Purpose – This study aims to examine the effects of corporate ownership (government-linked invest... more Purpose – This study aims to examine the effects of corporate ownership (government-linked investment companies, GLICs), linearity of GLICs, board ownership and linearity of board ownership on company performance. Design/methodology/approach – Using panel data from companies that are listed on the Malaysian Stock Exchange during the period of 2000 to 2009, this study uses weighted least square models. Findings – The results show that GLICs ownership is positively and significantly related to company performance, while board ownership is negatively and significantly related to company performance. These findings suggest that GLICs ownership improves company performance, while board ownership destroys company performance. The results also show that while GLICs ownership has an inverted U-shaped relationship with company performance, board ownership has a U-shaped relationship with company performance. Research limitations/implications – The theoretical implication of this study is tha...
Issues In Social And Environmental Accounting, 2014
The objective of this study is to investigate the CSR (Corporate Social Responsibility) practices... more The objective of this study is to investigate the CSR (Corporate Social Responsibility) practices after the issuance of the government regulation as the implementation guideline of the CSR as stipulated in the law no.40/2007 through business players’ interviews. Using the semi structured interviews with Indonesian executives/informants of Indonesian companies, this study found that CSR practices have been viewed as philanthropic activities of companies with all the consequences that follow: shareholder as the most important stakeholder, reporting CSR practice as means to have public image and no need to have any standard to prepare CSR practice reporting. Given the findings, there is a need to redefine CSR based on the intention to maintain good relationship with stakeholders and to have the integrated management system to help management well interact with them in market and non- market mechanism.
This study aims to explore the specific CSR practices i.e. the dimension of environment from an I... more This study aims to explore the specific CSR practices i.e. the dimension of environment from an Islamic perspective. The three key principles in Islam, which comprise of vicegerent (khalifah), divine accountability, and obligation to enjoin good and forbid evil guide the understanding of business organizations' engagement to care for the natural environment. Annual reports (2007-2011) of six full-fledged Islamic banks in Malaysia and Indonesia have been analysed via content analysis method. The environmental information reported has been collected using a combined index developed from the AAOIFI's (2005) guidelines and significant prevailing literature. It is found that despite the indication of preserving the environment through banks' business activities, the environmental reporting practices of all the banks in both countries are yet to improve.The study offers insights pertaining to the influence of religion i.e. Islam on the extent of environmental reporting practice.
ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and for... more ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and formulate a conceptual framework of corporate social responsibility (CSR) based on Islamic values and beliefs. An Islamic CSR (i-CSR) framework is vital in guiding the CSR strategies, policies and practices of Islamic institutions. Design/Methodology/Approach-This notion of CSR in Islam is proposed by incorporating the concept of tawhid and integrating the principles of Maqasid Syariah (Islamic Law) and Maslahah (public good) which completes the mission of mankind on earth i.e. the absolute submission to his obligations in the performance of ibadah, dakwah and as a khalifah. Practical Implications-The establishment of the framework provides a holistic guidance based on Islamic beliefs, values and concepts which should be integrated with and embedded as part of the overall governance and accountability of institutions. This model is practical not only for Islamic organizations and institutions but also for other entities that subscribe to the beliefs that the function of business is a manifestation of the act of devotion to God, i.e. promoting good deeds. Originality/Value-A comprehensive model of Islamic CSR (i-CSR), which includes the elements of governance, accountability, prioritisation of activities and practices and disclosures. Paper type-Conceptual paper
ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from ... more ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from an Islamic perspective. Three major principles in Islam, which include vicegerent (khalifah), divine accountability, and obligation to enjoin good and forbid evil guide the understanding about the responsibilities of business organizations to their employees. Using content analysis, annual reports (2007-2011) of six full-fledged Islamic banks in Malaysia and Indonesia have been analysed. The data has been collected based on the AAOIFI's (2005) guidelines and disclosure index of some prevailing literature. Generally, the Malaysian banks disclosed more information, but the trend in both countries is rather similar. Generally, all banks have treated their employees justly in creating a positive workplace environment hence comply with the Islamic laws and principles.
