Institutional Ownership and Social Responsibility Disclosure: Evidence from Mining and Energy Companies

Gea Ovelliany  Tiaspupa; Barnabas Tridig Silaban

doi:10.33395/owner.v9i2.2720

Authors

Gea Ovelliany Tiaspupa Universitas Kristen Maranatha
Barnabas Tridig Silaban Universitas Kristen Maranatha

DOI:

10.33395/owner.v9i2.2720

Keywords:

disclosure, environment, institutional proprietorship, society

Abstract

This investigation aims to verify the effect of institutional ownership on social responsibility disclosure (SRD) based on Global Reporting Initiative (GRI) standards, with two control variables: financial leverage (FL) and profitability (PROF). The population consists of 50 mining and energy corporations in the Indonesian Capital Market from 2017 to 2022. Moreover, this investigation employs the Slovin formula to grab 33 representative companies from the total population, which are chosen randomly. A regression model is then used to analyze the secondary data. As a result, this investigation reveals a positive association between institutional ownership and SRD. Similarly, this propensity is obtainable when examining the effect of two control variables, FL and PROF, on SRD. Ultimately, this research offers practical examples for these companies to take responsibility for the environment and the surrounding society at their locations.

Downloads

Download data is not yet available.

Plum-X Analityc

References

Ahirwal, J., & Pandey, V. C. (2024). Restoration of mine-degraded land for sustainable environmental development. Restoration Ecology, 29(4), e13268. https://doi.org/10.1111/rec.13268

Ahmed, R. I., Zhao, G., Ahmad, N., & Habiba, U. (2022). A nexus between corporate social responsibility disclosure and its determinants in energy enterprises. Journal of Business and Industrial Marketing, 37(6), 1255–1268. https://doi.org/10.1108/JBIM-07-2020-0359

Al Fadli, A., Sands, J., Jones, G., Beattie, C., & Pensiero, D. (2022). The influence of ownership structure on the extent of CSR reporting: An emerging market study. Business and Society Review, 127(3), 725–754. https://doi.org/10.1111/basr.12286

Ali, H., Yin, J., Manzoor, F., & An, M. (2023). The impact of corporate social responsibility on firm reputation and organizational citizenship behavior: The mediation of organic organizational cultures. Frontiers in Psychology, 13, 1100448. https://doi.org/10.3389/fpsyg.2022.1100448

Ariana, D., Sanusi, F., & Ichwanudin, W. (2023). Institutional ownership affects company values with CSR and DER as intervening variables. Journal of Applied Business, Taxation, and Economics Research, 3(1), 54–69. https://doi.org/10.54408/jabter.v3i1.226

Awa, H. O., Etim, W., & Ogbonda, E. (2024). Stakeholders, stakeholder theory and corporate social responsibility (CSR). International Journal of Corporate Social Responsibility, 9, 11. https://doi.org/10.1186/s40991-024-00094-y

Azwari, F., & Rajab, A. (2021). The impact of coal mining on social and economic societies in Loa Duri Ulu Village, Loa Janan District, Kutai Kartanegara Regency. Buletin Poltanesa, 22(1), 116–121. https://doi.org/10.51967/tanesa.v22i1.478

Bataineh, H., Alkurdi, A., Abuhommous, A. A., & Abdel Latif, M. (2023). The role of ownership structure, board, and audit committee in corporate social responsibility disclosure: Jordanian evidence. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-03-2023-0102

Cheng, X., Wang, H. (Helen), & Wang, X. (2022). Common institutional ownership and corporate social responsibility. Journal of Banking and Finance, 136, 106218. https://doi.org/10.1016/j.jbankfin.2021.106218

Faisal, A., Junus, A., & Darmawati, D. (2021). Market response to the corporate social responsibility disclosure during the COVID-19 pandemic. International Journal of Scientific and Management Research, 4(7), 157–169. https://doi.org/10.37502/ijsmr.2021.4714

Febryanti, I. G. Della, & Suhendah, R. (2024). The effect of institutional ownership, foreign ownership, leverage, and audit firm size on CSR disclosure. International Journal of Application on Economics and Business, 2(3), 318–329. https://doi.org/10.24912/ijaeb.v2i3.318-330

Ghozali, I. (2021). Multivariate Analysis Application by IBM SPSS 26 (10th ed.). Badan Penerbit Universitas Diponegoro.

