Does BOC`'s Characteristics Moderate The Effect of Corporate Social Responsibility on Performance?

Abstract

This study investigates the moderation of BOC`'s size and education level the relationship between corporate social responsibility (CSR) and performance which is proxied on Tobins Q, ROA, and ROE. The investigation was observed using the resource dependency theory (RDT) and stakeholder theory paradigms. Data were collected from mining companies listed on the Indonesia Stock Exchange for the 2015-2019 period with a total of 735 data and regressed using panel data techniques. The insignificant effect was found between CSR towards Tobins Q and ROA that indicate mining company focused on reputation and comply to regulatory than moral values. Meanwhile, CSR has significant effects to increase ROE that indicates mining companies tend to approach capital owners. BOC`'s size was unpredispose to moderate between CSR and Tobins Q, ROA, ROE that confirm BOC dodge CSR around. The extremity point is BOC`s education level has negative moderate between CSR and Tobins Q. The key strength of this work adds to the growing literature body of BOC`s characteristics moderate CSR on performances types and has demonstrated the impartiality in CSR.

Corporate Social Responsibility and Company Performance: The Role Of Board Characteristics

“…Furthermore, according to Ghardallou & Alessa (2022), companies only care about their reputation, meaning that the implementation of social responsibility is merely a formality, not morality. Therefore, investors, who are part of the stakeholders, cannot consider social responsibility as an indicator for investment decisions, thus, social responsibility doesn't influence the performance of a company (Taufik & William, 2021). This viewpoint is also supported by research from Busch & Schnippering (2022) and Ghardallou & Alessa (2022), but contradicts the findings of Karim et al (2020), Wisdom et al (2020) and Nguyen et al (2022).…”

“…This result indicates that on average, companies have a market value of assets higher than the replacement cost. If the Tobin's Q number is below 1, it is considered that the company is undervalued (Taufik & William, 2021).…”

“…Research by Rahman et al (2022), Babajee et al (2022), Bag & Omrane (2022) and Bahta et al (2020) also supports the findings. However, different results were shown by Busch & Schnippering (2022), Bashir (2022) and Taufik & William (2021) indicating no relationship between social responsibility and company performance. This paper hypothesizes the following: H1a: Corporate social responsibility practices have a positive and significant effect on ROA.…”

Environmental, social, governance e desempenho corporativo: uma análise na perspectiva da folga financeira

“…Ações ambientais e socialmente responsáveis, que melhoram a riqueza e o comportamento empresarial, atrelando-se a preceitos mais éticos, receberam atenção de organizações que buscam melhorias nas relações com os stakeholders (Lin et al, 2020). Diversos são os estudos contemporâneos (Alareeni & Hamdan, 2020;Albuquerque, Koskinen & Zhang, 2019;Atan et al, 2018;Azmi, Hassan, Houston & Karim, 2021;Buallay, 2019;Buallay et al, 2020;Bian et al, 2016;Duque Grisales & Aguilera-Caracuel, 2021;Han, Kim & Yu, 2016;Hsu et al, 2021;Javeed & Lefen, 2019;Jost et al, 2021;Liang & Renneboog, 2017;Li et al, 2018;Lee, Cin & Lee, 2016;Nekhli et al, 2017;Nollet et al, 2016;Taufik & William, 2021;Velte, 2020) que postulam os efeitos do ESG no desempenho corporativo, não existindo evidências definitivas sobre os reais impactos desta relação (Alareeni & Hamdan, 2020).…”

“…Pesquisas que analisaram a relação entre ESG e desempenho têm sido amplamente realizadas (Mohammad & Wasiuzzaman, 2021). Os resultados dos efeitos do nível de divulgação ESG no desempenho corporativo variam entre positivos (Buallay, 2019;Javeed & Lefen, 2019;Jost, Kroenke & Hein, 2021;Liang & Renneboog, 2017;Li et al, 2018;Nollet, Filis & Mitrokostas, 2016), negativos (Atan, Alam, Said & Zamri, 2018;Bian, Gan, Li & Hu, 2016;Duque-Grisales & Aguilera-Caracuel, 2021;Taufik & William, 2021) e sem significância estatística (Buallay, Fadel, Alajmi & Saudagaran, 2020;Hsu, Liang & Matos, 2021;Nekhli, Nagati, Chtioui & Rebolledo, 2017).…”