This study addresses the following research questions: Are there any significant social and envir... more This study addresses the following research questions: Are there any significant social and environmental performance differences between Indonesian companies and MNCs operating in Indonesia? Do the levels of social and environmental performances have positive association with financial performance? The findings of the study indicate that in terms of social variable, the performance of Indonesian companies and MNCs is the same, while in terms of environmental perspectives, the performance of MNCs i.s better than the one of Indonesia companies. In Indonesian companies, corporate performance and corporate social and environmental performances are not related, while in MNCs the relation is partially supported for social perspective and mostly supported for environmental perspective.
Purpose – This study aims to examine the effects of corporate ownership (government-linked invest... more Purpose – This study aims to examine the effects of corporate ownership (government-linked investment companies, GLICs), linearity of GLICs, board ownership and linearity of board ownership on company performance. Design/methodology/approach – Using panel data from companies that are listed on the Malaysian Stock Exchange during the period of 2000 to 2009, this study uses weighted least square models. Findings – The results show that GLICs ownership is positively and significantly related to company performance, while board ownership is negatively and significantly related to company performance. These findings suggest that GLICs ownership improves company performance, while board ownership destroys company performance. The results also show that while GLICs ownership has an inverted U-shaped relationship with company performance, board ownership has a U-shaped relationship with company performance. Research limitations/implications – The theoretical implication of this study is that agency problem decreases in companies with low and high levels of board ownership concentration, while it increases in companies with middle level of board ownership concentration. Furthermore, agency cost decreases in companies with a certain level of GLICs ownership concentration as the government’s New Economic Model (NEM) expects. However, agency cost increases in companies after a certain level of GLICs ownership concentration. Practical implications – In practical perspectives, this study provides evidence to policy makers that the government’s proposal to reduce GLICs’ investments in Malaysia and diversify them aboard as mentioned in NEM is supported because the decrease in GLICs stakes in certain level may increase company performance. On the other hand, if the policy of the government is to increase GLICs stakes, the company performance may decrease after a certain level of ownership concentration. This study also provides evidence that investors can invest in companies with low and high board ownership concentration. Furthermore, the NEM policy gives investors an opportunity to invest in the companies with GLICs. Reducing GLICs stakes in the Malaysian market and putting them in the international markets, as mentioned in the Malaysian Government’s NEM policy, will create more opportunities for international investors to invest their fund in the Malaysian market. Thus, the emerging markets exist. In addition, the NEM policy also encourages institutional ownerships like domestic and foreign to increase their stakes instead of GLICs in the Malaysian market. Originality/value – So far, most of the previous studies on GLICs and board ownerships in the Malaysian setting focused on the relationship of the ownership structure with company performance. However, no study has been done to examine the linearity effects of GLICs and board ownerships on company performance. The study is very important to perform to provide the policy makers and investors with clear guidance before their decisions.
Management and Technology in Knowledge, Service, Tourism & Hospitality, 2014
ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from ... more ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from an Islamic perspective. Three major principles in Islam, which include vicegerent (khalifah), divine accountability, and obligation to enjoin good and forbid evil guide the understanding about the responsibilities of business organizations to their employees. Using content analysis, annual reports (2007-2011) of six full-fledged Islamic banks in Malaysia and Indonesia have been analysed. The data has been collected based on the AAOIFI's (2005) guidelines and disclosure index of some prevailing literature. Generally, the Malaysian banks disclosed more information, but the trend in both countries is rather similar. Generally, all banks have treated their employees justly in creating a positive workplace environment hence comply with the Islamic laws and principles.
ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and for... more ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and formulate a conceptual framework of corporate social responsibility (CSR) based on Islamic values and beliefs. An Islamic CSR (i-CSR) framework is vital in guiding the CSR strategies, policies and practices of Islamic institutions. Design/Methodology/Approach-This notion of CSR in Islam is proposed by incorporating the concept of tawhid and integrating the principles of Maqasid Syariah (Islamic Law) and Maslahah (public good) which completes the mission of mankind on earth i.e. the absolute submission to his obligations in the performance of ibadah, dakwah and as a khalifah. Practical Implications-The establishment of the framework provides a holistic guidance based on Islamic beliefs, values and concepts which should be integrated with and embedded as part of the overall governance and accountability of institutions. This model is practical not only for Islamic organizations and institutions but also for other entities that subscribe to the beliefs that the function of business is a manifestation of the act of devotion to God, i.e. promoting good deeds. Originality/Value-A comprehensive model of Islamic CSR (i-CSR), which includes the elements of governance, accountability, prioritisation of activities and practices and disclosures. Paper type-Conceptual paper
International Journal of Business Governance and Ethics, 2014
There is a growing global interest in social responsibility and sustainability across all sectors... more There is a growing global interest in social responsibility and sustainability across all sectors. Other than economic performance, stakeholders are now also concerned about the social and environmental impacts of corporations. Additionally, stakeholders are obtaining a higher salience level and expect organisations to operate sustainably. The banking sector has not been an exception, as banks can have significant impact on their customers, employees, and society in various ways. Given the intertwined links of Islam and ethical principles, it is expected that Islamic banks will show a high level of commitment towards social responsibility (SR) and ethical practices. The current study investigates this issue by examining the annual reports of three fully-fledged Islamic commercial banks in Indonesia over the period of 2007 to 2011. It was found that only two of the investigated banks had continuous improvement in their SR disclosure. Additionally, it was revealed that the highest disclosures have been for 'corporate vision' and 'board of directors and top management', while the lowest disclosures were evident for 'environment' and 'product, services and fair dealing with supply chain'.
Handbook of Business Practices and Growth in Emerging Markets, 2009
The objectives of this study are to analyze the difference of corporate social performance betwee... more The objectives of this study are to analyze the difference of corporate social performance between State-owned and private companies in Indonesia, and also to analyze the correlation between the corporate social performance (CSP) and the corporate financial performance by using company size, and institutional ownership as control variables. The population of this study is Indonesian state owned and private companies in the year of 2001-2004. Purposive sampling was used in this study, and final samples are 461 companies. The CSP or CSR (Corporate social responsibility) score is measured by content analysis of corporate annual report using seven item developed by Michael Research Jantzi Research Associate, Inc. The data is tested by independent t-test to determine the mean difference and by using partial correlation test to know the correlation between the corporate social performance and financial performance. The results of this study are that there is no significant difference mean of corporate social performance between state-owned and private owned companies in Indonesia. In addition, the correlation test indicates that there is no association between corporation social performance and financial performance both in SOCs and POCs.
This paper examines management control systems (MCS) in the Indonesian hospitality sector. More s... more This paper examines management control systems (MCS) in the Indonesian hospitality sector. More specifically, we examined the relationships between MCS and the contextual variables of environment, technology, structure, size, strategy and culture. We found that higher levels of technology, structure, and culture were related to more sophisticated MCS, while size was related to more traditional MCS. The present study is an extension of previous contingency-based studies that focused on just one aspect of contingency, instead of considering six contextual factors that may affect MCS. Furthermore, this paper contributes to a fuller understanding of MCS practices in Indonesia and the hospitality industry, and helps management determine the most effective MCS design.
The aim of this study is to examine the effect of good corporate governance mechanism to stock pe... more The aim of this study is to examine the effect of good corporate governance mechanism to stock performance through sustainability report disclosure as mediation. Good corporate governance mechanism used in this case is commissioner board's size, the proportion of independent commissioners, audit committee's size, and managerial ownership, whereas stock performance measured in this case is stock return. Using a sample 113 companies all sector listed in Indonesia Stock Exchange which publish sustainability report during 2014-2016. This study were using simple and multiple linear regression analysed to determine indirect effect through path diagram. Based on the result of the first hypothesis testing of GCG mechanism none of which have significant effect on SR disclosure, the second hypothesis is only the proportion of independent commissioner and audit committee's size of GCG mechanism which have positive significant effect on stock performance, the third hypothesis of SR disclosure has no significant effect on stock performance and the fourth hypothesis explains that SR disclosure is not exactly a mediating variable.
