Title: THE EFFECT OF POLITICAL CONNECTIONS ON CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE: POLITICAL STABILITY AS A MODERATING VARIABLE

Authors: SARI AGRIANY NATONIS

Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya

Publisher: Universitas Airlangga

Abstract

This study aims to empirically test the influence of political connections on corporate social responsibility disclosure, as well as the moderating impact of political stability on this influence. The data used in this study are sourced from corporate sustainability reports, corporate annual reports, and the World Bank website. The sample in this study is 190 high-profile industrial companies listed on the IDX in the period 2015-2017. Corporate social responsibility disclosure is measured using CSRI based on GRI 4 standards, political connections are measured using Political Exposed Person in Bank Indonesia Regulations, while political stability is measured by the political stability index issued by the World Governance Index. The analysis technique used in this study is Ordinary Least Square regression with the help of STATA 14 software. The results of the study indicate that (1) political connections have a significant positive effect on corporate social responsibility disclosure, (2) political stability does not moderate the effect of political connections on corporate social responsibility disclosure, but political stability has a significant positive effect directly on corporate social responsibility disclosure.

Keywords: corporate social responsibility disclosure, political connection, political stability.

Sources: http://repository.unair.ac.id/92061/