The Effect of Profitability and Firm Size on Corporate Social Responsibility Spending: Study of Mining and Agriculture Firms in Indonesia Period 2005-2010
Best known for its riches in natural resources, Indonesia is basically a great place for mining and agricultural firms to be established and settled. However, the two-side impacts of mining and agricultural firms towards the economy and society in Indonesia have long become a discussion. The questio...
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| Format: | Thesis |
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[Yogyakarta] : Universitas Gadjah Mada
2013
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| Summary: | Best known for its riches in natural resources, Indonesia is basically a
great place for mining and agricultural firms to be established and settled.
However, the two-side impacts of mining and agricultural firms towards the
economy and society in Indonesia have long become a discussion. The question
raised would be how these mining and agricultural firms would attempt to behave
responsibly given the fact that the managers are faced with several different
expectations by their stakeholders. This thesis tries to examine how the firms�
profitability and size affect the firms� spending on Corporate Social Responsibility
given the different ownership model during the period before and after the
government�s regulations on Corporate Social Responsibility took place using
Multiple Regression Analysis. The conclusion shows that although profitability
and size of the firms significantly affect the firms� CSR spending, there are some
differences imposed in different periods and different ownership models as
imposed with the difference significance levels. Ownership models affect the
firms� CSR spending to the extent where government-owned firms tend to spend
more compared to the private owned firms. The state regulations however, seem
to leave the private owned firms unaffected while at the same time has the full
effect on the government-owned firms. |
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