The objectives of this study is to investigate whether business environment, business strategy, f... more The objectives of this study is to investigate whether business environment, business strategy, formalization, decentralization, reliance on combination of belief & boundary system, reliance on combination of diagnostic & interactive control system, reliance on interactive control system moderate the relationship between CSR and CFP under the slack resource and good management theories. 220 respondents from manufacturing companies listed on the Jakarta Stock Exchange were selected and two regression models were developed to examine the relationship between the related variables. The findings show that business environment has moderated the CSR-CFP link under good management theory, decentralization has moderated the CSR-CFP link under slack resource theory, and reliance on combination of diagnostic and interactive control system has moderated the CSR and CFP link based on slack resource theory.
Issues In Social And Environmental Accounting, 2007
This study examines the relationship of corporate social performance (CSP) to corporate financial... more 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.
Corporate social responsibility has become an important aspect of business society and there is a... more Corporate social responsibility has become an important aspect of business society and there is a growing interest in companies to report their social and environmental initiatives. While the tenets of CSR have a lot in common with Islamic moral law (Shari’ah), little is known about the CSR disclosure of Islamic banks. To address this gap, the current study provides a cross-cultural perspective on the social responsibility disclosure in Islamic banks across two countries, namely Indonesia and Malaysia. Using the content analysis of the annual reports for three full-fledged local Islamic banks in Indonesia and three Islamic banks in Malaysia for
the period of 2007 to 2011, this study revealed that an overall growth in the corporate social responsibility disclosure of Islamic banks both in Malaysia and Indonesia. More specifically, it was found that the workplace and community dimensions were the most highly disclosed areas by the Islamic banks in both countries. By discussing the findings according to the
stages of growth model for corporate social responsibility, we suggest the Islamic banks to enhance their responsiveness and transform from CSR reporters of social responsibility
respondens.
Purpose – This study aims to examine the effects of corporate ownership (government-linked invest... more Purpose – This study aims to examine the effects of corporate ownership (government-linked investment companies, GLICs), linearity of GLICs, board ownership and linearity of board ownership on company performance. Design/methodology/approach – Using panel data from companies that are listed on the Malaysian Stock Exchange during the period of 2000 to 2009, this study uses weighted least square models. Findings – The results show that GLICs ownership is positively and significantly related to company performance, while board ownership is negatively and significantly related to company performance. These findings suggest that GLICs ownership improves company performance, while board ownership destroys company performance. The results also show that while GLICs ownership has an inverted U-shaped relationship with company performance, board ownership has a U-shaped relationship with company performance. Research limitations/implications – The theoretical implication of this study is tha...
Issues In Social And Environmental Accounting, 2014
The objective of this study is to investigate the CSR (Corporate Social Responsibility) practices... more The objective of this study is to investigate the CSR (Corporate Social Responsibility) practices after the issuance of the government regulation as the implementation guideline of the CSR as stipulated in the law no.40/2007 through business players’ interviews. Using the semi structured interviews with Indonesian executives/informants of Indonesian companies, this study found that CSR practices have been viewed as philanthropic activities of companies with all the consequences that follow: shareholder as the most important stakeholder, reporting CSR practice as means to have public image and no need to have any standard to prepare CSR practice reporting. Given the findings, there is a need to redefine CSR based on the intention to maintain good relationship with stakeholders and to have the integrated management system to help management well interact with them in market and non- market mechanism.
This study aims to explore the specific CSR practices i.e. the dimension of environment from an I... more This study aims to explore the specific CSR practices i.e. the dimension of environment from an Islamic perspective. The three key principles in Islam, which comprise of vicegerent (khalifah), divine accountability, and obligation to enjoin good and forbid evil guide the understanding of business organizations' engagement to care for the natural environment. Annual reports (2007-2011) of six full-fledged Islamic banks in Malaysia and Indonesia have been analysed via content analysis method. The environmental information reported has been collected using a combined index developed from the AAOIFI's (2005) guidelines and significant prevailing literature. It is found that despite the indication of preserving the environment through banks' business activities, the environmental reporting practices of all the banks in both countries are yet to improve.The study offers insights pertaining to the influence of religion i.e. Islam on the extent of environmental reporting practice.
ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and for... more ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and formulate a conceptual framework of corporate social responsibility (CSR) based on Islamic values and beliefs. An Islamic CSR (i-CSR) framework is vital in guiding the CSR strategies, policies and practices of Islamic institutions. Design/Methodology/Approach-This notion of CSR in Islam is proposed by incorporating the concept of tawhid and integrating the principles of Maqasid Syariah (Islamic Law) and Maslahah (public good) which completes the mission of mankind on earth i.e. the absolute submission to his obligations in the performance of ibadah, dakwah and as a khalifah. Practical Implications-The establishment of the framework provides a holistic guidance based on Islamic beliefs, values and concepts which should be integrated with and embedded as part of the overall governance and accountability of institutions. This model is practical not only for Islamic organizations and institutions but also for other entities that subscribe to the beliefs that the function of business is a manifestation of the act of devotion to God, i.e. promoting good deeds. Originality/Value-A comprehensive model of Islamic CSR (i-CSR), which includes the elements of governance, accountability, prioritisation of activities and practices and disclosures. Paper type-Conceptual paper
ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from ... more ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from an Islamic perspective. Three major principles in Islam, which include vicegerent (khalifah), divine accountability, and obligation to enjoin good and forbid evil guide the understanding about the responsibilities of business organizations to their employees. Using content analysis, annual reports (2007-2011) of six full-fledged Islamic banks in Malaysia and Indonesia have been analysed. The data has been collected based on the AAOIFI's (2005) guidelines and disclosure index of some prevailing literature. Generally, the Malaysian banks disclosed more information, but the trend in both countries is rather similar. Generally, all banks have treated their employees justly in creating a positive workplace environment hence comply with the Islamic laws and principles.
This study addresses the following research questions: Are there any significant social and envir... more This study addresses the following research questions: Are there any significant social and environmental performance differences between Indonesian companies and MNCs operating in Indonesia? Do the levels of social and environmental performances have positive association with financial performance? The findings of the study indicate that in terms of social variable, the performance of Indonesian companies and MNCs is the same, while in terms of environmental perspectives, the performance of MNCs i.s better than the one of Indonesia companies. In Indonesian companies, corporate performance and corporate social and environmental performances are not related, while in MNCs the relation is partially supported for social perspective and mostly supported for environmental perspective.
Purpose – This study aims to examine the effects of corporate ownership (government-linked invest... more Purpose – This study aims to examine the effects of corporate ownership (government-linked investment companies, GLICs), linearity of GLICs, board ownership and linearity of board ownership on company performance. Design/methodology/approach – Using panel data from companies that are listed on the Malaysian Stock Exchange during the period of 2000 to 2009, this study uses weighted least square models. Findings – The results show that GLICs ownership is positively and significantly related to company performance, while board ownership is negatively and significantly related to company performance. These findings suggest that GLICs ownership improves company performance, while board ownership destroys company performance. The results also show that while GLICs ownership has an inverted U-shaped relationship with company performance, board ownership has a U-shaped relationship with company performance. Research limitations/implications – The theoretical implication of this study is that agency problem decreases in companies with low and high levels of board ownership concentration, while it increases in companies with middle level of board ownership concentration. Furthermore, agency cost decreases in companies with a certain level of GLICs ownership concentration as the government’s New Economic Model (NEM) expects. However, agency cost increases in companies after a certain level of GLICs ownership concentration. Practical implications – In practical perspectives, this study provides evidence to policy makers that the government’s proposal to reduce GLICs’ investments in Malaysia and diversify them aboard as mentioned in NEM is supported because the decrease in GLICs stakes in certain level may increase company performance. On the other hand, if the policy of the government is to increase GLICs stakes, the company performance may decrease after a certain level of ownership concentration. This study also provides evidence that investors can invest in companies with low and high board ownership concentration. Furthermore, the NEM policy gives investors an opportunity to invest in the companies with GLICs. Reducing GLICs stakes in the Malaysian market and putting them in the international markets, as mentioned in the Malaysian Government’s NEM policy, will create more opportunities for international investors to invest their fund in the Malaysian market. Thus, the emerging markets exist. In addition, the NEM policy also encourages institutional ownerships like domestic and foreign to increase their stakes instead of GLICs in the Malaysian market. Originality/value – So far, most of the previous studies on GLICs and board ownerships in the Malaysian setting focused on the relationship of the ownership structure with company performance. However, no study has been done to examine the linearity effects of GLICs and board ownerships on company performance. The study is very important to perform to provide the policy makers and investors with clear guidance before their decisions.
