in firms that restate their financialstatements and, using a match pair design, compares their performance to firms that do notrestate their financial statements. Utilizing a randomized block design (two years prior to therestatement and two years after the restatement) for a sample of 44 U.S. firms, we found thatCSP Strengths, CSP Weaknesses, CSP People Strengths, and CSP People Weaknesses all increasedafter restatement though weaknesses increased at a greater rate than strengths. Additionally,using panel data and a match pair design we found, we found that restating firms hada greater increase in CSP Strengths, CSP Weaknesses, CSP Product Strengths, CSP PeopleStrengths and a greater decrease in Total CSP People than non-restating firms after the restatementperiod. When comparing the relationships between CSP and financial performance (FP),we found that the positive relationship between ROA and CSP Strengths is greater for restatementfirms than non-restating firms. In particular, we find that this positive relationship is aresult of the People dimension of CSP, in particular CSP People Strengths. Copyright © www.iiste.or

Institutional Ownership and Corporate Social Performance: Empirical Evidence from Indonesian Companies

Prior research on the relationships of institutional ownership and corporate social responsibilityhas focused on North American (U.S. and Canada) and European companies. With the passageof Indonesian Law No. 40 in 2007, Indonesian companies are now obligated to conduct CSP.As these companies objected to the passage of this law, awareness of how CSP may benefitIndonesian companies in terms of its positive impact on institutional investors needs to be investigated.Thus, this paper examines the relationships of IO and CSP for Indonesian companies.Unfortunately, contrary to the results for North American and European companies, wefound no relationships between institutional ownership and corporate social responsibility forIndonesian companies. This finding suggests that most institutional investors do not includeCSP as part of their investment decisions. Copyright © www.iiste.or

The Link between Corporate Social Performance and Financial Performance: Evidence from Indonesian Companies

This study examines the relationship of corporate social performance (CSP) to corporate financialperformance (CFP) to determine if CSP is related to firm performance. Additionally, itexamines whether firm size or industry affects the relationships between CSR and CSP. Thisstudy advances the literature as it examines this relationship for companies in a developingcountry, Indonesia, along with examining the impact of moderating variables on this relationship.Two models were developed: the first model was derived using slack resource theory andthe second model was developed using the good management theory. Through the examinationof 383 firms, the result of the study failed to find a significant relationship between CSP andCFP in either model. Further analysis, using the slack resource theory, did find that companysize had a significant positive moderating effect on the relationship between CSP and CFP.  Copyright © www.iiste.or

The link between corporate social performance and financial performance: Evidence from Indonesian companies

This study examines the relationship of corporate social performance (CSP) to corporate financial performance (CFP) to determine if CSP is related to firm performance. Additionally, it examines whether firm size or industry affects the relationships between CSR and CSP. This study advances the literature as it examines this relationship for companies in a developing country, Indonesia, along with examining the impact of moderating variables on this relationship. Two models were developed: the first model was derived using slack resource theory and the second model was developed using the good management theory. Through the examination of 383 firms, the result of the study failed to find a significant relationship between CSP and CFP in either model. Further analysis, using the slack resource theory, did find that company size had a significant positive moderating effect on the relationship between CSP and CFP

How are examinations inclusive for students with disabilities in higher education? A sociomaterial analysis

As a form of assessment, examinations are designed to determine whether students have met learning outcomes. However, students with disabilities report avoiding examinations, selecting units of study where the assessments align with their strengths. To ensure examinations do not contribute to the systematic exclusion of students with disabilities, it is important to explore their experiences. In this paper, we use a sociomaterial frame to analyse how examination arrangements construct inclusion in examinations. Interviews with 40 students were conducted across two universities. Inclusion or exclusion was variably constituted for students through emergent combinations of social and material arrangements. Covid-19 pandemic related social distancing related changes such as shifting examinations online, using technology, increasing time limits and moving to open-book examinations contributed to increased inclusion for most students, who were able to use familiar equipment in spaces they had adapted to their own needs. Staff acceptance and implementation of access requirements and assessment flexibility also contributed. While the attitudes and actions of staff involved in examinations can facilitate inclusion, reducing the need for adjustments through assessment design is important. This requires consideration of how time, technology, equipment and materials contribute to inclusion or exclusion, which may have benefits for many students

Are CSR activities associated with shareholder voting in director elections and say-on-pay votes?

When making investment decisions, many investors now regularly consider a company’s CSR activities along with traditional financial performance measures (Elliott et al., 2014). Our study considers whether shareholders may also consider CSR activities when voting in director elections and say-on-pay votes. We find that CSR performance is associated with shareholder support in both director elections and say-on-pay votes. In particular, we find higher support for both director elections and executive compensation when there are more CSR strengths. Additionally, we find that the social strength aspect of CSR is the most important component in the relationships between CSR and director elections and that the environmental strengths aspect is the most important component in the relationship between CSR and executive compensation. Our results suggest that shareholders may value certain types of CSR and are more supportive of boards and management when CSR performance is stronger