Havlinova, A., & Kukacka, J. (2023). Corporate social responsibility and stock prices after the financial crisis: The role of strategic CSR activities. Journal of Business Ethics, 182, 223–242. https://doi.org/10.1007/s10551-021-04935-9

Hudzafidah, K., Dhany, U. R., Rahmansyah, A. I., & Bahri, M. S. (2023). Effect of profitability on social responsibility in Indonesia: Environmental performance as a moderator. Wiga: Jurnal Penelitian Ilmu Ekonomi, 13(1), 103–113. https://doi.org/10.30741/wiga.v13i1.974

Kholifah, S. N., & Hadi, N. (2023). Corporate social responsibility, environmental accounting, management system, and capabilities. JEBISKU: Jurnal Ekonomi & Bisnis Islam IAIN Kudus, 1(4), 494–513. https://doi.org/10.21043/jebisku.v1i4.1286

Lu, D., Liao, M., Luo, R., Sun, J., & Xu, C. (2021). Does corporate social responsibility reduce share price premiums? Evidence from China’s A- and H-shares. Pacific-Basin Finance Journal, 67, 101569. https://doi.org/10.1016/j.pacfin.2021.101569

Lulek, A., Sadowska, B., Walasek, R., & Brabec, Z. (2024). The impact of energy companies on the environment and local communities – disclosures in non-financial reports. Economics and Environment, 89(2), 1–15. https://doi.org/10.34659/eis.2024.89.2.786

Maharani, B., Sayekti, Y., Purnamawati, I., Aprillianto, B., Irmadariyani, R., Agustini, A. T., & Arif, A. (2024). Searching for the information content of Sharia corporate social responsibility disclosures: A new ethical perspective of CSR. Journal of Accounting and Business Education, 8(4), 41–52. https://doi.org/10.17977/jabe.v8i4.37633

Naqvi, S. K., Shahzad, F., Rehman, I. U., Qureshi, F., & Laique, U. (2021). Corporate social responsibility performance and information asymmetry: The moderating role of analyst coverage. Corporate Social Responsibility and Environmental Management, 28(6), 1549–1563. https://doi.org/10.1002/csr.2114

Nguyen, V. H. (2025). Corporate social responsibility disclosure and firm value: A signaling theory perspective. Journal of Economics and Development, 27(2), 114–128. https://doi.org/10.1108/JED-02-2024-0067

Nimani, A., Zeqiraj, V., & Spahija, D. (2022). The importance of corporate social responsibility for companies: The developing market study. Journal of Governance and Regulation, 11(4 (Special Issue)), 314–320. https://doi.org/10.22495/jgrv11i4siart11

Ningtyas, C. P., Kambolong, M., & Makmur, M. (2022). Implementing corporate responsibility: A study of PT. Aneka Tambang UBPN in Southeast Sulawesi. Journal Publicuho, 5(4), 1091–1112. https://doi.org/10.35817/publicuho.v5i4.50

Nugraheni, P., Indrasari, A., & Hamzah, N. (2022). The impact of ownership structure on CSR disclosure: Evidence from Indonesia. Journal of Accounting and Investment, 23(2), 229–243. https://doi.org/10.18196/jai.v23i2.14633

Potharla, S., Mahapatra, S. K., & Turubilli, S. K. (2023). Is institutional ownership socially responsible? Perspectives from heterogeneity and stability of institutional ownership. Global Business Review. https://doi.org/10.1177/09721509231210366

Pradani, D. D., & Widiasmara, A. (2021). Analyzing CSR implementation and current ratio on the stock price of conventional banks listed on IDX from 2016 to 2020. International Journal of Economics, Business, and Accounting Research, 5(4), 323–329. https://doi.org/10.29040/ijebar.v5i4.3852