Management and Technology in Knowledge, Service, Tourism & Hospitality, 2014
ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from ... more ABSTRACT This study seeks to investigate specific CSR practices i.e. dimension of workplace from an Islamic perspective. Three major principles in Islam, which include vicegerent (khalifah), divine accountability, and obligation to enjoin good and forbid evil guide the understanding about the responsibilities of business organizations to their employees. Using content analysis, annual reports (2007-2011) of six full-fledged Islamic banks in Malaysia and Indonesia have been analysed. The data has been collected based on the AAOIFI's (2005) guidelines and disclosure index of some prevailing literature. Generally, the Malaysian banks disclosed more information, but the trend in both countries is rather similar. Generally, all banks have treated their employees justly in creating a positive workplace environment hence comply with the Islamic laws and principles.
ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and for... more ABSTRACT Purpose-The objective of this paper is to explore the Islamic principles and law and formulate a conceptual framework of corporate social responsibility (CSR) based on Islamic values and beliefs. An Islamic CSR (i-CSR) framework is vital in guiding the CSR strategies, policies and practices of Islamic institutions. Design/Methodology/Approach-This notion of CSR in Islam is proposed by incorporating the concept of tawhid and integrating the principles of Maqasid Syariah (Islamic Law) and Maslahah (public good) which completes the mission of mankind on earth i.e. the absolute submission to his obligations in the performance of ibadah, dakwah and as a khalifah. Practical Implications-The establishment of the framework provides a holistic guidance based on Islamic beliefs, values and concepts which should be integrated with and embedded as part of the overall governance and accountability of institutions. This model is practical not only for Islamic organizations and institutions but also for other entities that subscribe to the beliefs that the function of business is a manifestation of the act of devotion to God, i.e. promoting good deeds. Originality/Value-A comprehensive model of Islamic CSR (i-CSR), which includes the elements of governance, accountability, prioritisation of activities and practices and disclosures. Paper type-Conceptual paper
International Journal of Business Governance and Ethics, 2014
There is a growing global interest in social responsibility and sustainability across all sectors... more There is a growing global interest in social responsibility and sustainability across all sectors. Other than economic performance, stakeholders are now also concerned about the social and environmental impacts of corporations. Additionally, stakeholders are obtaining a higher salience level and expect organisations to operate sustainably. The banking sector has not been an exception, as banks can have significant impact on their customers, employees, and society in various ways. Given the intertwined links of Islam and ethical principles, it is expected that Islamic banks will show a high level of commitment towards social responsibility (SR) and ethical practices. The current study investigates this issue by examining the annual reports of three fully-fledged Islamic commercial banks in Indonesia over the period of 2007 to 2011. It was found that only two of the investigated banks had continuous improvement in their SR disclosure. Additionally, it was revealed that the highest disclosures have been for 'corporate vision' and 'board of directors and top management', while the lowest disclosures were evident for 'environment' and 'product, services and fair dealing with supply chain'.
Handbook of Business Practices and Growth in Emerging Markets, 2009
The objectives of this study are to analyze the difference of corporate social performance betwee... more The objectives of this study are to analyze the difference of corporate social performance between State-owned and private companies in Indonesia, and also to analyze the correlation between the corporate social performance (CSP) and the corporate financial performance by using company size, and institutional ownership as control variables. The population of this study is Indonesian state owned and private companies in the year of 2001-2004. Purposive sampling was used in this study, and final samples are 461 companies. The CSP or CSR (Corporate social responsibility) score is measured by content analysis of corporate annual report using seven item developed by Michael Research Jantzi Research Associate, Inc. The data is tested by independent t-test to determine the mean difference and by using partial correlation test to know the correlation between the corporate social performance and financial performance. The results of this study are that there is no significant difference mean of corporate social performance between state-owned and private owned companies in Indonesia. In addition, the correlation test indicates that there is no association between corporation social performance and financial performance both in SOCs and POCs.
