CSR Reporting Practices, CSR Disclosure, and The Cost of Equity Capital

Rivanti Santiara Dewi

2018

Abstract

The trend regarding the adoption of corporate social reporting (CSR) not only applies to developed countries but also to developing countries. In developing countries, there has been an increase in both CSR disclosure and the quality of CSR reporting. The aim of this paper is to investigate the use of CSR reporting practices in relation to whether they provide greater disclosure of CSR, in addition to determining the effect of CSR disclosure on the cost of equity capital. CSR practices utilize standalone CSR reports, the Global Reporting Initiative (GRI) framework, and CSR information assurance. Several criteria were used for the research sample: (1) manufacturing companies listed on the Indonesian Stock Exchange between 2013 and 2015; (2) companies had published annual reports or sustainability reports; and (3) data for the variables used was available. The data analysis technique utilized in this research was PLS regression, using WarpPls. The results show that companies using CSR reporting practices (i.e. standalone reports and GRI adoption) disclose broader CSR information, and companies that provide an assurance of CSR information do not disclose sufficient CSR information. Further, CSR disclosure affects the cost of equity capital in that there is a negative relationship between CSR disclosure and the cost of equity capital.

Paper Citation

in Harvard Style

Dewi R. (2018). CSR Reporting Practices, CSR Disclosure, and The Cost of Equity Capital.In Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium, ISBN 978-989-758-339-1, pages 492-498. DOI: 10.5220/0007017304920498

in Bibtex Style

@conference{jcae symposium18,
author={Rivanti Santiara Dewi},
title={CSR Reporting Practices, CSR Disclosure, and The Cost of Equity Capital},
booktitle={Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,},
year={2018},
pages={492-498},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007017304920498},
isbn={978-989-758-339-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,
TI - CSR Reporting Practices, CSR Disclosure, and The Cost of Equity Capital
SN - 978-989-758-339-1
AU - Dewi R.
PY - 2018
SP - 492
EP - 498
DO - 10.5220/0007017304920498