Prasetyo, M. S. (2023). The influence of institutional, managerial, and foreign ownership on corporate social responsibility disclosure. Jurnal Ekonomi & Bisnis, 15(2), 61–69. https://doi.org/10.55049/jeb.v15i2.224

Prayanthi, I., & Budiarso, N. S. (2022). The effect of social responsibility disclosure on financial performance in the COVID-19 pandemic era. Cogent Business & Management, 9, 2147412. https://doi.org/10.1080/23311975.2022.2147412

Prianata, E., Nusantara, R. W., & Akbar, A. A. (2023). Troubleshooting strategy for the andesite mining area of the Peniraman Sungai Pinyuh Village, Mempawah Regency. GEOGRAPHY: Jurnal Kajian, Penelitian, & Pengembangan Pendidikan, 11(2), 370–384. https://doi.org/10.31764/geography.v11i2.16884

Purnomo, B. (2020). Arrangement of foreign capital investment in industrial development based on social capital. Advances in Economics, Business, and Management Research, 140(ICLEH), 515–521. https://doi.org/10.2991/aebmr.k.200513.100

Putri, P. S., & Hadinugroho, B. (2023). Corporate social responsibility disclosure and ownership structure: The moderating effect of environmental performance. Assets: Jurnal Ekonomi, Manajemen, & Akuntansi, 13(2), 275–294. https://doi.org/10.24252/assets.v13i2.42432

Ramli, M., Purwanto, Thamrin, M., Maemuna, M., & Asrafil, M. (2020). Analysis of soil erosion in the mining area. IOP Conference Series: Materials Science and Engineering, 875, 012052. https://doi.org/10.1088/1757-899X/875/1/012052

Rusdiyanto, E., Hamzah, A. H. P., Nurhasanah, N., & Lubis, A. (2025). Revegetation for post-mining land rehabilitation of PT Pertamina in Hulu Rokan operating area, Riau. BIOEDUSAINS: Jurnal Pendidikan Biologi & Sains, 8(2), 207–218. https://doi.org/10.31539/bioedusains.v8i2.14886

Sabaruddin, A., Maulid, Taslim, Septiana, A. R., Jamaludin, I. I., Triani, & Junus, I. (2024). Identifying the development potency of the micro, small, and medium enterprises in Oko-Oko Village, Pomalaa District, Kolaka Regency, Southeast Sulawesi. Jurnal Kolaboratif Sains, 7(1), 1–11. https://doi.org/10.56338/jks.v7i1.4687

Septiana, V. A., & Aminah, A. (2025). Disclosure of corporate social responsibility: Legitimacy theory perspective. International Journal of Education, Social Studies, and Management, 5(1), 374–392. https://doi.org/10.52121/ijessm.v5i1.678

Tanggamani, V., Amran, A., & Ramayah, T. (2022). CSR Practices disclosure’s impact on corporate financial and market performance: Evidence of Malaysian Public Listed Companies. International Journal of Business and Society, 23(1), 604–613. https://doi.org/10.33736/ijbs.4632.2022

Umdiana, N., Kodriyah, K., & Framita, D. S. (2021). Analyzing corporate social responsibility disclosure in the annual report on abnormal returns. Akuisisi: Jurnal Akuntansi, 17(1), 56–63. https://doi.org/10.24127/akuisisi.v17i1.571.g403

Velte, P. (2023). Determinants and financial consequences of environmental performance and reporting: A literature review of European archival research. Journal of Environmental Management, 340, 117916. https://doi.org/10.1016/j.jenvman.2023.117916

Yi, Y., Zhang, Z., & Yan, Y. (2021). Kindness is rewarded! The impact of corporate social responsibility on Chinese market reactions to the COVID-19 pandemic. Economics Letters, 208, 110066. https://doi.org/10.1016/j.econlet.2021.110066

Zhou, T., Liu, M., Zhang, X., Qi, Z., & Qin, N. (2024). Does institutional ownership affect corporate social responsibility? Evidence from China. Economic Analysis and Policy, 81, 84–98. https://doi.org/10.1016/j.eap.2023.11.017