This paper examines management control systems (MCS) in the Indonesian hospitality sector. More s... more This paper examines management control systems (MCS) in the Indonesian hospitality sector. More specifically, we examined the relationships between MCS and the contextual variables of environment, technology, structure, size, strategy and culture. We found that higher levels of technology, structure, and culture were related to more sophisticated MCS, while size was related to more traditional MCS. The present study is an extension of previous contingency-based studies that focused on just one aspect of contingency, instead of considering six contextual factors that may affect MCS. Furthermore, this paper contributes to a fuller understanding of MCS practices in Indonesia and the hospitality industry, and helps management determine the most effective MCS design.
The aim of this study is to examine the effect of good corporate governance mechanism to stock pe... more The aim of this study is to examine the effect of good corporate governance mechanism to stock performance through sustainability report disclosure as mediation. Good corporate governance mechanism used in this case is commissioner board's size, the proportion of independent commissioners, audit committee's size, and managerial ownership, whereas stock performance measured in this case is stock return. Using a sample 113 companies all sector listed in Indonesia Stock Exchange which publish sustainability report during 2014-2016. This study were using simple and multiple linear regression analysed to determine indirect effect through path diagram. Based on the result of the first hypothesis testing of GCG mechanism none of which have significant effect on SR disclosure, the second hypothesis is only the proportion of independent commissioner and audit committee's size of GCG mechanism which have positive significant effect on stock performance, the third hypothesis of SR disclosure has no significant effect on stock performance and the fourth hypothesis explains that SR disclosure is not exactly a mediating variable.
The objectives of this study is to investigate whether business environment, business strategy, f... more The objectives of this study is to investigate whether business environment, business strategy, formalization, decentralization, reliance on combination of belief & boundary system, reliance on combination of diagnostic & interactive control system, reliance on interactive control system moderate the relationship between CSR and CFP under the slack resource and good management theories. 220 respondents from manufacturing companies listed on the Jakarta Stock Exchange were selected and two regression models were developed to examine the relationship between the related variables. The findings show that business environment has moderated the CSR-CFP link under good management theory, decentralization has moderated the CSR-CFP link under slack resource theory, and reliance on combination of diagnostic and interactive control system has moderated the CSR and CFP link based on slack resource theory.
Issues In Social And Environmental Accounting, 2007
This study examines the relationship of corporate social performance (CSP) to corporate financial... more 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.
Corporate social responsibility has become an important aspect of business society and there is a... more Corporate social responsibility has become an important aspect of business society and there is a growing interest in companies to report their social and environmental initiatives. While the tenets of CSR have a lot in common with Islamic moral law (Shari’ah), little is known about the CSR disclosure of Islamic banks. To address this gap, the current study provides a cross-cultural perspective on the social responsibility disclosure in Islamic banks across two countries, namely Indonesia and Malaysia. Using the content analysis of the annual reports for three full-fledged local Islamic banks in Indonesia and three Islamic banks in Malaysia for
the period of 2007 to 2011, this study revealed that an overall growth in the corporate social responsibility disclosure of Islamic banks both in Malaysia and Indonesia. More specifically, it was found that the workplace and community dimensions were the most highly disclosed areas by the Islamic banks in both countries. By discussing the findings according to the
stages of growth model for corporate social responsibility, we suggest the Islamic banks to enhance their responsiveness and transform from CSR reporters of social responsibility
respondens.
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Papers by Hasan Fauzi
the period of 2007 to 2011, this study revealed that an overall growth in the corporate social responsibility disclosure of Islamic banks both in Malaysia and Indonesia. More specifically, it was found that the workplace and community dimensions were the most highly disclosed areas by the Islamic banks in both countries. By discussing the findings according to the
stages of growth model for corporate social responsibility, we suggest the Islamic banks to enhance their responsiveness and transform from CSR reporters of social responsibility
respondens.
the period of 2007 to 2011, this study revealed that an overall growth in the corporate social responsibility disclosure of Islamic banks both in Malaysia and Indonesia. More specifically, it was found that the workplace and community dimensions were the most highly disclosed areas by the Islamic banks in both countries. By discussing the findings according to the
stages of growth model for corporate social responsibility, we suggest the Islamic banks to enhance their responsiveness and transform from CSR reporters of social responsibility
respondens.